Month: December 2007

I’ve noticed fine tuning of supply of Zoo Weekly since ACP magazines took over and while it may be coincidental, it is unfortunate. In one of my stores, Zoo fluctuates. Not having enough stock to co-locate – as is now the case due to recent supply cuts – means some weeks we are not able to reach our sales potential. This will push supply down … the spiral continues. Zoo Weekly is one title I am happy to be oversupplied, within reason.

Reader’s Digest and their distributor, NDD, are engaged in what I consider is unconscionable conduct with my newsagency and, I suspect, hundreds of others.

As I blogged here in December 2006, they increased supply without justification in the sales data for such action. Reader’s Digest and NDD have just done it again and increased supply based solely on their cash-flow goals and not on my sales data.

This is commercial rape. The weakest party in the magazine supply chain, newsagents, are being systematically abused by bigger bullies like Reader’s Digest and NDD. They conspire to supply at a quantity far beyond what we can sell. They increase beyond this unsaleable quantity without any justification. They do this for their own pleasure. Newsagents are helpless. Calls to the ACCC to act fall on deaf ears.

Newsagents have all but given up and focus instead of titles which do not abuse newsagent generosity.

I understand that calling this behavior by Reader’s Digest and NDD commercial rape is inflammatory. Despite promises that the behaviour will be modified it has not. The abuse continues. So, what is left but to bring focus to two companies so intent of harming small business newsagents?

I have data to support my claim – not only from my newsagency but others too. If only the ACCC had an interest in stopping clearly unconscionable behaviour.

More publishers are doing what ACP Magazines has done with their Take5 brand. This Take5 Ingredients title leverages the awareness around the Take5 brand with a popular food based offering.

Our challenge as newsagents is to leverage the existing brand connection while at the same time pursuing category opportunities. So, where to put this title. Some newsagents will place it in the food section and others near Take5. Both decisions are right.

The challenge with placing Ingredients near Take5 is space. The weeklies space is tightly managed with no room for new titles. There is more flexibility in food.

My approach is to give premium space to the title for a week or so in the hope of it selling well, out even. Based on the experience with Woman’s Day and Women’s Weekly related sister publications having these one off titles next to the parent works better.

Extending the reach of the brand as titles like Take5 Ingredients does is good for newsagents as long as we work at maximising the opportunity.

No wonder newsagents suffer from high blood pressure when Reader’s Digest and magazine distributor NDD combine to dump a title like this on their shelves just before Christmas. First up, this is a book and not a magazine. Unless newsagents are in the book space, it is unlikely they will have the appropriate space for display. At $29.95, the cost to a newsagent for shrinkage would be too high to risk putting the title on the shelves. Further, a four month shelf life is ridiculousl.

Once again, NDD grabs newsagent cash for a title which will be cash-flow negative in all but 1% to 2% of newsagents. This is unconscionable behavior. Newsagents ought to complain to the ACCC as NDD has no data basis on which it can justify sending this title.

Shame on Reader’s Digest. Shame on NDD.

NDD, the magazine distributor which claims to be expert in this area ought to know better than to send more Australia’s Best Cars Magazine to newsagents with an expected shelf life of eight months. What is worse is that this title was supplied too late for early return in December so we are out at least a month in terms of cash-flow.

From the scale out I have seen, it appears little attention has been paid to the sales of car magazines – meaning gross over supply. Not that the RACV, NRMA, RACQ et al care. Their hands are all over this unconscionable conduct because, as publishers of the title, they set the size of the print run and this is, I suspect, what NDD must scale out contractually – with little regard to what will actually sell.

So, Happy Christmas newsagents, enjoy being ripped off by a magazine model which is stuffed at this bottom end of titles, a magazine model which despite rhetoric, is not changing. There is no need for meetings and conferences to agree on a best practice model, if it won;t sell, don;t send it, if it has a sell through rate of less than 50%, send less. NDD abuses the system and says it will talk about changes and every month the talks go on they abuse newsagents as they have with this title.

What’s worse is that the auto clubs have created a website to promote the title and do not list newsagents as outlets carrying the title. This is offensive.

I’ve been looking at data from eight newsagencies and each is showing good growth in the Current Affairs and Business magazine category. I put this down to a combination o the election, and strong property interest. The other category which performed well in November is Buying & Selling with double digit growth being achieved in several newsagencies. This is a surprise to me as the category has been tracking down for around two years.

Benchmarking among a group of newsagents around magazine categories is fascinating and leads the newsagents participating to go back to their stores and adjust on what they have seen others achieve.

Check out idiomag for a new model in music magazines. As their website says:

idiomag is a high-quality, digital magazine currently personalized to each individual user’s interests in music. It keeps them “in the know” about the artists and genres they love, as well as finding new artists that they might like. It includes feature articles, reviews, galleries and interactive elements in an engaging format that users can access whenever and wherever they want it. Users can read the article, play the track, view the video, check for gigs, and go off to buy the mp3 or ticket or share their views with their friends.

We utilise all the knowledge this generates about our users and their interests to deliver the most relevant experience and to target the most compelling advertising.

Very impressive. Their Facebook integration is an excellent example of using web 2.0 social media to connect friends based on music stories they are reading.

Newsagents received House & Garden magazine on Monday of this week. We have been told it is to be on sale for two months. Smart newsagents will push hard to sell out in the next two weeks because who would buy a Christmas themed title after Christmas? Such a long on-sale is nuts. What this really does is stop newsagents returning for a credit prior to February which means it could be the end of March before we get our money back. What is this long on-sale period other than a boost to the cashflow of ACP Magazines?

We have replaced our display of gree magazines at one of our counters with this display of property and investment titles.

Property and investment is an often forgotten category in newsagencies, relegated to second class real-estate. We are hoping, through the display, to remind people that we have a broad offering.

We know from our sales data that the work we have been putting into this category elsewhere in the business is delivering above industry benchmark growth – proving there is a good market in our newsagency.

While these displays are extra work, they payoff is the reinforcement that we are magazine specialists.