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Q: Grocery Stores ( Answered 5 out of 5 stars,   1 Comment )
Question  
Subject: Grocery Stores
Category: Business and Money > Small Businesses
Asked by: standardcraig-ga
List Price: $20.00
Posted: 05 May 2004 02:09 PDT
Expires: 04 Jun 2004 02:09 PDT
Question ID: 341344
Do magazines that you find for sale at 7-Eleven, Vons, and the like
come through the mail to the stores or are they stocked by stockers
paid for by the magazines? Also, how does one get their magazine
featured in a grocery store?
Answer  
Subject: Re: Grocery Stores
Answered By: easterangel-ga on 05 May 2004 05:14 PDT
Rated:5 out of 5 stars
 
Hi! Thanks for an interesting question.

Magazines are usually sold in two ways. One way is by subscription,
these are the ones that go through the mail and arrive at your home.
Another way is by direct delivery in bulk by wholesalers and
distributors themselves (usually via trucks) to newsstands and grocery
stores, we call this type of selling as ?single-copy sales?.

So if you want to sell through grocery stores you have to take the following steps.

1. Publish your magazine
2. Contact a wholesaler or distributor to sell them to convenience
store establishments like groceries and supermarkets.
3. The grocery will then sell your magazine.


?For years, distributing magazines was a simple, though inefficient,
business: Most cities had one wholesaler delivering new issues and
picking up old ones. The retailer, the wholesaler and the publisher
each got a cut from every magazine sold; unsold copies went back to
the publisher. With so little downside, wholesalers were willing to
put just about any title on store shelves. Retailers were happy to
oblige.?

However some market changes are being made that is putting pressure on
distributors and wholesalers.

?But about 2 1/2 years ago, all that began to change. Safeway Inc., a
large supermarket chain based in Pleasanton, Calif., told wholesalers
in several Northwestern states that it would stop awarding contracts
to single-city wholesalers, and it opened several large regions to
competitive bidding. Other big retailers followed suit. Wholesalers,
to meet the demand, could either expand or die. The result: The number
of independent distributors has plunged to about 60 now from about 180
in 1995, and the number continues to slide.?

?But what has been a boon for retailers is becoming the bane of
publishers. Most fear a profit squeeze as wholesalers demand better
terms to compensate for the richer deals they have given retailers.
More alarming, perhaps, would-be publishers and publishers of small
magazines fear that they won't have a place on store shelves as
wholesalers focus on best-selling magazines.?

?How Magazines Make It to Stores?
http://www.xent.com/FoRK-archive/feb98/0436.html 


?Until 1995, individual magazine wholesalers maintained
near-monopolies in each city, meaning a large drug store chain was
forced to work with more than 100 wholesalers nationwide. As
retailers-led by supermarkets, such as Safeway, and mass
merchandisers, such as Wal-Mart-began focusing on improving
efficiencies in the long-underappreciated magazine category, one of
their first moves was to demand wholesalers compete with each other
for national or large regional contracts. This streamlined the process
significantly; Walgreens, for example, went from 100 wholesalers in
1995 to six today, according to spokesperson Yvette Venable.?

?Retail sales of magazines have continued to grow despite the
upheaval. The New York trade association Magazine Publishers of
America said single-copy sales reached $4.5 billion in 1997, up from
$4.1 billion in 1995, and are responsible for 18 percent of total
magazine sales. Drug stores accounted for 9.7 percent of all
single-copy sales, or $438 million, in 1997, reported Harrington. In
1995, the channel's share was 9.6 percent, or $390 million, up from
7.9 percent, or $293 million, in 1993.?

?Health magazine is one example of a publication that has witnessed
sales increases in the drug store channel. The initially
all-subscription periodical has seen newsstand sales rise 90 percent
over the past three years, said publisher Mary Morgan, with much of
that fueled by drug stores. ?It's an extremely important channel for
us,? Morgan said.?

?Wholesaling revolution increases magazines' profile?
http://www.findarticles.com/cf_dls/m3374/1998_Oct_19/53159019/print.jhtml 


If you will sell to grocery stores then you are dealing with the
industry lingo known as ?single-copy sales?. According to insiders, it
isn?t really that profitable and your revenues will still mainly come
from mail subscriptions.

?Single-copy sales are rarely a money-making venture. In fact, many
large commercial magazines knowingly take a loss on newsstand sales
because these sales increase their paid circulation figures and allow
them to charge higher rates for space advertising.?

But there are additional benefits for having a presence in newsstands
and grocery stores. By being visible in stores, you can attract more
subscribers and also get additional promotion.

?With this said, even though your newsstand sales probably aren't a
major source of earned income, they are still worthwhile. "Visibility"
is a fundamental asset to any magazine.?

?An often overlooked component of successful single-copy sales is
"newsstand friendliness." For retail purposes, a magazine's cover is
the best selling tool it's got.?


Aside from using distributors and wholesalers, here are other ways to
sell to retail establishments like grocery and book stores.

?There are other methods of selling single copies. In addition to
working with distributors, many magazines promote directly to
bookstores (sometimes in person!). This direct approach seems to work
especially well for regional magazines and genre magazines that can
easily target appropriate retailers.?

The link below also mentions what things you may have to watch out
when you are working with distributors. You must have an understanding
on how they will operate. The article also says that there is a wealth
of information you can use from your distributor reports so you better
read and study them carefully.

?Why doesn't my magazine make money through single-copy sales, even
with healthy sell-through rates? How can I increase single copy
sales??
http://www.clmp.org/faq/publ_faq_sales_0010.html 


If you are ready and willing to work with distributors and
wholesalers, then our next link provides a list of such firms together
with their contact information. The same link also takes note of the
difference between a wholesaler and distributor.

?A wholesaler?s responsibility is to the stores and libraries it
serves. It will take orders and stock books, but it does not create a
demand for those books. A distributor, on the other hand, will not
only take and fill orders but uses sales representatives for their
accounts and creates a demand for the books it represents. In this
regard, a distributor?s primary responsibility is to the publisher.?


In this case, a distributor might be a better fit for your needs. A
good tip to find a distributor appropriate for your magazine is shown
below.

?When starting to look for a distributor, or perhaps to change
distributors, the first step should be talking to other presses or
magazines which are similar to your own in staff size, budget size,
circulation/list size and focus. Find out who they are working with
and whether or not they are happy with the service they are
receiving.?

?Distributors and Wholesalers?
http://www.clmp.org/resources/wholesalers.html 


Search terms used:  
"SINGLE-COPY SALES" magazines
"magazine distribution" convenience stores
magazine distributors wholesalers

I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
                             
Thanks for visiting us.                              
                              
Regards,                              
Easterangel-ga                              
Google Answers Researcher

Request for Answer Clarification by standardcraig-ga on 05 May 2004 17:57 PDT
Do you know how the auto trader works? Do they have a team that speaks
with stores and arranges for their magazine to be featured in the
stores? Then do they have their own team that goes around and replaces
the magazines every week? Just wondering, this would clear everything
up.

Clarification of Answer by easterangel-ga on 05 May 2004 18:16 PDT
Hi!

Based on your original query above, I have already answered your
question. But I'll still try to help you with this.

First of all... is this the magazine you're talking about? 

http://www.autotrader.co.uk/common/about/about-magazines.jsp

If they are just a publisher then it is highly possible (unless they
also have a distribution firm) that they are in contact with a
distribution company since they will not have the extensive sales arm
to offer these to stores and also the logistics to deliver and also to
reacquire the unsold units.

Thanks!

Clarification of Answer by easterangel-ga on 05 May 2004 20:23 PDT
Hi again standardcraig-ga! Thanks for the 5 stars! :)

While researching for your new question, I came across another
resource that could be of interest to you.

"Currently, the wholesaler, as a reseller, negotiates terms with the
retailer and arranges certain marketing programs. At the same time,
the publisher also negotiates some marketing components with the
retailer."

"In the current system, where the wholesaler is paid as a reseller,
the fee earned by the wholesaler is based on the cover prices of
magazines and the number of copies sold. The wholesaler has a major
marketing role, but both the publisher and the national distributor
also market the product
to the retailer."

"SINGLE COPY MAGAZINE DISTRIBUTION FOR THE 21ST CENTURY"
http://www.magazine.org/content/Files/Single%20Copy%20Distribution%20Feasibility%20Study.pdf

Thanks!
standardcraig-ga rated this answer:5 out of 5 stars

Comments  
Subject: Re: Grocery Stores
From: neilzero-ga on 05 May 2004 18:50 PDT
 
Very interesting. In the case of very isolated stores, I presume the
magazines are sometimes sent by the publisher distributor or
wholesaler by mail, USP or Fedex.
 Do some of the distributors also handle some of  the free magazines
and brochers?  Neil

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