In response to posts and comments on this blog, the publisher of the soon to launch milk magazine is offering newsagents direct supply and a margin of 40%. They are planning a range of marketing activity to support the new title and will provide newsagents with A3 posters for in-store display.
I always cheer when I see a publisher directly engaging with newsagents in this way. I am especially thrilled that they are trying a direct supply model. I hope that newsagents support milk and find sales success from stocking it.
Well done Milk for working with newsagents like this. It is terrific that publishers read our comments here.
This is not in my area but may I also say that it is refreshing to see a publisher engage. I wish you all the success in the world. In these times we must all find a way of doing business better.
While it is great to see publishers experimenting with the idea, a direct supply model is almost always going to be far less efficient for the retailer.
Why?
Brett,
Processing returns, managing stock arrivals and dealing with multiple accounts is both tedious and time consuming. Imaging having to send returns back to even just 30 different publishers! The process would be logistically inefficient
Jarryd,
EDI will process all of the returns and arrivals as usual, account will not matter as it does not matter now. Transporting returns will be a challenge but not onerous. I like many others seek out new product for our stores. This requires setting up additional EDI profiles and handling returns on occasion, each hurdle is jumped in order to gain access to better products at a beter margin. I see no difference here. Indeed in these cases supply may not be the problem we have now because supply should be to suit the need and therefore returns may not even have to happen or if they do it may well be an envelope with a few bits of paper inside.
Brett,
XchangeIT is a platform maintained by the major distributors. Individual small/medium publishers are unlikely to have the infastructure and resources to integrate with XchangeIT.
Transporting returns will be logistically difficult. For one publisher no. But if it were 20 or more different returnes that had to be processed the process would certainly become onerous – not to mention expensive to transport.
By accounts I mean payment of credit accounts. Direct supply means more accounts which means more work to process them.
Hi All,
The first issue of milk is now available and has been distributed to most of Gippsland’s newsagents. If you have been missed (!) or are in a fringe area that might be interested in a mag all about Gippsland (events, gourmet, lifestyle, arts & culture et) please get in touch.
Thanks,
(PS we put in a ‘put away’ form for readers to give their newsagents)