FourFourTwo magazine is losing money for us. With a return rate of greater than 60%, we lose money once we account for labour and retail real-estate. The loss could be reduced if the magazine distributor took a more newsagent friendly approach to allocations. That we have a poor sell through without a fair allocation response shows that sell through is not important to the magazine distributor. Remember, they get paid to distribute and we get paid based solely on sales.
I wonder what happens with other retailers with which newsagents compete when titles do not perform to a reasonable level? Are they compensated? If they were, if newsagents were found to not have as good terms, newsagents would have every right to be angry and disappointed. Just wondering…
What about the cost to the enviroment as well caused by the waste and transport?
Steve