I have been talking to some magazine publishers recently about different sales models, in pursuit of more economic terms for newsagents than the current sale or return system controlled by Australia’s three magazine distributors.
The contact usually comes in the form of a question: which magazine distributor is recommended by newsagents?
This question is more complex than it sounds and is not one I am comfortable answering without knowing more about what the publisher wants to achieve by getting their magazine in to newsagencies. Some publishers want to be in front of browsers in newsagencies. Others want sales to drive subscription uptake. Others want real sales and to develop a long-term mutually beneficial relationship with newsagents.
It is this third category of publisher I am most interested in as they are more likely to invest in the newsagency channel and reward our investment in their titles.
It is clear that there are some independent publishers looking for an alternative which provides them with more direct to newsagent contact. They are usually open to a direct supply relationship on a sale or return basis for a better than usual margin a firm sale arrangement for an even better margin.
That some independent publishers are looking for alternatives which better suit their business model is good for newsagents. Our goals and the goals of publishers ought to be more closely aligned than the goals of the magazine distributors. This is not a criticism, just an acknowledgement of the services they are paid to provide.
Reducing the supply chain will cut costs and leave more money on the table for newsagents and publishers.
The question is whether an independent publisher is willing to break the system and try a evolve a direct to newsagent model. I am certain there are newsagents who would be willing to try this.
