Further to my blog post yesterday about the contracts released by Fairfax subsidiary IPS, Australian newsagents have the best opportunity in decades to drive change to the magazine distribution model.
Imagine the message it would send to Gordon and Gotch, Network Services and their publisher clients if masses of newsagents embraced to new IPS model. This would be a vote for change. It would demonstrate that newsagents want more business controls over magazines.
Fast forward six months and think about how Gotch, network and their publisher clients might react if IPS publisher clients are reporting good sales from the newsagent network. IPS could deliver a good win win win – newsagents, magazine publishers and the distributor all win from selling more magazines.
Newsagents can make this happenby engaging in the business terms and taking control over magazines.
This will be a foreign situations for us. We are not used to having such control. Don’t be afraid. Embrace it. make the most of the opportunity. Use your business acumen to make good business decisions. Take ownership for what happens with these IPS titles as a result.
I cannot stress enough what is at stake for newsagents from the entrance of IPS to the magazine distribution model. This is an excellent opportunity for newsagents.
Hear, hear!
Time for change it long overdue, publishers need to stop hiding behind distributors and blaming them.
The distributors act on publishers demand. They don’t support agents they support publisher as they us where their revenue comes from.
IPS have made a stand on behalf of Agents. The IPS model is a step in the right direction, we need to move to a model where no returns and where the range of titles is optimised, do we really need 12 different 4WD magazines, 6 cross stitch mags, 8 snowboarding and so on./.
What are Coles and Woolworths doing?
• They are pushing for scan based trading, i.e. no returns,
• They are optimising their range, one/two titles in each category (outside of the mass titles)
• They negotiate better margins, promotional spend and rebates.
They understand the cost of the category and they know that by eliminating returns, decreasing the range whilst still carrying the offer of magazines increases profitability. Newsagents need to start doing the same.
Start sharing information on strong sellers and poor sellers eliminate the poor performers from our industry, they are just clogging up space, confusing customers and tying up our cash. Share your top 800-1000 titles with each other and work together to get rid of the rest. Publishers won’t help you do it, distributors wont’ help you do it, you have to stand united and do it together
Publishers and distributors take note, the time for change is now, we will support the IPS model, this will result titles from the others distributors being rejected. But we want more, we want scan based trading, no returns and greater margins.
Newsagents start talking with each other inside and outside of this forum, get others on board and work together., Governments have been overturned by people, so why can’t they newsagent community work together and push change.
People can influence change!
Could not agree more with the above thread.
Its imperative that all newsagents get on board to support IPS en masse. So that the other 2 distributors start listening.
Well done to the people who negotiated these outcomes with IPS.
Is that the faintest of light i see at the end of the magagine tunnel.
Lets hope within a short time we are blinded by its success.
Little steps? Did you read the contract? Looks like a wolf in sheep’s clothing to me!
at least this a move forward, it has my full support
I notice in the contract it says no early returns. Does this mean every time a new title is sent to us we have to hold on to them and pay on the invoice until such time as we can return them? This could be 3 – 6 months. This would surely tie up capital as the great advantage we have now is that we can early return for instant credit.
Bob, with you controlling the titles and quantities provided I reckon this is okay. It is much better than what you have today.
It is pleasing to see through a cross section of Newsagent representatives that there has been a breakthrough has happenned in the magazine distribution industry.
Congratulations for representing Newsagents and for breaking the Mexican Standoff that has plagued the distribution network.
Richard could be right, I hope so.