Fighting declining newspaper margins
Check out how one UK newsagent is dealing with the issue of declining margins:
Dear Customer.SUNDAY EXPRESS:
There comes a time in life when one has no other option but to put pen to paper, such time has certainly arisen.
Over the recent years the National Publishers have continually cut Newsagents terms whereby the normal profits of 28% have dwindled alarmingly in some cases today to a low 21%.
Even Wholesalers like Smiths News have introduced a carriage charge of £50 a week to retailers simply because Publishers have screwed their profits to a bear minimum and the carriage charge to us retailers is now the wholesaler’s main income.
However, the situations slowly worsen and the reason for this letter to you is to bring to your attention of the latest underhand methods of the Sunday Express boss Richard Desmond.
Desmond decided that when the News of the World went out of business he would reduce the selling price of the Sunday Express to ONE POUND (from £1.35p), in an effort to captivate the News of the World readers to his publication.
That’s fine, Mr Desmond can do what he wants with his own money, but the shock every retailer faced last weekend when Desmond informed all retailers by letter on Saturday morning he was taking 7p of Newsagents profits per copy to minimise the lost revenue!
Newsagents all over the Country are up in arms with the obnoxious attitude by this money tycoon, to make this decision without consultation with the retailers is simply unacceptable and many newsagents are refusing to handle the publication what’s so ever for this reason.
What will happen in the future no one seems to know at this time, but whilst we appreciate your custom and would never point the pistol at your head, it would be sincerely appreciated if you would pick an alternative Sunday Newspaper for the immediate future?
Should you still wish to continue with this publication please note in line with other retailers the Sunday Express will carry an additional 10p surcharge until Mr Desmond comes to commonsense and reimburse the retailers with the original profits.
Thank you in anticipation of your support,
Regards,
Brian Webb.
