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Is this evidence of magazine oversupply by Gordon and Gotch?

Some people at Gordon and Gotch are unhappy at what I write here about oversupply.  If what I am told is true, they have been known spin what I write, responding behind my back to complains I make.  Like anyone reading this blog, they are welcome to respond here, to my face as it were – for all to see.

I share this information as background to this blog post which documents, in my view, evidence of another decision to oversupply by Gordon and Gotch.

Click on the image to see a screen shot from my newsagency software showing supply and return data for Jumbo Ring A Word, a imported crossword title distributed by Gordon and Gotch.

My reading of the sale and return data suggests that we should get five copies of this title.  It is the kind of title which should sell out by week three before there is any increase in supply.

Without sales data support, the Gotch allocations system moved me from five copies to seven and now to eight.  While I am sure that they will have their excuses, the data is all you need to make your assessment.  As I have noted, maintaining supply at five copies is what I would suggest is reasonable.

Maybe they increased by a copy because it is the holiday edition.  I’d accept if the base off of which they increased me was reasonable.  Seven is not a reasonable base, as the data shows.

So, is this evidence of oversupply by Gordon and Gotch?  I think so.  Should I be concerned?  Maybe not if it was just this one title in one of my newsagencies.  Newsagents reading this will know, however, that this does not happen for just one title and not just in their business.

Think about that for a moment.  One extra copy by 4,000 newsagents.  That’s a high cost to the channel.

Every single increase in supply of a magazine beyond what I could reasonably sell sucks cash, time and space from our businesses.  That it happens with consistency is, in my view, unconscionable.

The problem is that when newsagents complain about oversupply Gordon and Gotch they act as investigator, prosecutor, judge and jury.  They say that oversupply does not exist.

What do I want Gordon and Gotch to do?  Here’s a start…

  1. Let newsagents decide what trigger they want for an increase in supply.  I think supplying to avoid a sell out is nuts for many titles.  Some newsagents may like this.  I don’t.
  2. Make it easier for me to select the titles I range.
  3. Agree on compensation for titles which fall below an agreed performance threshold.  Say, 50%.  Newsagents should not have to fund warehousing this inventory.

I am not out to bully Gordon and Gotch as their CEO alleges.  No, I want a fair magazine distribution system, one which treats newsagents with economic respect.

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  1. Ian

    We received from Gotch and Pacific a IGA subagent supply revision in which they are increasing the supply of magazines on top of what we are already giving them even though we have returns each week of the magazines. For example New Idea we have to give them an extra 12 magazines – in the past few weeks they have returned 9, 6, 8, 5. Who has an increase of 10. Returns are 6, 4, 3, 4. Other magazines on the list are similar %returns. The list of increases is stupid. We go to this store each day to make sure that they do not run out of ANY titles. We will ring Gotch and try to explain but I think it will be unsuccessful

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  2. Kenzie

    I have just been doing some investigation into our magazines and was shell shocked when I ran an analysis on titles that have 80% return from the last 5 titles from Gotch. After 176 pages I was shocked by how many magazines that we recieved that we clearly dont sell but are still getting after 5 weeks. I went the hard way and went online to decrease supply or stop it. Lets see what happens. I did the same analysis on NET and sure a few over supplies but nothing compared to Gotch. I think it is an issue and no wonder why subagents do early returns!

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  3. Steven

    Always glad to see the hard evidence displayed on this blog.

    This morning I received 7 Lonely Planet Magazines, I only ever sell two a month max.

    Sick of their spin and BS supply.

    Glad you don’t let them keep you quiet Mark.

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  4. hz

    haha. I am reading this because I have just come into the back office armed with a stack of puzzle titles to TRY to reduce. I don’t mind the range, but because I have a goodly range, I DO NOT NEED an extra 3 of everything from BOTH GG and Network, it is killing us for money AND space. GRRRRRRR.

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  5. Paul

    Thomas & Friends. I normally receive 2 or 3 and maybe sell 1 a month . This morning I’ve received 10 !

    If they’re saying they haven’t oversupplied they are either outright lieing or have a major problem with how their system is working.

    I had a very interesting discussion with a lawyer at a poker game on Friday night who stated that their may well be legal means to seek compensation for the time and dollars spent in returning beyond what would be deemed “fair & reasonable” supply. Might have to investigate this further !

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  6. Jim

    Did anyone else get a heap of puzzle/crossword magazines this week?
    We have received 38 different titles over 3 deliveries, 31 from G&G and 7 from Network.
    The already generous space we allocate for these is now chockers as is the early return basket.

    I haven’t seen as much crap since the elephant ate the box of laxettes!

    Why, when there is an adequate supply of Australian titles, does G&G have to send so many imported titles to bolster an already over-catered category only to get them all back at month end?

    If this is not abuse of the channel, I will eat my hat but don’t they realise that gross over-supply = gross early returns. I guess it’s a game that entertains the allocations people who must have plenty of time on their hands because they certainly don’t spend any time analysing sales and return data.

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  7. MAX

    Jim,
    Ditto here. I have had to take any puzzle books with return weeks 5, 6 and 7 off the shelf to try and squeeze all the new ones in

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