New entrants to the trade will have to pay the wholesalers a deposit when opening an account with them. Details of this are available from your supplying wholesaler and should be considered in advance of accepting supply to ensure that your sales potential is able to meet this outlay.
The profit you can achieve by selling newspapers can be varied. The Newspaper Terms shows the trading terms applicable to newspapers in two ways – the percentage margin and the pence per copy that you will achieve for each newspaper sold.
In addition to the margin paid for newspapers sold, publishers pay an allowance of 2p per copy sold for each manual insertion of sections or supplements when retailers are required to complete the product before sale.
Additionally, the Third Party Advertising Insert (TPAI) scheme offers a payment to Home News Delivery retailers who register for the scheme with their wholesaler and is based on a weight based table (starting at 70g).
Retailers qualifying for TPAIs are credited through their wholesaler account quarterly in arrears.
Magazine and Collectable products have a flat rate of 25% with one exception whereby Partwork titles are less at 22.5%.
Finally, you must remember that these margins are exclusive of the amount you also have to pay your supplying wholesalers in respect of your weekly Carriage Service Charge. This must be considered by you before proceeding. A copy of the carriage charge template is available from your supplying wholesaler or can be found on the Smiths News Updates or Menzies Updates pages.
Newspaper Terms & Margin Calculator and Third Party Insert Payments
Work out your margin by downloading the calculator below (correct as of 1 October 2019):