Let us consider the flow of magazines though the newsagency industry.
I am the magazine producer. I make the magazine. I have a pile of returned magazines. What do I do? Do I pulp the magazines get nothing or do I reissue them? Since I already have the magazines I don’t need to write or print anything. It costs me little to distributing them in comparison to the cover price magazine. So reissuing them as long as I get minimal sales is money for nothing. Reissuing will also give me the added advantage of boosting my circulation figures so helping me sell more advertising space. From a business view, what am I doing wrong?
Say I was the magazine distributor for example GG; I am getting paid to deliver them. My accountants have costed it out. My computers are monitoring them at all times. If they don’t sell later well I will get a fee from the magazine producer to pick up the unsold ones from the newsagent. So I am covered. About a month later I will credit the newsagent. I am doing what a distributor was made to do deal out magazines so from a business view, what am I doing wrong?
Say I was the newsagent. I get a pile of those reissued magazines. They are lousy seller. I pay for them immediately. They will take up valuable shelf room. I also need electricity to display them and staff to look after them. Even if they don’t sell unfortunately some will be shoplifted. Later when it is time to do returns, some are misplaced so I will miss a few returns too. I then get the credit for them in a month’s time.
So from a business view, which one is doing something wrong?
To me it is clear the bad businessperson here is the newsagent who either has not got computer system they need or they are not using it properly.