The announcement by Borders in the US of an agreement with HarperStudio to buy books on a firm sale basis instead of the usual sale or return basis is a significant move in book retailing in the US.
If magazine publishers and distributors in Australia offered firm sale with better margin, some newsagents would embrace the opportunity. These newsagents would have more reason to sell product purchased on a firm sale basis.
AND if the supply agreements changed accordingly, with newsagent control of supply.
What kind of margin would be attractive to newsagencies under a firm sale arrangement? As a POD magazine, we would definitely embrace such an opportunity. There are one or two stores we currently deal with that purchase copies outright — with very generous margins — but most stores we deal with still prefer sale-or-return so they’re not stuck with unsold stock.
Michelle,
Different newsagents will have different answers. I would think a margin of around 40% is a good starting point.
Mark
Hmmm, that’s what we offer already. Thanks for that Mark.