Just one week after the NFRN’s Annual Conference in Brighton, new National President Stuart Reddish has announced a strong win for members served by Smiths News with the news wholesaler introducing a four weeks deferred payment scheme for collectables.
This new scheme, which takes effect from July 1, means that collectables stockists will not be charged for product until four weeks after delivery. Up until now Smiths News has operated a one week deferred payment scheme.
In a letter to its customers, Smiths News said the decision had been taken following discussions with the NFRN and with key collectables publishers.
Welcoming this move, Mr Reddish said: “The collectables marketplace is very exciting and contributes some valuable sales to NFRN members as our Head of Operations and News explained to delegates at last week’s Annual Conference. However, he also called for greater support from suppliers, adding that we had been making representations to both Smiths News and to publishers for more support in this area. We are delighted that Smiths News has not only listened but has acted on our calls and is taking positive steps that will put more money in our members’ tills. Deferring payment for four weeks will improve members’ cash flow and help them enjoy more profits from this valuable category.”
The NFRN will now be pressing both Menzies and partwork publishers to introduce deferred payment schemes.
Mr Reddish said: “I will be meeting with magazine distribution companies shortly and will be urging them to follow the example set by Smiths News so all sections of the supply chain can benefit from improved sales.”
As a result of Smiths News’ move, the NFRN has committed to a significant communication campaign to get members to take and try collectables.
“We want to press home the fact that this deferred payment offers Smiths News customers a fantastic no risk opportunity to increase their profits from this highly lucrative and buoyant market,” Mr Reddish explained.
He added: “To enable members’ to make the most from collectables we will be launching a new pre-order service for products and skus. This service will be available from NFRNOnline.com, NFRN Connect, our field force representatives and at our business meetings and trade shows. I have no doubt that it will help NFRN members significantly increase their share of the collectables market.”