BtoB Media Business - February 2007 - (Page 26)
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A 26.qxp 2/2/2007 1:22 PM Page 1 Circulation CIRCULATION How many
fulfillment houses are needed? BY MARK J. MILLER L aura Wieringa,
circulation manager at Allured Publishing Corp., which produces such
titles as Cosmetics & Toiletries and Skin Inc., is facing a difficult
decision that every circ director must confront. Allured currently uses
two fulfillment houses, and two of its titles are coming up for bid in the
spring. Would it be easier to consolidate and use just one fulfillment
house? Arguments run both ways. Christine Oldenbrook, director of
marketing and M e-media at Bobit Business Media, said she prefers using
one fulfillment house because of the leverage on prices and services it
can give a company. However, she added, one fulfillment house doesn’t
always fulfill the needs of your various titles. Oldenbrook has worked at
other organizations that used more than one fulfillment house. At Primedia
Inc., paid books didn’t fit in at the company’s chief fulfillment
house, so Primedia had them handled elsewhere. That much smaller house
didn’t have as much room to negotiate, she said. The books she handled
while at Hallmark Data Systems were all taken care of by the company’s
main fulfillment house, where they got much better treatment because there
were so many of them. A second fulfillment house is normally used when the
first cannot meet the needs of all a publisher’s titles. Hearst Business
Media, for example, uses a separate house for its medical books because the
American Medical Association and American Osteopathic Association only
allow their files to be handled through specific fulfillment houses, said
Barry Green, VP-director of circulation at HBM. CMP Media also relies on
more than one fulfillment house. “A majority of CMP’s publications use
Hallmark Data Systems because [it is] circulation-based,” said CMP
spokeswoman Meryl Franzman. “The second fulfillment house is for the
limited number of subscription-based publications CMP has.” At Reed
Business Information, all its controlled-circulation books are handled
inside the organization, while paid circ is done by Communications Data
Service. “In our case, the reason for the difference is simply that our
in-house system is not set up to manage paid subscriptions,” said Eric
Rutter, VPcontrolled circulation at Reed Business. Wieringa said, “If
you have both paid and controlled circ, it is important to make sure you
have a fulfillment company that really can do both well.” Using one
fulfillment house is generally better from a logistics perspective,
Oldenbrook said. “The impact to your staff— your fulfillment teams and
your circ managers—and all the different ways fulfillment houses process
things and require 26 | Media Business | February 2007 |
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Table of Contents for the Digital Edition of BtoB Media Business - February 2007
Contents
Online Has Become a Mainstream Revenue Source
Publishers Invest in Preparing for a Surge in Video Demand
Analysts See Another Big Year Ahead
Sales & Mktg
Events
Production
Circulation
People
Benchmarks
Endnote
BtoB Media Business - February 2007
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