The Fed says just a matter of weeks after introducing enhanced payments for retailers supporting its new subscriptions scheme, the Daily Mail has provoked anger by announcing it is increasing the cover price of its weekday editions and cutting the percentage margin that retailers receive.
From Monday April 3, Monday to Friday editions will rise by 10p to £1 but the Mail has said that “market conditions have meant that we have had to reduce the percentage margin to 21.8 per cent.”
Responding, the Fed’s National President Jason Birks said: “The Daily Mail is right that times are tough, but Fed members are facing considerable financial pressures too. Besides facing the cost-of-living crisis, supply issues and sky-high energy bills, on April 1 our wage bills will be rising, and customers served by Menzies Distribution will see their carriage charges increase, too. To give on one hand with its enhanced payments and then to take with the other, by cutting our terms, is a bitter blow.”
Mr Birks expressed members’ anger and dismay at a meeting with the Mail Newspapers on Wednesday this week: “The publisher tried to further justify this move by saying it was the first time that margins had been reduced on the daily paper for seven years. We replied by saying that as the market leader, it should be leading the way by supporting news retailers and maintaining our terms, not treating us with such total disregard and disdain.
“I strongly believe that some members may consider delisting the product and, indeed, whether they continue selling newspapers, because their hard work that has kept the news industry afloat for years is neither recognised nor appreciated.”
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