RetailVision distributor scam

I don't know how many people this will relate to, but for any mid-size magazine publishers who deal with a distributor called RetailVision, this is some infuriating news.

RV is the exclusive distributor to stores that include FYE, Strawberries, Coconuts, Wherehouse Music, and all other chains owned by Tranworld Media. They also supply many independent retailers across the US through their indie media program.

I have experimented with their programs utilizing both their chain and indie store distribution. Each chainstore takes $2 per issue, and each indie store takes a one-time $15 setup fee (for "purchasing a pocket" for each new title) in addition to their percentage.

In only three issue's time, I have accrued a massive debt with RetailVision, and even though I was assured my initial debt would be paid off in a year (and I would start seeing income), I am now in the hole. The exact number is not something I need to disclose for the sake of this blog, but my sales reports that I receive monthly from them show an extremely (and inexplicably) low sales percentage--far below any distributor I've ever used in the eight years I've been publishing Verbicide.

Several days ago I was discussing these RetailVision woes with an acquaintance who owns a bookstore here in Vermont (also, coincidentally, where RV's corporate office is located). He mentioned to me that he uses RV for several titles, and when I told him of the huge debt and low sales, he told me he is not surprised.

As it turns out, I learned that RetailVision is the only distributor I've ever heard of who uses the "affidavit" system (i.e., the honor system) for calculating returns and unsold copies! Unlike every other distributor out there who demand covers be torn off and returned when the shelf life of each issue is completed, RV simply sends a single-sheet affidavit to each retailer. The retailer fills out a form of how many copies were left unsold, and faxes it back to RV.

The problem is, any bookstore owner can simply write in that they sold ZERO copies, or only one or two copies, when they may have sold three, five, seven, whatever amount of copies. That way, they can pocket the full cover price of each issue sold ($3.95 in the case of Verbicide) and then they pass on the debt to the distributor, RV, who in turn, pass on the entire debt to the publisher.

To rub salt in the wounds, I told the store owner about how each independent store charges $15 per new title for a setup fee. That, of course, is money he's never seen for any of his RV supplied titles.

Anyone considering working with RetailVision, do not. Anyone currently working with them, I'd strongly advise taking a look at your sales reports and see if this scam is worth accepting to move a few extra copies.