Complaint Review: N.M.E. - National Magazine Exchange - PAT HAINES

What few people actually realize about the business of selling magazines is the huge profit potential in that sale. The comparison of the SDP/NME's rates to newsstand price is legitimate to a point, but in no way reflects the actual process the company benefits from. Anyone who has ever done business with SDP/NME will notice that the company has few "A" magazines on their
lists. This will change from time to time because the company goes for magazines with a low remit rate to the company. Remit is what the publisher charges the company to promote its publication. Now, strictly as an illustration, because I have no idea what the current numbers are lets say PC Magazine is currently selling retail in your grocery store for $4.95 per issue. To purchase every issue in a year would cost $59.40. The card in the magazine gives you, lets say $10.00 off the subscription rate per year or $49.40 plus a neat little pocket protector as a bonus for all you geeks out there. There can be additional price incentives for institutions, government or students for say even half price $29.95. But the REMIT rate to resellers such as SDP/NME is say, 90 cents per YEAR. See where the huge profit factor comes in? Why do they do this? ADVERTISING REVENUE. This is where the publishers make their real money, selling advertising space in the magazine. Have you ever noticed the annoying amounts of advertising in most magazines. Fact is, with the cost of production, staff, publication, distribution, etc., if the publishers had to rely on subscriptions or casual purchases to pay the costs, they would have priced themselves out of the market years ago. They use companies like SDP/NME to boost circulation so they can raise their ad rates. Then will raise the remit to the point where it no longer becomes profitable for the reseller to promote the book, SDP's cut off point in the past was around $3.00 - $4.00 per year. Yes, publishers will use resellers to undersell their own renewal/subscription departments, that is a dirty little secret in the business. Some publishers who are promoting new, obscure or less popular magazines will go to a "Zero remit" in that case SDP/NME will pay NOTHING to promote the magazine and in some cases will actually be PAID BY THE PUBLISHER a MONITARY incentive to promote it!!! This is pure unadulterated profit. This is why SDP pushes so many obscure or less popualar titles. So as you can see if you promote low or zero remit magazines; $1.29 per week X 52 weeks equals 67.08 per year times 4 years is $268.32. A HUGE savings at newsstand or subscription pricing - a HUGE profit at remit as in many instances the company only pays one year at a time. They would make money at 75 cents per week, do the math.

THERE IS NOTHING WRONG WITH THAT CONCEPT, BUSINESS EXIST TO MAKE A PROFIT.

The problem is again not what SDP does, but how they do it. Bill Hood would rather be percieved as slick rather than smart. Why? Haven't a clue. SDP could have an honest operation anytime they wanted to. All they would need to do, is explain to their potential customers what I just did. Sweepstakes, as an added incentive, fine, so what? As a lead in, misrepresentative and dishonest.

To anyone who reads this, and this person's claim that she's seen magazines sell for $9 dollars, please listen to what I am about to tell you.

I have been searching for a $9 magazine. I have found 2. Both are scholarly journals, and since Liz probably doesn't know what one is, a scholarly journal is a magazine (of sorts) which is published by scholars on a certain area of expertise. For example, the "Journal of American Psychology" is a scholarly journal. Right now, I am getting "Men's Health" for 20 dollars. That is a years subscrition to a very thich magazine for 20 bucks. On average I get one a month (they have special editions sometimes) so we'll do simply math. Got it Liz...Math.

20 dollars / 12 months = $1.66 an issue.

What say you to that one, Liz? In addtion, if you would be so kind as to further your education (get a GED and then go to a University) in the area of Law (like me) and you'll find the N.M.E. is actually in violation of 2 Federal Laws. Also consult the Federal Trade Commission at the number listed on their website and ask for Press Releases concerning N.M.E.

As an employee of NME it saddens me to see reports like this from individuals who have not even responded.

The $1,000,000 sweepstakes is not only legit, it comes from THE *ONLY* sweepstakes company that was investigated by the FTC (They all were.) and completely pass.

All aspects of the sweepstakes is handled by a different company. We generate and enter sweepstakes, a Law Firm handles the legalities and sends the certified letter to the winners, and yet a third financial company handles all the money and payouts.

The ceremony is held at the headquarters in Clearwater, Fl. A huge celebration is put together, and employeeds celebrate with the winners as much as the winners celebrate their prize.

Yes, they sell magazines. And the magazines are sold at an INCREDIBLE rate.

Anyone who reads magazine's on a even semi regular basis has noticed the ever increasing price of magazines, ranging anywhere from $2 per issue to $7, or even $9.

Personally I picked up about 6-7 magazine's a month, which didn't sem like much since I was just tacking them onto the end of my grocery bill. But when I did the math... around $30 a MONTH at the publishers price. Not to mention the newstand price! Instead they offer you a rate of just over $5 a month for the same number of magazines!

Nobody is forced to order, but yes it IS the seller's job to try.