Given the discussion here this week on the magazine distribution model, I have been re-reading my 2006 report – THE CASH-FLOW IMPACT OF MAGAZINES IN AUSTRALIAN NEWSAGENCIES.
I am considering doing this study again, probably in the December / January. I think it is time to update the data on this part of the magazine model.
It’s easy to get sell through data from any newsagency.This cash-flow study approach takes it is a deeper level. I harvest retail space and labour costs down to the title level. This enables me to assess the cash-flow impact at the title level.
Just because a title is cash-flow negative does not mean it should be cut. However, it does mean there must be another reason for the title being supported.
Given the nature of the study, I’ll need to pull the data from within the 1,800 or so newsagents using the Tower Systems newsagency software as this has a magazine cash flow data harvesting and reporting facility build in.
Once I have the data it takes a couple of months checking it and doing the analysis.
Mark, seriously…..if a product has a negative cash flow, it doesnt neceesarily mean it should be cut. You will have to explain what you mean by this.
To get even close to 25% gp on mags means that they hace to be managed to within an inch of their lives. Carrying non performing stock is only making that task harder
James, it could be that a title or titles provide credibility in a category for which we offer other, more profitable, products. My point is that there could be more to consider than cash-flow impact and profitability alone.
I am not sure if any other studies are done like this, as I am not a member of any association and therefore not privy to what is availiable. I recently received an email invite from ANF, would join if all for one and one for all.
I think we need information like this, much more for moving forward so everyone makes money and provide a positive point of difference and magazine guidance.
Would you consider or will this study also include a Monthly Supply versus Sales element preferably by Distrubutor? Not much to ask I know.
Derek any newsagent using the Tower software can get the cash flow report and the magazine distributor performance comparison report you’d like already.
I see. very valuable. Overall in your opinion is the Gap closing. I can say that in my case Supply v’s Sales has never been better, however I am not a Newsagency Specialist.
Anybody notice how few magazines we are now receiving on a Friday. It seems to have flowed on from the week when Who came in early.
Not sure if this is a trend but I would not be surprised if we stopped getting Friday deliveries. Logistically it would be easier to put them all on trucks on a Wednesday, just need local publishers to fall into line…