The Telegraph has again slashed retailer percentage margins in its annual price rise for six months, sparking anger from stores.
Retailers have been informed of a price rise on all editions of The Daily Telegraph and The Sunday Telegraph which will mean a percentage margin cut for retailers.
Retailers received a letter on 2 February which stated: “For us to continue our ongoing investment in outstanding journalism, we will be increasing the cover prices of The Telegraph from issue dated Saturday, February 4, 2023.”
The new prices see The Daily Telegraph Monday to Friday Edition rise from £2.80 to £3, The Daily Telegraph Saturday Edition rise from £3.50 to £4, and The Sunday Telegraph rise from £2.50 to £3.
The percentage margin will fall initially on all editions, as the pence per copy to cover subscription payments over 6 months will not be altered. After the six months have elapsed, the margin will be restored to present level on Monday to Friday editions. The Saturday and Sunday editions will both see a cut to the current margin. The retail margin on the Saturday edition will drop by 1%, and the Sunday edition by 0.5%.
Analysis by Better Retailing indicates that The Telegraph price rises could present a loss of up to 5% profit on weekend editions even after the 6 months have elapsed.
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A letter sent to stores in Northern Ireland, seen by Better Retailing, shows that new prices will be even higher. The Saturday edition will from 4 February cost £4.30, while the Monday to Friday editions and The Sunday Telegraph will cost £3.20. After 6 months, margins will be put at a level with those in the rest of the UK.
The Fed’s national president Jason Birks said: “It is very disappointing that TMG is following the publishing herd and has again chosen to upset its most loyal trading partners by cutting percentage margins and deferring any benefits for six months.
“It is totally wrong to delay paying retailers their fair dues, particularly on countertop sales where there is no requirement to delay the increase. This is an unfair practice that must stop.
“TMG knows who subscribers are and who are not, so it has to explain and justify why this one size fits all approach is again taking place.”
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