Circulation: how to make print circulation profitable

Q: How?

A: We hear it all the time: “Print is in decline”. Costs continue to rise, paper, distribution, production, all putting pressure on the bottom line. There is no doubt that a lot of the advice and strategies publishers follow chase volume, but the current environment requires an innovative approach which encompasses all areas of circulation and does not just focus on volume but also on profitability.

It starts with a mindset change. We are not after big numbers anymore, although we should always be on the lookout for the opportunity. The focus needs to shift to profitability. That shift can be challenging; it is first an internal battle, as it does require a change from the traditional and long-established mode of thought across all teams involved in circulation. But with the right data and results, the business case becomes clear.

• Understanding the true value of your content: Know your worth, but let your customers help define it. Use price testing, bundling, gifting, additional content, and value-added benefits to find your brand’s sweet spot. There is often a lot of fear and anticipation that increasing your price will lead to a decline in sales. However, our experience on the newsstand tells a different story: in over 90% of cases where we have introduced premium pricing, we have sold the same amount or more copies, which resulted in higher RSV, higher profitability, in most cases higher sales and therefore higher efficiencies. Win—win!
• Premium pricing works, even in a competitive market: Premium price models can lead to increased revenue, visibility, and performance too. We have seen double-digit sales growth using premium cover price strategies. Proactively using the grocery CROS (Cash Rate of Sale) process to drive improved listings and positioning leading to increased sales, revenue generation (RSV), profitability, efficiency and performance against lower average priced competitors and the market in general.
• Print smart, not big: Are you printing too many copies to serve your audience? Break the idea that value equates to page count or volume or that availability ‘at any cost’ will give ROI... ever. Review your print order. Check your newstrade sales efficiency. Can you reduce your print run and still sell the same numbers of copies? If so, you are reducing costs without sacrificing revenue. Copy allocations must be regularly reviewed: are you consistently sending copies to zero seller stores? Why? Identifying profitable sales by store is simple!
• Subscriptions: confidence over discounts: ‘Confidence not arrogance’ in your pricing and value proposition. The traditional approach to drive subscriptions is to lower the price, but why? If you are confident in your content, why not reflect that in your pricing? And why let your competition dictate your pricing? Take the same confidence you apply to premium-priced newsstand copies and apply it to your subscription or membership model. Avoid training your audience to wait for your regular discounts. Focus instead on enhancing the value of your offering, not undercutting it. The start may well mean making more profit from fewer subscribers but that then provides funds for improved marketing to widen your reach.
• Do not overlook legacy subscribers: Are you sitting on a goldmine? Long-term subscribers who signed up at discounted rates may still be paying them. They are loyal and engaged for a reason; they value your content and are willing to pay for it. Do not be afraid to review those legacy pricing structures and bring them closer to current pricing tiers.
• Build tiers, build community: A further extension of making your print circulation profitable is to consider a tiered subscription model. Offer a premium membership that includes a printed copy, your most expensive offering as this is your biggest cost and use that tier to drive perceived value. Customers are increasingly looking for community and a feeling of belonging and they will pay for it. A tiered or membership model reinforces belonging and increases retention, all while improving margins.

In conclusion, it is time to rethink how we value and manage print circulation. A shift in strategy, from chasing volume to focusing on value and profitability can result in increased sales, stronger engagement, better retention, all of which extend the value of circulation to your business and allow it time to adapt to the changing landscape of the industry, profitably.

Print still has a role to play, but we need to be ready to change and realise its true value to our customers.

Q: What are your three top tips?

1. Put your price up, do not be afraid, don’t wait for your competition, just do it. Customers love your content, they will pay for it especially if you give them an excuse via added value.

2. Review your print run, do you really need to print that many copies?

3. Review your legacy subscribers, you could be sitting on a goldmine!

For over 35 years, Warners Group Publications has supported specialist publishers with integrated circulation strategies. Our ‘Total Circulation’ approach connects newstrade, subscriptions, and digital to enhance engagement, retention, and revenue. We offer expert services across distribution, membership, digital, fulfilment, marketing, print, production, and advertising, all under one roof.

Email: natalie.smith@warnersgroup.co.uk

Mob: 07720 739674

Web: www.warnerspublishing.co.uk

LinkedIn: www.linkedin.com/in/natalie-s-1a6746121