The NFRN says: From today (Monday January 6), the price of Monday to Friday editions of The Times will rise from £1 to £1.20, but publisher News UK is breaking with pro rata terms and reducing the percentage margin that retailers receive from 25 per cent to 23.5 per cent.
This means that newsagents will receive 3.2p for each copy sold instead of 5p so they will now earn 28.2 pence a copy instead of 30p.
In contrast, from Monday January 13, the price of the Guardian’s Monday to Friday edition will rise to £1.60, while the Saturday paper will rise to £2.50 from January 11. The publisher has confirmed that the retail margin will increase on a pro-rata basis.
This move will see retailers receive 38p for each copy sold from Monday to Friday and 59p on Saturdays.
NFRN National President Colin Fletcher said: “Surely News UK can see that reducing the margin that retailers receive on its weekday editions of The Times is totally unacceptable?
“Not only does it have the gall to expect its readers to swallow a 20 per cent hike in cover price, it then has the temerity to claw back some much needed money from the tills of NFRN members.
“I’ve no doubt that as a result of these actions newsagents everywhere will now be deciding which title will get priority in their shops and also whether certain titles need to be priced accordingly to reflect the reduction in margin.”
Chief Executive Paul Baxter added: “The continued erosion of margin by News UK will lead to the inevitable, with news retailers giving less support to the Times and Sunday Times in favour of those publishers who continue to support the people who sell their titles.
“My challenge to every publisher for 2014 is to stop messing around with margin and start acting as if you care about your sales and the people who sell your newspapers – particularly independent newsagents who account for 60 per cent of newspaper sales and are the last men standing when it comes to offering a home news delivery service.”
