A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Welcome competition in magazine distribution

The competition in magazine distribution being offered by Integrated Publishing Solutions, a Fairfax company, will be welcome by proactive newsagents and publishers with a model based on sold copies rather than distributed copies.

Giving newsagents the ability to control supply around some simple business rules is an excellent move on the part of IPS.  It demonstrates a trust between IPS and newsagents.  It also recognises the imperative that magazines need to sell to be viable in the newsagency channel.

If enough newsagents and publishers embrace the IPS model it could bring about valuable changes in other magazine distribution businesses. They will have no choice but to react commercially.

For too long, the excuse of early return has been used to appease newsagents who complain about oversupply.  Early returning is no solution at all given the labour and freight cost as well as the waste.

By engaging the newsagent to set supply gives us the opportunity to make business decisions around magazine range and supply.  I welcome this and look forward to IPS coming on stream with XchangeIT later this month and inviting more newsagents to establish direct supply accounts.

The new IPS model could be the best news for newsagents and magazine publishers in decades.

0 likes
magazine distribution

Join the discussion

  1. allan wickham

    Mark, with IPS being a Fairfax company will that mean i will not be able to get them direct as i am a retail only outlet with no Fairfax account?

    0 likes

  2. Mark

    My understanding Allan is that you will be able to.

    0 likes

  3. Jeff

    Mark I agree this is a good opportunity. I have heard what is in the proposed IPS contract and it is a significant departure from what we are used to. If we do not grab this and push their titles then we cannot call ourselves business people. Most of what I was looking for is in there.

    0 likes

  4. Angelo

    My Fairfax rep was in yesterday and explained this to me. I was impressed. They seem to have taken a very good and, in my opinion an unbiased approach to setting this up. I do like some of their titles, not all but the administration of it will definitely be head and shoulders above the rest.

    0 likes

  5. Smiley

    Hi Mark. What do we need to do to join up or will it natuarally happen. Is it australia wide ?

    0 likes

  6. Mark

    Smiley, they will be sending out contracts. I expect to put a link here once the contract is in the public domain.

    0 likes

  7. Shayne

    Angelo – you have a Fairfax rep? We haven’t seen one in the 3 1/2 years we’ve been here. Next time you see him/her mate do me a favour and let them know where we are.

    0 likes

  8. Mark

    I am shocked at the lack of comment on this topic. IPS is delivering to newsagents much of what they wanted and much of what has been written here and now we go quiet.

    0 likes

  9. Brendan

    I’m hanging out for contracts to be available.
    1. This sounds likes a great opportunity to improve the magazine model.
    2. Hopefully it may flow onto the other distributors if it’s successful.

    0 likes

  10. Vicki

    Mark, you are right and its a great opportunity to access a better distribution model, but what magazines are published by IPS? Forgive my ignorance on this but most of the Fairfax magazines we get are very much niche market stuff, not ones that sell in high volume.

    0 likes

  11. BAZ

    Mark, I’ve never heard of IPOS – are they Fairfax Media. Sorry for not commenting but I know ABSOLUTELY NOTHINH about this – no contract hdere to sign yet

    0 likes

  12. BAZ

    Sorry.. I mean IPS

    0 likes

  13. shaun

    only a select few know anything about any contracts or for that matter anything anout it at all , so what is there to comment on ? love the idea but it is a wait and see what is on offer

    0 likes

  14. Peter

    Want to see the goods before I comment further.

    0 likes

  15. Mark

    I guess it was that there is a new third competitor, we will control the titles we receive and the volume and that they have spent almost a year actively consulting with newsagents and their representatives.

    Also that product will come to us on newspaper trucks makes for a more flexible distribution arrangement if managed well by all stakeholders.

    0 likes

  16. shaun s

    when is this happening because i have noticed that on the connect site there are no more magazines , and i still have not heard from anyone about what is happening . Does this mean they have given me the flick and do not want to supply mags ?

    0 likes

  17. Mark

    No, they are firing up in a staged way. trials start this week with a small group.

    0 likes

  18. Wendy

    Like shaun s, I am in the dark about what is happening. The mags have disappeared from Connect. We received an email from XChangeIT to say a new account has been set up, subject to agreement with IPS. But no further information. Even with trials starting with a small group, what of those of us who are obviously not in that small group?

    0 likes

  19. shaun

    Whart about those customers that where purchasing mags from us that we will not be getting (from what i gather) anymore untill the trial finishes ?
    i stuck by them when they started distributing mags even though it was a stinker of an arrangment and now i am in the dark about it ……not happy

    0 likes

  20. Wendy

    This is the first I have heard of this and I have not been approached by Fairfax, even though I think we have an account. I would like to see a catalogue of their publications. I would certainly support it if it is indeed a fairer and more sensible method of distribution.

    0 likes

  21. Y&G

    Wendy, this is one of our problems with this whole thing. Nobody has actually approached us at all.
    Instead, we were directed to Connect to find out anything, waaay after the fact.
    No sweeteners, no ‘sell’.
    I would have expected at least some information, before finding our usual titles had simply disappeared from our supply list.
    A grapevine (blog) is the worst possible way for us to find out about this.
    The previous method of distribution was neither ‘fair’, nor ‘sensible’, however I see no evidence of anything changing. The can’t even manage their directives :-/
    Speaks volumes.

    0 likes

  22. Mark

    Y&G

    IPS has used a number of channels for promoting their new model including using this blog for passing on details. It’s hardily grapevine.

    The differences between the IPS model and the model of the others aree considerable.

    0 likes

  23. Y&G

    Sorry, Mark, but having us trawling around amongst irrelevant homepage headings on Connect is hardly informing anyone. Neither is getting an email telling us to do just that, several days after hearing about it on this blog.
    As for the ‘model’, the differences that matter to us don’t exist.
    It gives us no option but to subscribe to it, if we wish to retain supply. Further, the titles we’re still contracted to recieve are no longer available, whether we agree or not.
    As usual, we have no say – it’s just sprung on us with no iformation at all.
    And that’s just plain rude.

    0 likes

  24. Y&G

    So, we’ve been held to ransom if we wish to retain our putaside customers. Without notice.
    So, Mark, if they’e used ‘a number of channels’, then none of them led to our door.

    0 likes

  25. Mark

    Y&G

    All the state associations, the ANF, Fairfax distribution newsagents and this blog.

    0 likes

  26. Y&G

    Erm.. We are Fairfax distribution newsagents, Mark.
    Obviously some cracks need to be repaired.

    0 likes

  27. andy

    Mark I am also a distribution agent and have not heard anything.do you know who will be offered a contract is it only thoes that have a fairfax distribution account or is it anyone who asks?

    0 likes

  28. Mark

    Andy anyone can apply. Fairfax will decide.

    0 likes

  29. Chris

    Hi Guys,
    How would you react if a new supplier came into your shop without warning and gave you a range of products to sell and you had to accept them and keep them for lets say.. 3 months even if they do not sell? What would you say to this supplier? Normally a “rep” comes to your store and discusses their business and how it would suit your business and then ASKS if you would like their product. IPS is a new business and should be treated as such. They have shown a total lack of respect for the newsagency channel by not personally informing each newsagency “directly”. Using blogs and NANA and the ANF is a disgrace and it is a disgrace that the ANF and NANA have let them use their email database. This shows how the ANF and NANA are “supporting” newsagents!
    They are using the Fairfax titles that are well intrenched in your business, ie. Best Bets, International Express etc to threaten you to sign up because they know that if they didnt have titles that we already sell consistently most of us would not sign and they would go bust. Their trading terms are disgraceful and the fact that you have to trial new titles is a joke. This is MY business and I will stock the products I know will sell in my area.
    We are putting all IPS prodcust straight back on the Fairfax truck and we will not be signing up with them. I hope alot of you out there stick up for yourselves and do what is right for your own businesses.

    0 likes

  30. Mark

    Chris, let us know how that approach works with Gotch and Network.

    0 likes

  31. Chris

    Mark,
    This is an issue with this new company IPS. I did not mention Network or Gotch.

    0 likes

  32. Mark

    Chris, this is what you said:

    MY business and I will stock the products I know will sell in my area.

    Let us know how that approach works with Gotch and Network.

    0 likes

  33. Chris

    This process is working fine with these companies as I have the ability to cancel supply of a magazine, even if I sold one copy in the last 6 months, and I have the ability to early return any magazines I do not want at any stage of their shelf life.
    So thanks for asking Mark

    0 likes

Leave a Reply

Your email address will not be published. Required fields are marked *

Reload Image