Newsagents are spending between 1% and 2% of magazine sales revenue to return stock which has failed to sell.
With around 90% of the returns freight cost relating to full copy returns, it would be appropriate for newsagents to research whether they are contractually obliged to return full product.
Take the Network Services / ACP relationship with newsagents. The ACP contract outlines our returns obligations for ACP titles. I am not aware of any such obligation for the return of non ACP product to Network Services.
It appears to me that newsagents could return non ACP product which has failed to sell as topped. Such a move would dramatically cut the cost of returns freight. For Network alone, some newsagents could save between $1,500 and $2,000 a year.
I am not advocating this. Newsagents need to do their own research, make up their own minds. Given that the cost of returns is such a contentious issue I would have thought that at least one of the newsagent associations would already have legal advice for newsagents on this.
The alternative is that newsagents are paid a fee for handling full copy returns. A fair fee would be in the range of twenty cents to forty cents per copy. Magazine distributors charge such a fee to publishers for full copy returns so why not newsagents?
As it is, we pay to return magazines which have failed to sell and sometimes find these same failed titles being sent to us again. And again!
So, Gotch, Network and magazine publishers, what is it?
- Pay a fee to newsagents for full copy returns.
- Accept top only returns for product which has failed to sell.
It is time for those who control magazine allocations to take a fair share of the risk.
In the meantime, newsagents need to consider whether they check their contracts and act on the high cost of full copy returns.
easy fix is the distributors pay to send it back , if they want it and we didn’t ask for it in the first place then they pay . or the whole lot gets topped . (mine all go back topped except part works and AWW cook books )
Mark – I agree fully with what your saying. We already top all early returns / gross oversupply regardless. I would be interested in what explanation the folks at companies like Pacific Mag etc have to say as to why they insist on full copy returns. Why are the knowinly burdening retailers with this additional cost?
Very interesting Mark – have to say I just accepted that it was in the contract, silly me! Totally agree with your thoughts on the associations – why do they spend so much time on areas that are of little concern/low priority & ignore the issues that have been plagueing newsagents for years & years.
The QNF arranged for remote agencies to return all stock as tops.
I would also ask the question, what is a top? Is it the front page, or just a small identifying portion of the page?
Brett – Is that just remote QLD newsagencies?
I believe it is for all those past the tropic but I stand to be corrected, ring the gals at the QNF office and they will let you know.
Here is is,
Qld agents may send tops only for all distributors (inlu Fairfax) if they are
1. From Gladstone (and surrounds) upwards to encompass all of FNQ.
2. From Gladstone out to Springsure and down to NSW border
3. All newsagents west of Followmont’s R4 line on attachment.
I sent the attachment to Mark, hopefully he can put it up on the blog
Cheers
Brett, my understanding is that there is no contractual obligation re returns except for ACP product. Distributors may say something different. I’d like to see where the contract supports them.
Isn’t a top the thing that is retailed…..so the bag not the three mags inside it??
More recently, Network in Sydney has expected the full front cover including the bar code, rather than just the top title banner (as was once the case). Although most AUS mags have the barcode on the front, sometimes the it is on the back cover, meaning we send the full cover to be sure.
Top the “Title” & then staple the barcode to it.
For Full returns, can we write “returned from xxx newsagency” in black texta on the front cover.
This would, at least, stop it being sent to other shops in an eternal cycle.
Miles, good idea there is nothing stating it has to go back in reselable condition , maybe they might get the message after awhile
This is an issue our associations should be addressing. I assume all contracts are similar to eaxh other and the associations have the resources which we pay for to do this.
We top thousands of dollars worth of mags. We still return part works full and AWW large recipe books. What ever the return method it is a huge cost in labour and postage or freight. We top the masthead staple them together with one barcode also stapled to this for scanning just in case our magazine labels don’t scan. We have a fairly small parcel to post but very time consumming too. The problem still lies with massive oversupply. We need a system in place to easily control supply then the return issue will not be a problem.
It would be interesting to see what would happen if newsagents ‘test’ the full copy returns request for non ACP titles.
I have checked by contraact and Mark is right. I am going to try tops only for the next couple of months with Network and see what happens.
Why, oh why, aren’t we hearing something from the distributors about this???
They know about this discussion, and others, so I’ll bet my lunchtime sticky bun for a week that they’ve got their legal team onto it quick-smart.
Oh yeah, they’re the boss of us.
If we are all having the same magazine oversupply issues then why is it that our supposed body ANF, etc has done little to fix this issue. i can tell you that woolworths does not have this same issue as they only pay for what they sell and if am to understand correctly no longer even do returns!!!!! If we as newsagents are the largest distribution outlet then why dont we recieve the same treatment. We will not survive as viable business if we dont do something as an industry whole. if they want prime realestate in our stores then why dont they pay for it they do in woolworths, big w, target etc they get front of store prime real estate at a cost or incresed commisson or better trade terms.