The NFRN says: In what will be regarded by news retailers as a “kick in the teeth”, regional publisher Newsquest has announced a number of significant price increases across a range of its titles, but is refusing to give retailers their fair share of the increased income.
As the table below shows, whilst cover prices have increased significantly across these titles, the percentage margin previously given to newsagents has been slashed, meaning that they will only see a small fraction of the cover price increase, rather than their full share.
For struggling newsagents who are stuck with prices that are fixed by publishers and printed on the title, the only way they can meet increasing operating costs is if publishers give pro rata terms increases when they increase the cover price. By failing to do that, Newquest has put itself on a collision course with newsagents who are incensed by this betrayal.
As NFRN National President, Alan Smith, points out: “As I visit each of the Federation Districts during my presidential year, I am finding an increasing groundswell amongst members who are rapidly losing patience with the constant abuse they are receiving from news industry suppliers. If it isn’t wholesalers robbing them blind through unjustified carriage charge increases, it is publishers lining their pockets at the retailers’ expense through their failure to maintain pro rata terms.”
“What amazes me is that publishers and wholesalers don’t seem able to see that this mindless strategy is self defeating. In one breath they complain bitterly about diminishing sales and in the next they act in such a way that any news retailer who is anxious to survive, is being forced to diversify his business away from news that is providing an ever-depleting return.”
NFRN Chief Executive, Paul Baxter added: “These crass actions by publishers are turning small newsagents into expert mathematicians. No longer are retailers able to just “go with the flow” and take whatever is thrown at them, but if they are intent on surviving in business they are now being forced to regularly calculate just what profit on return they are earning for every square meter of display space in their shops. This is something we are helping our members to understand and will are providing the mechanics to do this.
In a separate statement, the NFRN welcomed news that the Sun will be increasing its cover price on their weekend editions by 10p and, says the NFRN, following protocol by giving their respective Retailer share of the increase.
Alan Smith National President said: “In recent times News International has led the way and again demonstrated a clear focus and understanding of their Retail Customer. This focus is resulting in them seeing an increasing value from the Independent trader that we are pleased to be working with them on and will further be identifying opportunities to ensure our Members sales and profits grow.
Paul Baxter NFRN CEO said: “This good news comes at the same time as we are also seeing a spate of profiteering by Publishers of Regional Press titles and we remind those Publishers that we intend to challenge these appalling decisions, we also take this opportunity to remind Publishers that our member’s costs also increase, especially following an alarming number of late deliveries in recent times, and we expect all parties involved in the distribution of news products to accept responsibility in protecting this vital consumer category.”
