Smart ways to reach your magazine readers

Because of subject matter, demographic demand, or shipping restrictions, many publications have mosaic-like distribution throughout the country. You'll find these titles everywhere in some cities and nowhere in others.

Usually, this is because the magazine does not have a national distribution contract with a large distributor. It may also be because the magazine lacks competition - without a defined niche, it's hard for the distributor to know where to put the magazine on the newsstand.

You may be able to remedy these problems, but if not, direct-to-retail sales - sending a dozen or so copies of every issue directly to individual retailers that have a direct interest in your subject - is an alternative. Many publishers are taking this approach seriously, especially as the single - copy sales environment worsens. Here's how to do it.

Identify your market

Every magazine has some markets where it can sell direct to retail. Some opportunities are less obvious than others, however. If you sell a fly fishing magazine, for example, then fly and tackle shops are a great outlet. But what about local boat shops or marinas or convenience stores in tourist areas where fishermen buy supplies? Or what about upscale men's clothing stores that have a subtle outdoor theme?

Prospect with direct mail

Trade shows and telemarketing work well for finding direct-to-retail prospects, but the best way I've found to generate maximum leads for the lowest price is the double postcard. Use one side to explain the deal, and the other for a business reply sign-up form.

When I was a magazine publisher, our first mailing of this type went to 8,000 prospects, and we received about a 5 percent response. A follow-up telephone call about a week after the mailing helped increase that response rate significantly.

Make the deal too good

to pass up

To attract retail outlets, particularly ones that have never before sold magazines, you need to make the deal a no-brainer. We offered the following terms: on a minimum order of 10 copies, we gave full credit on unsold copies returned within six months of cover date; retailers kept 60 percent of the cover price; we billed after shipping; we paid all shipping costs. Who could say no?

Concentrate on profitability

One of the great things about direct-to-retail programs is that they generally give you a much higher sell-through, and it is fairly easy to make them profitable. Based on the terms outlined above, we had to sell at least six copies to each retailer to break even. Because we averaged 70 percent sell-through with most of our outlets, the program was worthwhile.

Once you have your program up and running, and your retailers have had a chance to see how well the magazine sells, begin replacing those outlets that don't sell at a profitable level. Work with retailers to maximize sales for both of you.

Resell the audience

Beyond the advantages of increased circulation and a viable revenue source, a good direct-to-retail program can reward you with a highly targeted audience. This is worth something to your advertisers and should be marketed accordingly. Look for opportunities to parlay your exposure in retail outlets into attractive promotions and merchandising programs. Whenever possible, sell your magazine in the same places that your advertisers sell their products. This commitment to their market will not go unnoticed.

As newsstands become more crowded and consumers more selective, publishers are being challenged to find new ways to bring their products to market. Keep an open mind and think of your magazine as a specialty retail item that can be sold anywhere consumers buy products that satisfy a specific interest. The possibilities are endless.

Joseph E Daniel is a magazine industry consultant.

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