ALLOCATION


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:

Uniset

 

 

 

Football Heroes

 

 

 

Sunshots

Allocation

Gaga Magazine

 

 

 

 

Target

 

 

 

Confectionary

 

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