Munce Group members given waiver to help improve promotion returns

Zondervan has relaxed a block on direct-order service to small independent retailers that forced them to get their products from distributors.

The Grand Rapids, Mich.-based publisher has agreed to fulfill orders for smaller accounts that are members of the Munce Group after representations to Zondervan from the leading marketing company.

Although it affects only a small number of stores, the move means that they will be able to buy from Zondervan without meeting the usual minimum level required. Zondervan introduced the cut-off two years ago as part of an effort to encourage greater supply chain efficiencies in the Christian retail channel.

The publisher wrote to retailers explaining the move was intended to help them, as margins might be smaller from distributors, leading to faster inventory turns that were ultimately better for business.

Thomas Nelson followed Zondervan’s lead last year, recommending that its small account stores get their orders fulfilled through a distributor rather than direct--though not requiring them to do so.

Kirk Blank, chief operating officer for the 600-member Munce Group, said while Zondervan’s 2006 change had been broadly welcomed, it had caused some difficulties for a few stores when it came to stocking Zondervan products included in Munce catalogs.

Blank said stores that didn’t have an account with Zondervan were “suffering financially” because they could not get the same discounts from distributors that retailers who had an account with Zondervan could get as part of a special promotion. That meant taking in some items at a loss.
Blank said that only a small number of Munce member stores had been affected, but “enough that it consistently was a challenge for us.”

Zondervan’s relaxation of its requirements had been favorably received by stores, he said. One of those pleased by the move was Geni Hulsey, manager of The Garden Bookstore at Houston’s First Baptist Church in Houston and president of the Church Bookstore Network.

She was glad for the smaller and new stores, she said. “Every store needs the advantage of the specials that are offered by the vendors,” she told Christian Retailing. “I think it is especially important that any vendor who advertises in a catalog be willing to establish an account with those who will purchase and distribute that catalog.”

Gary Davidson, senior vice president for Christian retail sales/ministry sales at Thomas Nelson, said the company took a similar direction as Zondervan last year, “though we did not say we will close your account and you can’t order from us. We did change our terms a little.”

The move had not drawn any complaints, Davidson said. “We offer very aggressive promotions and opportunities for independent retailers on an ongoing basis to help them,” he said.

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