Published by: Joe Lenane | Published Date: 1st January 2016
You should consider the profit that you can derive from newspapers by viewing the Newspaper Terms, Cover Prices and the Margin before applying for supply.
New entrants to the trade will have to pay the wholesalers minimum account value each week and pay a deposit. Details of this are available from your supplying wholesaler and should be considered in advance of accepting supply to ensure that your sales potential is able to meet this minimum weekly outlay.
Magazine and Collectable products have a flat rate of 25% with one exception whereby Partwork titles are less at 22.5%.
The profit you can achieve by selling newspapers can be varied. The Newspaper Terms shows the trading terms applicable to newspaper in two ways, the percentage margin and the pence per copy that you will achieve for each newspaper sold.
In addition to the margin paid for newspapers, publishers pay an allowance of 2p per copy sold for each manual insertion of sections or supplements when retailers are required to complete the product before sale. Additionally, the Third Party Advertising Insert (TPAI) scheme offers a payment to Home News Delivery retailers who register for the scheme with their wholesaler and is based on a weight based table (starting at 70g). Retailers delivering qualifying TPAIs are credited through their wholesaler account quarterly in arrears.
Finally you must remember that these margins are exclusive of the amount you also have to pay your supplying wholesalers in respect of your weekly Carriage Service Charge. This must be considered by you before proceeding. A copy of the carriage charge template is available from your supplying wholesaler.
Download the latest terms here (correct as of 15 January 2016):