Here’s why I think plenty of newsagents are done with diaries from the magazine distributor
It’s diary and calendar season. For years this was a strong time of year for newsagents. We used to love it, because we didn’t know any better.
It still can be. But I’m seeing more and more newsagents ignore diaries and calendars supplied through the magazine distributor. They’re giving the space to other products, and to diaries they buy direct.
I don’t blame them one bit.
Half the margin, same amount of work
Good diaries from direct supply arrangements can earn you around 60% margin.
Diaries and calendars through the magazine distribution model earn half that. Sometimes less.
Then there’s the time. Product arrives on the distributor’s schedule. Someone has to check it in, display it, and later process returns. That’s labour you pay for, on a product that earns you half the margin.
When you have limited space and limited hours, the choice is easy. You back the products that pay you properly – products over which you have supply control.
This is financial disrespect
I think the magazine distribution model for diaries and calendars disrespects newsagents.
It treats your shop as shelf space to fill. Your business needs a return on that space, and the model doesn’t seem to care whether you get one. It asks you to give prime seasonal space, staff time and counter support to products that pay you a fraction of what the alternatives do.
Newsagents have noticed. That’s why these products aren’t getting the space and support they once did. That’s a sensible business decision, nothing more complicated than that.
What I’d do in your shop
- Compare the margin on distributor-supplied diaries with what you make from direct suppliers. Your POS software will tell you. Your gut might not.
- Your seasonal space is some of the most valuable you have. Work out what each metre earns, and give the best spots to whatever earns most.
- Put direct-supply diaries and calendars up front and promote them.
- You don’t have to give your best space to a product that earns half the margin and costs you time. Cut it back, or say no.
If a product pays half as much and takes the same work, it shouldn’t get your best space.
To publishers: take note
If you publish diaries or calendars and reach newsagents through the magazine distributor, this part is for you.
Newsagents are done with this financial disrespect. Low margin product, delivered through a model built for magazines, will keep losing space to suppliers who pay retailers properly.
If you want newsagents to back your product, pay them a margin that makes it worth their while, and deal with them directly. I think you’ll find plenty will give your diaries and calendars the space they used to.