One of the biggest problems newsagents have in managing magazines is cash flow– having to pay for all the magazines received when only half will sell and then carrying that debt until the magazines are recalled.
One way to manage cash flow and still have the chance to sell magazines is to take advantage of delayed billing.
The publishers offer to delay billing for two or three months and hopefully the newsagents can sell the magazines in the meantime – thus resolving the cash flow problem for the newsagent.
Why then do some newsagents refuse to take these titles and early return them anyway? Why is this not a win? Selling the magazines before you pay for them is surely sound retailing.
I would love to hear your comments on delayed billing. Tell me more…