I have spoken to a few people about the cutback in magazine distribution from three days a week to two to try and understand more about the move. While no one I spoke with is prepared to go on the record, here’s what they say about the move:
- Planning began long before Bauer purchased ACP and before the management changes at Gotch.
- Money is at the core of the cutback in distribution days – the profits of Gotch and Network.
- Gotch and Network have been on the same page, pursuing a reduction in days as a means of cutting their costs.
- The ANF was consulted – they were told magazine volume was declining while costs were fixed. Apparently they did not request data to confirm the accuracy of this assertion. Volume has not declined as much as the distributors claim.
- No discussion took place between the ANF and distributors about the impact on sales cycles in newsagents nor traffic flow on different days of the week.
- Plenty of magazine publishers, large and small, are unhappy with the move. Mid size and small publishers feel helpless because of what they call a magazine distribution duopoly.
- In deciding on Monday and Thursday, they had to choose days that worked with sales based replenishment (if they ever get it working) and provide a reasonable spread apart to serve the needs of the major weeklies on Monday and Who at the end of the week.
- The overall move and most other decisions have been taken to serve the needs of Gotch and Network.
Personally, I am not against the move necessarily. I understand that businesses need to cut costs. However, I remain concerned about the potential impact for newsagencies versus supermarkets.
On the need to cut costs – it disgusts me that Gotch and Network use this as their reason yet they do not provide newsagents with reasonable ability to achieve cost cutting in magazine supply. This move is another example of do what I say and I will stop you doing what I do.
I doubt we will ever hear what the distributors told the associations or what the associations told the distributors. I would not be surprised to find out that the associations did not raise the concerns you have raised Mark.
Like you, I am not against the move but I am concerned about what will happen between by shop and Woolworths nearby.
Just when do the associations conult us? There is such as thing as emails and surveys but I think the distributors would still do what they want. It will not impact on city newsagencies as much because they will still get mags on their busiest day – Thursday, but our customers in country areas come into townfrom 80 to 100k once a week on Thursdays and will not change that routine for a magazine company. I anticipate a big drop in weekly sales.
Carol I agree with you we are in the same situation. What agents did the ANF consult with if any. I doubt they did and now I wonder why I should be a member of an organisation that seems out of touch with its members in regional areas.
The way these things usually play is that they are presented to associations as a done deal. Little or no consultation. That said, the moment associations hear about it they should tell their constituency.
We should all at least email them and advise we are not happy. Monday & Wednesday would have worked fine for most I think. Just cut out Friday. Remote areas except for the very remote would get mags Tuesday, Thursday and the city folk would get them in good time as well. There may be a problem with some weekend publications but change they day they published.
On the suggestion of someone else here I’m going to load a quick survey – hopefully tomorrow.
Mark….I dont know the figures or sales that supermarkets have over australia and what numbers of magazines that they sell but has anything or anyone compared magazines sold buy newsagents australia wide with those sold by supermarkets…I know that they only sell the top 20 titles because that would be the only ones to make money but if we were a united front…would we be able to put pressure on the distributors to cut out supermarkets from our stock business or should we all start selling groceries. How many newsagents are there australia wide?