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NFRN challenges wholesalers to reduce carriage charges

The NFRN has renewed calls to wholesalers to drop their carriage charges in the light of a flurry of magazine closures and recent fuel price cuts.

According to the NFRN: Reminding wholesalers that there are two principle cost elements to supplying retailers with newspapers and magazines – the volume of the product that needs to be delivered and the cost of fuel for vehicles to deliver it – the Chairman of the NFRN’s News Operations Committee, Colin Fletcher said: “Every newsagent knows that the volume of newspapers and magazines they sell is in progressive decline year on year, yet every year we are expected to fork out for higher and higher carriage charges for a volume of product that is less and less.

“I think it is about time that wholesalers reflected these changes with a cut in carriage charges.  It seems only fair, since they are not shy at increasing carriage charges when these cost elements go up.”

Research carried out by the NFRN has revealed that the cost of fuel has dropped year on year by circa 4.2 per cent, the volume of newspapers distributed has fallen by 10.2 per cent and the volume of magazines has fallen by 16.23 per cent.

Mr Fletcher continued: “For too long wholesalers have based their carriage charges on account value rather than volume.  Yet, in reality, it costs no more to deliver a 200 gram magazine priced at £6 than it does to deliver a 200 gram magazine priced at £2. It’s time for wholesalers to think again as the current basis for charging is unjustified.

“So wholesalers, we have thrown you a challenge and eagerly await your response.”