I have seen data which proves that some newsagents are returning some titles too soon in the on-sale period, thus driving sales on a downward spiral.
Newsagents I have spoken with say that publishers overloading them drives early returns.
Newsagent business data shows a different story. It shows, in the cases I have seen, that some newsagents returned stock less than half way through the on-sale and that they could have expected to sell at least two thirds of the stock they returned. Their early returns stopped them achieving sales their data history indicated would have been made. Early returns of these specific titles for which I have seen data cost these newsagents money.
Early returns based on gut feel can drive a self fulfilling prophecy. The newsagent thinks they are oversupplied and that stock will not sell based on what is on the shelf. Without reference to data they send the stock back early. They don’t have the stock to sell. Sales fall. Eventually the title dies in that newsagency.
Newsagents need to take care when early returning – make sure you are not losing sales. Check your sales history for a title before you make the move. Understand when in the sales cycle you sell a title before removing it early. Smart publishers provide access to data which helps newsagents – such as the data I was shown recently. I’d gladly put newsagents in touch with publishers who are proactive in this area if they are concerned about early returns.
Of course, magazine distributors can reduce early returns by supplying to achieve a 60% or better sell through for all titles and not just the top sellers. Newsagents who see a poor performing title have been known to hit back at this by early returning other titles. I can understand this from a cash management perspective. Magazine distributors often have only themselves to blame in such situations.
The other way publishers can reduce early returns is to supply 30 day stock. By this I mean, eliminate stock we are to hold for longer than 30 days. Many longer on-sale products are supplied in larger quantities to satisfy the selflife. Split the delivery and reduce the cash-flow strain on newsagents. There will be fewer early returns as a result.
Early returning because you have no space is a different story, one for another day because that is an industry problem.
Further to my last post, here is another aisle end from our newsagency in Frankston – promoting the May issue of Women’s Health. Again, the customer can purchase off of the display. Also, the display covers the older magazine fixtures and gives the shop a brighter feel. I appreciate that some will argue that we should be paid extra for this in-store work. maybe we should. In the meantime we will continue to boldly display marketing collateral for titles which we know will respond to such in-store effort. Women’s Health is one such title. Every time we create a bold in-store display, sales lift.
