|
In addition to the distribution of magazines and newspapers, Smiths News & Menzies Distribution have taken advantage
in recent years of their position in the independent convenience store market. They have an agreement in place with 10,000
of their retailers, to automatically allocate any suitable product, not just newspapers, on Sale-or-Return (providing it
fits into certain criteria) to these 10,000 stores and then simply add the cost of these goods onto the customer’s
next newspaper invoice.
All products and commercials are vetted and approved by Innzone. Innzone then present the S.O.R. product to Smiths News
and Menzies Distribution for their company approval, including risk management assessment. The two estates then feedback
whether the product is one they would like to proceed with. If positive, Innzone agree between the news wholesaler and the
supplier, on the number of stores suitable for the allocation (anywhere between 500 and 10,000), the length of the “on-sale”
period for the product (4, 6, 8 weeks etc) and the most suitable on-sale date. The difference between the quantity of units
supplied to Innzone and the quantity returned by retailers (which is subsquently returned to the supplier) is called the Net
Sale figure and it is the Net Sale on which all suppliers are paid (per unit).
Please note however all mint returns can be recycled into new outers (e.g. Counter-Display-Units) and re-packaged as new
for a second allocation just a matter of weeks later (from the original allocation), thereby increasing the overall net
sale figure from the original supply.
Take a look at the box below for a summary of how allocation can work for your product:
Is my product more suited to Allocation or Telesales?
Here is a check list:
| Product Specifications |
Allocation |
Telesales |
Does my product need a telephone explanation to the retailer? |
No |
Yes |
Is a retailer automatically stocked with my product, without asking for it? |
Yes |
No |
Is my product a Fast-Moving-Consumer-Good (FMCG)? |
Yes |
No |
Do I have to supply enough product on day one, to stock all stores? |
Yes |
No |
Is the Retail Sales Value of a retailer’s initial order under £35+VAT? |
Yes |
No |
Is the Retail Sales Value of a retailer’s initial order over £100+VAT? |
No |
Yes |
Is the unit RRP of the product under £1.99 incl VAT? |
Yes |
Yes |
Is the unit RRP of the product over £1.99 incl VAT? |
No |
Yes |
Can the retailer return my product immediately upon receipt? |
Yes |
No |
Is the retailer required to wait a length of time before returning the product? |
No |
Yes |
Am I guaranteed to receive payment on the net sales of the product |
Yes |
Yes |
For more information on our Allocation services including all commercial requirements, please email info@innzone.com
|