Numbers don’t lie…wholesalers take a second look
August 14, 2007The Audit Bureau of Circulation numbers for the last six month are out and they provide yet another reason why wholesalers should reconsider their decision on how they want to handle the low-priced magazines they distribute or plan not to distribute. The three high-priced celebrity weeklies all witnessed a decline in single copy sales. People down 5.6%, Us Weekly down 3.4% and Star down 3.5%. On the other hand the so called low-priced celebrity weeklies witnessed yet another surge in single copy sales. OK weekly, that prides itself right on the cover that it is 50 cents less than Us Weekly, increased its single copy sales for the last six months period by 25.3%, In Touch up 10.6% and Life & Style up 6.8%.
Needless to say that there is an audience, big audience for single copy sales for the low-priced magazines; an audience that is responsible for bringing people to the check out counters to buy those magazines. I wonder if the wholesalers decided to stop distributing those titles what would replace them on the check out counters? Candy bars or chewing gum? Another sad day in the magazine distribution world.
Mr. Magazine 
As a former wholesaler employee, I recall when comics were 10¢, then 15¢, then a Quarter, etc., The National Enquirer and other tabloids were 25¢. Wholesalers were happy to handle them.
Cover prices have outstripped cost inflation. I question the model that says ±$2.00 (or thereabouts) is a break-even point today. But I’m no longer “in the business” – so what do I know?
One of the then sages of the ID community told me it was “a business of pennies – that combine into dollars”. He drove a Caddy, played a lot of golf, and owned a pretty big boat! He loved to gamble; so maybe that’s how he did it. But I think otherwise.