In a discussion with a small publisher yesterday they asked whether newsagents would take their products on a firm sale basis in return for 45% commission.
This is becoming a more common discussion point in the smaller publisher circles as they look for ways to break free from the traditional magazine supply model.
In addition to the firm sale commitment, they would be looking for guaranteed placement – not so much in a premium location, but certainty as to location of their title.
While the 45% is good progress, I would like to see a margin of more than 50%. This would make the title very interesting. Oh, and not a one off based on a sales stretch like with the latest issue of Cosmos but permanently in return for firm sale and placement guarantee.
Lets have that conversation and if they want location then lets have a conversation about what that location is worth. I would be happy to have firm sale magazines in specific locations but I want to be able to set a fair price for that.
Ttell the suppliers keep dreaming
it would depend on what the mags where if they are reasonable mags but maybe more than 50% commission
If we were to be dictated to as to where we were to stock a title we would want a lot more then 45%, good idea but lets put a realistic value on our real estate.
the only ones that you would take on for a firm sale would be the good sellers anyway so position should not be an issue because obviously you wouldn’t hide it down the back of the shop you would be placing it in a prime position . Do you really think GG and NDC would go to firm sale , how would they make there money ?i see it as a good thing for the industry but a dream
We would also need to be able to strictly control supply as well. You certainly wouldn’t want to get say 10 copies of a mag on firm sale, sell four, then get 40 of the next issue.
Shaun,
What you say is correct the more commission the better one would promote it. You hit the reality check tell ’em the’re dream’n” would be the suppliers and the publisher’s response.
Shayne Firm sale means you choose the stock and in the main most newsagents would choose to sell out that’s why the publisher’s would not participacte in such a scheme. Was tried with newsapers in Sydney in the early fifties turned into a dud because newsagent bought to sell out. Publishers then went back to sale or return at 22.5% G.P. for quite a few years the to the now cast in stone 25% then on a 5% net return basis, which proved to be unsustainable.
All good ttheory but it ain’t gonna happen.
What we need is cah flow assistance to help them help us This would maximise product sale (suits all) and minimise liquidity problems.