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David D  
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 More options Oct 24 2006, 10:11 pm
Newsgroups: alt.zines
From: "David D" <netr...@yahoo.com>
Date: 24 Oct 2006 19:11:57 -0700
Local: Tues, Oct 24 2006 10:11 pm
Subject: magazine distribution questions...
A couple of questions:

1)Is it possible to get a magazine distributor to guarantee copies to
be sold sight unseen?  For example if there was a 1,000,000 copies
being printed, can the distributor make a claim that magazine will be
sold even before it is out in stores?
2) What happens to magazine when they don't get sold?  Do they get sent
back to the publisher?  The distributor?  OR the store?

Thanks in advance...


 
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clint  
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 More options Oct 24 2006, 11:26 pm
Newsgroups: alt.zines
From: "clint" <cjo...@towerrecords.com>
Date: 24 Oct 2006 20:26:57 -0700
Local: Tues, Oct 24 2006 11:26 pm
Subject: Re: magazine distribution questions...
Hi David-

> 1)Is it possible to get a magazine distributor to guarantee copies to
> be sold sight unseen?  For example if there was a 1,000,000 copies
> being printed, can the distributor make a claim that magazine will be
> sold even before it is out in stores?
> 2) What happens to magazine when they don't get sold?  Do they get sent
> back to the publisher?  The distributor?  OR the store?

Keep in mind that I'm telling you about the bigger distributors, since
I think that's what you asked about; there are tons of little indy
distributors who have a plethora of policies, but in general, this is
what happens on a 1,000,000 copy-type scale.  This may be WAY more
detail than you care about.

To answer your question about guaranteed sales... I guess it depends on
who they're making the claim to.  If it's your magazine, and they're
making it to *you*, you're probably being scammed- at the very least
they're exaggerating.  There will always be returns, and consider that
the national average sale for magazines is only about 38%.  38%!  That
means that of those 1,000,000 copies you're talking about, 620,000 are
likely to be chucked in some way.  Of course, that's an average, and
many magazines sell better than that- and many sell worse, which brings
that average down to its current miserable level.  In addition, the
average varies by industry.  If you only include "specialty retailers"
like Borders or Barnes & Noble, the average sale goes up to 55-60%,
depending on who you're getting your figures from.  It's still an awful
lot of waste.  But I'll tell you this: even when a big magazine is
selling like crazy, because Demi Moore is naked on the cover, or the
first pictures of Brad and Angelina's baby are inside, there are always
returns, due to copies that arrive damaged, or get shopworn, etc.

And I think there are lots of people, including people hereabouts, who
may have been told that their mag/zine was going to sell great, just
GREAT- and then the returns came in.  This is tied to the returns
process.

What happens to magazines when they don't get sold also depends on what
industry you're talking about.  The vast majority of magazines- those
sold in grocery stores, liquor stores, drugstores, that kind of thing-
are dropped off and picked up by a local wholesaler, so they take away
the whole thing.  They then take them back to their warehouses, where
they're scanned and then pulped, and the number unsold is reported to
the publisher- and deducted from the publisher's check.  Specialty
retailers usually only have to return the cover to their "national
distributor."  They can do this because they promise to "destroy" the
magazine that remains, which usually means they make sure they get into
a dumpster out back of the store.  (The same thing happens with a lot
of paperback books, incidentally.)  The reason here is that everyone
(outside of the local wholesalers, that is) has figured out that
magazines are cheap to sell, so you're not making a whole lot of money
on an individual magazine, but relatively heavy, and consequently
expensive to ship (especially if you're driving them around, like the
local wholesalers do).  So the national distributors tally up all the
returned covers, and then report the number unsold to the publisher,
and deduct from the publishers check.  (And by the way, the local
wholesalers probably *do* know that it's not a terrific idea to have
their own people, in their own breaking-down, aging, gas guzzling
delivery trucks, tooling around and stocking magazines.  But the people
they're selling to are paying a premium to not have to touch those
things- they just buy the shelves and make the money.  Specialty
retailers actually have employees who do this, so they get a bigger cut
of the profits, and get their magazines shipped to them.)

AND: most of the time retailers have up to 90 days after a magazine
goes off-sale to eturn it, which means that those returns keep
trickling in.  The distributor will deduct when they get the first
batch, and then again as more returns report, and then again as more
returns report.  It can be kind of alarming, especially to new
publishers, who would like a clean, "okay, all the returns are in, and
here's what we owe" experience.  You can have that- but it means you
have to wait a LONG time for your check as the distros wait for ALL the
possible returns to come in.  Oh, and did I mention that the publishers
get charged for all the covers that get counted?  That gets deducted
from the paycheck, too.

The only people who ever give publishers unsold copies back are small
distros, usually zine distros, and I'm not even sure that's common.
And then there are some distributors who'll just buy everything
outright, no returns.  Diamond Comics is the biggest outfit that does
this, btu a lot of zine people do, too.  The tradeoff for getting a
paycheck and not worrying about sales or returns is that you get a MUCH
smaller piece of the action, since the distributor assumes all the
risk.

I hope that answers your questions-

clint


 
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David D  
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 More options Oct 25 2006, 7:11 am
Newsgroups: alt.zines
From: "David D" <netr...@yahoo.com>
Date: 25 Oct 2006 04:11:40 -0700
Local: Wed, Oct 25 2006 7:11 am
Subject: Re: magazine distribution questions...
Thank you Clint for such a thorough reply.
I was just wondering because having seen the circulation for let say
rolling stone magazine (I think it was 1.5 million), I thought it was
odd to hear that a NEW magazine would have a guarantee of  sales.  But
what you are telling me is that it always comes back to the publisher
if magazine are not sold (unless the are with a big company that will
assume the risk - btw, why would a big company assume the risk?)


 
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bob  
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 More options Oct 25 2006, 9:52 am
Newsgroups: alt.zines
From: "bob" <shea...@hotmail.com>
Date: 25 Oct 2006 06:52:28 -0700
Local: Wed, Oct 25 2006 9:52 am
Subject: Re: magazine distribution questions...
Hey David,

I don't want to speak for Clint -- as he is the de-facto godfather of
indy pubs at this point -- but what I think he was saying is that it's
more likely that a publisher will get either just covers back (not
whole magazines) or will not get anything back, just a report from the
"middleman distributor".

Remember, Clint is talking about three different parties when talking
about larger publications: the publisher, a distributor, and a
retailer.

And I think the reason that distributors assume the risk when buying
mags outright, is that there's money to be made. So, instead of paying
50% of the cover price per issue, they may only pay 30%. When dealing
with a distributor that can give you cash upfront terms, you tend to do
whatever they ask of you, since it's better to have a dollar in your
hand than a promise of two dollars tomorrow.

As for Rolling Stone's circulation numbers -- keep in mind that
magazines lie about such things so that they can charge more for ads.

And anyone who guarantees sales in ANY industry, publications or
otherwise, is pulling a fast one on you.

Bob
www.njghost.com


 
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David D  
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 More options Oct 25 2006, 2:57 pm
Newsgroups: alt.zines
From: "David D" <netr...@yahoo.com>
Date: 25 Oct 2006 11:57:56 -0700
Local: Wed, Oct 25 2006 2:57 pm
Subject: Re: magazine distribution questions...
I was told that out of 1,000,000 copies, that 600,000 were guaranteed
to be sold in 150,000 store - now whether that means something that I
am miscomprehending, I am not sure.  I am going to phone the company
today to clarify.
I find it hard to believe an unknown magazine, 1st issue ever would get
that kind of coverage, but I guess you never know...


 
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clint  
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 More options Oct 25 2006, 10:20 pm
Newsgroups: alt.zines
From: "clint" <cjo...@towerrecords.com>
Date: 25 Oct 2006 19:20:06 -0700
Local: Wed, Oct 25 2006 10:20 pm
Subject: Re: magazine distribution questions...
Bob's right- I don't know of anyone these days that even gives the
covers back, as proof that something actually wasn't sold.  (When Tower
did returns, we did that, unless the publisher said that they trusted
us just to give them a sales report.)  So most just get a piece of
paper saying, "We recorded this many returns."  No verification, no
nada, and the pubs just have to trust that the distributors are honest,
and entered all the information into their database correctly.

And Bob's also right about the non-returnable thing: the only time that
ever happens, the distributor takes a BIG bite of the profits, because
the distributor is assuming more risk.  Another reason a distributor
might do this is that they may only SELL the stuff they buy to
retailers on a non-returnable basis.  When this happens, the retailer
usually wants a bigger discount, too, since now they're also assuming
more risk.  (As an aside, Diamond Comics operates this way; they buy
non-returnable, and then they sell to all the comic book stores in the
land (and other places besides) on a non-returnable basis.  If you ask
me it's a much better way to do business, since shipments get paid for
immediately, and it forces *everyone* to pay attention and not overbuy,
to really make sure that they're striking a good balance between what
they sell and what they throw away- because remember that there are
ALWAYS returns, and if you buy 10 copies of The Inner Swine
non-returnable, you may sell 8 of them... but two get chucked.  Or they
sit on the shelves, lonely and collecting dust, until See Hear finally
goes under.)

One thing that hadn't occurred to me- you asked about sales, but I
didn't think about circulation.  Circulation *also* includes all
subscriptions.  Rolling Stone, based on their month-to-month sales
nationally, are able to make a pretty solid prediction of what their
average sale is.  Add the subsciptions, and you get circulation.  And
what you also get is the number they use to charge their advertisers
money.  THAT is a situation where someone would guarantee a certain
number of copies sold, for sure; the higher the ciruclation, the more
they charge Sony to include an ad for the new Michael Jackson record.
The Audit Bureau of Circulation (or something like that; the acronym is
ABC) verifies ciruclation on an annual basis for all the big mags, so
that advertisers know that they're not getting rooked.  If ABC came
back and said that Rolling Stone was actually only selling 1.4 million
copies, and subscriptions were constant, then it would be store sales
that were dropping.  But wherever the loss came from, RS would have to
make it right with their advertisers, by cutting their future rates,
and perhaps giving them some free space or a rebate besides.)

Which means that Bob's right again- anytime any guarantees sales in any
industry, a fast one is probably in the offing.  That is called
"advertising".  Yahoo!

clint

p.s. And I don't know about the godfather thing- I think I'd still give
that title to Doug Biggert, who started Tower Mag Hell and ran it for
nearly 20 years.  He's still buying indy stuff- just for a single
newsstand where he moonlights between fixing toilets (or so his last
postcard said) and working at a used vinyl record store (the same one
where Dj Shadow spends so much time!).  In fact, Tom H. has a better
claim to that title than I do, based purely on the sheer number of
zines he's touched, read, reviewed, produced, etc. over the years.  I
do know some stuff, though...

...

read more »


 
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