Australian Newsagency Blog

A blog on issues affecting Australia's newsagents, media and small business generally.

Are newspaper prices set to fall?

Mark Fletcher
December 28th, 2015 · 2 Comments

While the UK newspaper marketplace is very different to here in Australia, some trends are followed here. I am watching with interest the move by some UK newspaper publishers to cut cover prices. With many newspapers available, price as a differentiator is important to them. here, not so much.

I feel for UK newsagents confronting these falling prices as it impacts gross profit. If sales do not spike sufficiently, the return on floor space, return on labour and return on inventory will be down, making one question the value of the product.

The best way for any newspaper in any marketplace to increase sales is for it to provide relevant content unavailable elsewhere. A lower price for content that is not interesting, current or relevant will not result in an increase in sales. Indeed, dropping the price looks like you are giving up on differentiating your product.

9 likes

Category: Newspapers

2 responses so far ↓

  • 1 Brendan // Dec 28, 2015 at 8:10 AM

    If prices were to fall here I would have to strongly consider getting out of them altogether…..unless we kept the full cover price as profit.

    0 likes

  • 2 Paul // Dec 29, 2015 at 1:11 PM

    Courier Mail has a price increase again early February so highly unlikely they are going to look at reducing their price any time soon. Most expensive toilet paper on the market !

    1 likes

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