Australian Newsagency Blog

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Gotch and XchangeIT fail newsagents, again

Mark Fletcher
November 10th, 2017 · 7 Comments

Gotch, not content with its broken magazine distribution business, has branched out into supplying gift related product to newsagents. Some of the products have suggested retail prices that are higher than supplier suggested retail, giving an inaccurate impression of margin.

XchangeIT has sent out a invoice file from Gotch for this new gift product venture that is riddled with errors. The experts at XchangeIT were clueless about the file they sent. They had not checked it.

An expert at my newsagency software company checked the file and listed for XchangeIT the problems in the data from Gotch that they sent through their facility. This was done because XchangeIT people were too lazy to do they work they should have done.

XchangeIT take a big stick to newsagents on compliance yet appear to accept no responsibility for their own lack of compliance.

XchangeIT has one job. They failed.

Gotch should have one job – distributing magazines based on what will certainly sell. They fail weekly.

People in both companies will be angry that I am writing this, they will have their excuses. In  my opinion, the excuses will be baseless.

If Gotch has the time and money for a new venture they have the time and money to stop gross oversupply and to stop the distribution errors that cost newsagents a ton of money.

If XchangeIT can send out a data file riddled with errors and that they have not tested they have no right penalising newsagents on their compliance.

22 likes

Category: Ethics · magazine distribution · Magazine oversupply · Newsagency management · Ugh!

7 responses so far ↓

  • 1 Colin, Malvern SA // Nov 10, 2017 at 10:55 PM

    It was immediately apparent to me that the RRP for products were overstated. I hope others were not sucked in.

    0 likes

  • 2 John // Nov 13, 2017 at 2:56 PM

    one of my regular customers, used to work for gotch for 10 years. told me how it was common and known practice to load up newsagents with mags. He laughed about how they did it and got away with it.

    1 likes

  • 3 Joe // Nov 13, 2017 at 7:43 PM

    IMHO – They should stick to doing one thing right not trying to branch out to gifts. This is unique to each business, location and customer…..

    1 likes

  • 4 Paul S // Nov 14, 2017 at 7:36 PM

    John, thats not the first time I’ve heard that from an ex employee. I was told by one that they HAVE to allocate upto a certain percentage of any item regardless of past sales histories which is why we are often overloaded with usually useless stock amounts.

    BTW, has anyone else noticed that the Calendars and certain other items from gotch this Christmas don’t have a delayed billing date as long as they have been in previous years ? Quite a bit falls due this month meaning it will be payable on the December invoice when its previously run an extra month. Will be doing a big G&G sweep of unsolds next week. 😉

    0 likes

  • 5 Paul S // Nov 17, 2017 at 7:04 PM

    And have a look at all of the Journals that are arriving on Monday !
    I’ve already marked all for early return and will be topping and binnng the rest regardless of their full return status.

    0 likes

  • 6 Jeff // Nov 18, 2017 at 7:35 AM

    Journals in the bin

    0 likes

  • 7 Mark Fletcher // Nov 18, 2017 at 9:26 AM

    In the journal space, unless it is a traffic generating licence, 50% GP is what is required. This can be achieved by purchasing outside the magazine distribution channel.

    0 likes

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