We sold out of the December 2012 issue of Puzzler 125 Crosswords was. network responded by increasing us from 7 copies to 8. While they have their reasons, the sales data does not support it as I am happy to sell out of a magazine late in the on-sale – note that publishers please! However, that is not the reason for this blog post. No, on the back of no sell outs since the December 2012 issue, Network Services has increased my supply of Puzzler 125 Crosswords to 9 copies.
Okay it is only one copy more you might say, big deal. The sales data indicates that supply should have gone the other way – back to 7 copies. That’s if network Services was providing the professional magazine distribution services it claims to provide.
No wonder more newsagents are cutting magazine space as a way of taking more control over magazine supply.
I was talking to a journalist last week who is contemplating writing about the magazine retail channels in Australia. He was surprised to hear now newsagents are treated differently to our competitors and that we have no control over the titles we receive and the volume of each title we receive and that our competitors do have this control. He asked how can that be? Welcome to the unjust and unfair magazine distribution model that is structured to make newsagents less economically viable that other retail channels. It’s holding us back and will ultimately account for many newsagents exiting magazines.
Bauer owns Network Services. Bauer management participates in discussions with other publishers on the future of our channel. They say they care about the newsagency channel yet our oversupply continues. The best move Bauer can make to support a healthy and profitable newsagency channel would be to get to the heard of the Network Services supply model that sees my supply of of Puzzler 125 Crosswords increase by one copy on the back of no supporting sales data. Stop this oversupply creep and you will instantly improve the financial health of newsagency businesses and stop some newsagents looking at how to retreat from magazines.
Bauer is in a better position than any other magazine publisher in Australia to address this. For years, under ACP ownership, they ignored the opportunity. If they do not provide newsagents with the same magazine supply controls afforded to our competitors soon more newsagents will leave the category.
This is a serious issue, one for which there is excellent data supporting the need for urgent attention and supporting my position that gross oversupply of magazines occurs harming newsagency businesses, making us less competitive. Every publisher who wants a strong newsagency channel will call for action on this. If you are a publisher – what are you doing about it?
Click on the image to see the supply and return data for yourself.
Here’s what retail newsagents need from magazine distributors Network Services and Gordon & Gotch to enable us to compete with supermarkets, petrol and convenience:
- Scale out based on sales data – you don’t ship all copies provided unless the sales data warrants it.
- Increase or decrease in supply only if we approve.
- Add a new title only if we approve.
- Top only returns.
There are other things I could put on the list, as I have done before, but I wanted to keep this simple. This list of four items is easy for you. Technology could make steps 2 and 3 easy for us and you.
Our competitors have these benefits already. That newsagents do not makes us less competitive and less profitable.
Yeah its a brilliant allocation system Network’s got going there. The Picture has risen in price this week so they’ve nearly doubled my allocation. I must be stupid not to realise I’m going to sell twice as much now the price has increased.
The picture had a price rise ? Will have to check when I get back to the shop , didn’t know about that one
Shauns
Sorry its actually People Magazine 4.80 to 4.95.People / Picture I always confuse them, still same distributor still near on doubled my allocation.
Still I didn’t,t know about the people mag ,subbys will be spewing with me when they find out so now I will have to do a ring around
If you go online with Network to adjust your supply from for arguments sake 9 copies to 5 they will likely tell you the recommended supply is 6 so despite their own system calculation they have an oversupply of 3.
Then try to get adequate supply of part works and it works the opposite way. If they short supply it appears that they adjust supply down to the short supplied quantity as that was all you could sell and they ignore back ordered quantities.
They do not seem to be in the business of helping our sales ands ultimately this must be bad for the industry.
I guess they like supermarkets better because they get firm sale?
h, as far as i can see at woolies beside me they do returns so i don’t think they are firm sale ,i often see them topping mags
h, The major supermarkets don’t get firm sale. What they do get is either no returns or tops only returns.
Don’t forget they also get to say WHICH MAGS THEY WANT AND HOW MANY.
I’ve been to Melbourne to the gift fair over the weekend and it is galling to call into
the Newslink stores and see what they keep in Mags (Aussie mags only) when we
have overseas mags dumped on us all the time with no redress except to return them and pay for them before they are credited back to us.
It is the single most important problem with mags and I agree with Mark, that if
it is not changed ASAP more newsagencies will fall over (maybe they are
hoping that will happen so that they can then concur that their “other” outlets e.g.
supermarikets are the superior retail outlets for their product).
They obviously have no commitment to us at all and it is galling.
Once again I believe that the ANF has failed
its members (and all newsagents) with their buddy-buddy attitude towards the distributors instead of holding to their mission statement which is to look after our industry and the newsagents’ investment in that industry.
It reminds me of the Doctors who worship
at the alter of drug companies.
Similar analogy – similar outcome.
With regards to overseas magazines these maybe the only thing the seperates us from the woolies of the world when it come to magazines .The only thing is i wish they where a product supplied as we order them and not dumped on us .
Current Allocation 6 copies
New Base 2 copies
Number of Issues 4
Reason Other (please specify)
Message OVERSUPPLY
You’ve requested a new Base Allocation of 2 copies.
This falls outside the range for automatic approval.
The recommended value is 4 copies
You may still request 2 copies; Customer Service will review and respond via email.
Again, their own system recommends 4 copies but their original supply was 6.
Blatant oversupply? And this happens to a number of magazines each time I download deliveries.