A niche magazine publisher has offered a newsagent a better deal for the title that what is available through Gotch. The offer came as a result of the newsagent querying why the magazine in in non newsagency retailers before newsagents get stock.
This was of interest to the newsagent as they have been a big supporter of the title. They were concerned non newsagent retailers nearby could take sales from them.
Here is part of the response they received.
You’re more than welcome to purchase the magazine wholesale direct from me if you want the magazines as soon as they come back from the printer. I sell them wholesale for $6.50 each inc GST and they retail for $12.95. I believe this is a much better profit margin than what the distributors are offering newsagents. I have a minimum order of 10 copies though, and postage is additional (just depending on quantity).
I suspect this price of $6.50 a copy is lower than the price charges to Gotch by the publisher.
It is dangerous for any publisher to open their own direct supply relationships as it damages the overall offer and could confuse return arrangements and other aspects of the supply model.
I’d like to see this publisher at least stop supplying now newsagency retailers after newsagents have the title. Then, I;d like to see them invest in our channel ahead of others as we are the magazine specialists.
Mark – I would suspect that this would be a firm sale arrangement with no option for returns. No way the publisher would wear the returns risk and offer such a good margin. Would be interested to know if this is the case.
The outcome back in September was a response from the magazine that distribution through non newsagents would not be ahead of availability to the channel.
The magazine in question, Adore, is again being advertised as available today. Same store as last issue. Again available before newsagents receive on 1st December.
Won’t be selling any copies of this issue in my store.