Notable quotes from a recent

Circulation Management, Sept, 2001

MPA CIRCULATION FORUM PANEL

Rich Rhodes, Retail Sales Management Consultant

"It seems that 'wholesaler' has become a four-letter "I word in the minds of many publishers. But wholesalers are trying to force change in a system that badly needs it. Unfortunately, their execution leaves a lot to be desired. Getting product to market in an effective, cost-efficient way has become a real problem. On the other hand, when a forest burns down, it creates space for new trees to grow. The changing economics of the newsstand have also created some new opportunities for publishers. There are now somewhere between 250 and 300 specialty wholesalers and distributors around the country who service outlets and titles that don't fit the major wholesalers' financial cut-offs anymore."

"It's been estimated that the big four wholesalers lost something like $100 million last year. Why would they want to keep doing that? The alternative is to find a new structure that allows publishers and national distributors to work more effectively with wholesalers. A cost-plus model that would provide wholesalers with a stable profit level would seem to make sense. But that can't be an industrywide initiative; it will have to be pioneered by one of the big publishers or national distributors. And wholesalers will have to be willing to give up the idea that they're marketers, and relinquish some measure of control in relationships with retailers. That remains to be seen."

Robert Cohn, VP, Consumer Marketing Director, Time4Media Outdoor and Skiing Magazine Group

"We've redesigned our Web sites, and we're beginning to do more exploration of cross-migrating or cross-promoting between print and the internet. But at this point, its difficult to say whether the Internet will become a sizable new-business source for special interest magazines. I was initially very enthusiastic about the idea of promoting subscriptions on advertisers' Web sites, for instance. About a year-and-a-half ago, we set up some elaborate co-op programs. After many hours of work, I think we netted about 50 subs."

Mary Sue Rynecki, Senior VP, Circulation, Newsweek

"There's still a shortage of good people who want to I come into the circulation business, despite the downsizing and lay-offs. But I don't think that the current challenges that we face in consumer marketing are driving people away or hurting morale. People are grownups; they're willing to deal with challenges. I think that maintaining morale is mainly a matter of giving constant feedback to employees, and making sure that they're being given responsibility and some autonomy to do their jobs. I also think that e-marketing will greatly expand circulation's role over the next few years, which should help attract fresh talent.