Why you won’t find Singletrack in ASDA
Thursday, July 31st, 2008Seems Asda need us super cash rich magazines to help make them more profit? according to this email sent by ASDA to all magazine distributors.
So, assuming you have just read that lets recap..
ASDA, as a retailer in the newstrade already gets the following from us magazine publishers…
- 25% of cover price on full no risk sale or return*
- Magazine’s delivered to stores at our cost
- Unsold copies are binned - not returned
*We get 52% the rest goes to our distributor, Warners Group Publications
That seems a pretty good deal to me already. Now a 25% margin is not bad but in retail terms it’s not that great but then this is all Sale or Return, meaning they only pay for what they sell and any mags that are left on the shelves when the new issue is ready just get binned and they don’t have to pay for them. This whole system is the reason why there is such a disgusting amount of waste in the magazine publishing business. Have a look at our plans for trying to do something about our own contribution here.
So despite the fact we have to print 25,000 copies of Singletrack to sell 16,000 with the rest going to waste, ASDA now want to have the option to have a Double Page Spread (DPS) ad in Singletrack; they want us to pay £2450 just to be allowed to sit on their shelves; they want our distributor to pay up £10k for the priviledge of supplying them at all; they want publishers to pay for in-store promotions every month; they want sales forecasts set and if they are not met, they want to be compensated for the difference; and incredibly they want a 2% bonus to be paid to them based on the total turnover of every magazine on their shelves and this bonus is to be backdated to 1st January 2008!
I’m staggered and I have one thing to say to ASDA…
Fuck Off!



