The Mail prince increase will costs retailers £1.8m a year, and costing the average newspaper seller 68p profit every week.
In a letter to retailers this week, the publisher announced a 5p price increase to 65p for its Monday to Friday edition, which will take effect from Monday 1 February.
While the retail profit margin will rise to 14.5p per copy – an extra 0.58p per issue – retailers’ terms have been cut from 23.2% to 22.4%, denying retailers a potential £1.8m profit.
Retailers’ profits from 260 weekday sales per year with maintained terms would have risen from £47.5m to £51.5m with the price increase, but with the cut terms will instead rise to £49.7m.
A spokesman for the Mail said the mail price increase would benefit independent retailers, highlighting the additional revenue it will create.
“Overall this will generate an incremental £16.1m retail sales value and a further £1.9m profit for retailers from the Monday to Friday editions,” he said.
He said the paper would also offer added value to readers, with a new pullout, Inspire, which will launch on Monday to coincide with the new price.