CD Review racks up magazines for retailers

Folio: The Magazine for Magazine Management, June 1, 1991 by Susan Hovey

The publishers of CD Review are trying their hand at magazine distribution in an effort to get more music titles into music retail outlets.

WGE Publishing-the Hancock, New Hampshire, publisher of CD Review-has developed a rack program that will allow retailers to stock a number of different titles without the hassle of separate invoices from each publisher. This streamlined service lets retailers retain 40 percent of the cover price, compared with the 20 percent typically offered by wholesalers.

The company tried out the concept this spring in a few local outlets-achieving an average sell-through of 71 percent-and is currently expanding the test to 20 stores nationwide. CD Review has already signed on Jazziz, Country Music, Spin, Electronic Musician, Ear, Musician, option and Details (which regularly runs a music section). CD Review hopes eventually to offer retailers about 15 noncompeting titles to choose from for the eight-pocket rack. Each magazine will pay CD Review $1.50 per pocket for the first 12 months-after that, there's no charge. CD Review will receive roughly 10 percent on each copy sold.

"We're looking at this through the eyes of a publisher instead of a wholesaler," says Phil Martus, director of single-copy sales for CD Review, a 120,000 paid circulation title for which dealer-direct sales represent about 15 percent. Retailers, he notes, often believe it's not worth the effort to stock a few copies.

Martus is encouraged that by offering the titles under one umbrella, CD Review and the other magazines are opening a dialogue "that could spill over into other projects."

In recent months, for example, CD Review has begun pitching Spin in its dealer-direct telemarketing efforts. Brendan Amyot, director of circ marketing for Spin, says the hook-up has created 72 new accounts for his magazine. "Publishers tend to keep their cards close to the vest," he notes. "But we've created a nice synergy. There's a pot of ideas that just need to be developed."