Smiths News launches new initiative to help boost customer profits
Leading national magazine and newspaper wholesaler, Smiths News, is helping its independent customers make the most of their cash flow with the launch of a new initiative that allows them to defer payments for collectable deliveries until four weeks after receipt.
Generating more than £40m in retail sales value per year, the collectables market often includes stickers, trading cards, special toys and other widely collected items. It plays a key role in driving sales of magazines and newspapers, with many publishers often running promotional campaigns such as free sampling offers through national publications in line with popular sporting events or the launch of new TV programmes or blockbuster movies
Collectables offer a great opportunity for newspaper and magazine retailers to supplement their profits by providing another avenue for generating sales. For example, customers tend to buy more than one packet of stickers at a time and often come back to a store time and time again if they know a particular collection will be stocked. However, where retailers often run into problems, is where a product line doesn’t sell as well as expected, leading to vast amounts of wasted stock which ultimately has a damaging effect on cash flow.
However, as Jonathan Bunting, Chief Executive Officer at leading logistics specialist Connect Group, which owns Smiths News explains, collectables can also pose a risk to the cash flow of small independent magazine and newspaper retailers:
“Our new initiative means our customers can sell collectable lines in their store risk-free as they’ll have the opportunity to sample products and see if they are popular with their consumers over a four-week period allowing them to make well-informed decisions about whether that product is right for them. This will ultimately give customers the opportunity to take advantage of key selling periods when promotional activity and awareness campaigns will be at their highest and demand will be at its greatest."
“We are always looking for ways we can help our customers get the most out of their businesses. In such a fast-paced industry where profit margins can often make or break a company, it’s solutions such as this that really can make all the difference.”