News Corp. in South Australia is encouraging newsagents to promote a luck dip bag of previous promotional products the company must have in a warehouse. The packs look cheap. They resemble similar packs I have seen some newsagents create using gifts taken off the cover of magazines.
Besides poor execution, this promotion is being pitched at the wrong time of the year. Newsagents are focussed on gifts, even stocking-stuffers, from which they can earn more substantial gross profit and longer term business benefit.
Here is the pricing pitched by News:
Charging
Cover price: $2.00 per copy
Advertiser $1.40 per copy
Lucky Dip Bag $0.60 per copy
Agents’ rate: $1.50 per copy
Advertiser $1.05 per copy
Lucky Dip Bag $0.45 per copy
Sub-agents’ rate: $1.75 per copy
Advertiser $1.225 per copy
Lucky Dip Bag $0.52.5 per copy
With that poor presentation I would want 100% markup before considering it