Australian Newsagency Blog

A blog on issues affecting Australia's newsagents, media and small business generally.

Losing money on some magazines

Mark Fletcher
December 27th, 2007 · 2 Comments

old_magazine.JPGThis issue of Your Toddler magazine arrived on August 8 this year. It is not due to be returned until week 5 2008 which means newsagents will not see a credit until late February at the earliest. We received six copies and have sold three – generating a gross profit so far of $5.85. The cost to us in terms of real-estate and labour from hosting this title is $17.50.

Nothing new in this, it is the magazine supply model at work. Newsagents control the key asset of retail real-estate yet we are treated appallingly.

Network Services, the distributor of this title, is the first to cut newsagents if they are a day late in paying their bill yet they will gladly abuse newsagents by supplying on loss making terms as the example above shows.

This is another reason newsagents need a magazine czar who speaks for the whole channel and controls what we are supplied and the terms. Without this, companies like Network will abuse our lack of strength and disorganisation.

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Category: magazines · Newsagency challenges

2 responses so far ↓

  • 1 SHAUN STEPHENSEN // Jan 25, 2008 at 8:26 AM

    I am only new to this game, when a magazine comes in that i don’t think will sell i pack it up and send it straight back .I can;t understand why the ANF or the QNF have not done anything about this situation.I continually cut back on stock that does not sell only for it to return 3 or 4 weeks later .So the best thing i can do is just keep sending it back as an early return .

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  • 2 mark // Jan 27, 2008 at 10:36 AM

    Shaun, Staying on top of magazines is challenge. You need to balance between fair supply and having the right range to grow your sales. Often, what we think will not sell does sell – the key is to find the best way to display this in-store. I’d be glad to help if you contact me direct. Mark

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