Continuing with the approach it has taken last year, news publisher Reach has made a cut in the percentage margin for retailers with the increase in cover prices of the Daily Express, Daily Star and the Saturday edition of the Daily Mirror.
The cut in terms will see the percentage margin that retailers receive falling to as little as 20 percent.
With effect from December 30, the price of the weekday editions of the Daily Express rises to 70p. With the percentage margin cut from 22 percent to 21.4 percent, retailers will now receive 14.98p for every copy sold.
From January 4 the Saturday Express will cost £1.10 and the cut in margin from 20.6 percent to 20.2 percent means stockists will receive 22.22p. The following day (January 5) the Sunday Express will rise to £1.70 in price, and with the percentage margin adjusted to 20.2 percent, retailers will see the pence per copy margin move up to 34.34p.
On the same dates the Daily Star will rise to 50p for weekday editions, 80p for Saturday editions and £1.20 for Sunday editions. The percentage margin will drop to 21.4 percent for the Monday to Friday editions and 20.2 percent at the weekend.
This means retailers will be paid just 10.70p for each weekday version they sell and 16.16p for Saturday editions and 24.24p for the Sunday paper.
The margin on the Saturday Daily Mirror, however, will fall to a new record low of 20 percent from January 4, 2020. As a result, retailers will receive 28p for every copy sold.
The NFRN has expressed its disappointment at the move.
“While these price increases will result in more money through retailer's tills, which we welcome, this is the second time within a year that Reach has increased cover prices for the Daily Express and Star and further reduced the percentage margin that retailers receive,” commented Stuart Reddish, national president of NFRN.
“This, coupled with the cut in margin on the Daily Mirror, sadly also comes at a time when we have been finalising plans to promote their printed products to their readers through our vast membership of retailers and this will bring with it a host of issues."
Reach has consistently cut retailers’ margins when increasing the cover price of its various titles last year.
