NFRN National President Stuart Reddish has applauded News UK for accompanying its latest cover price increase on the Sunday Times with pro rata terms.
From July 7 the cover price of the Sunday paper will increase by 20p to £2.90, which the publisher says will deliver an extra £5.6 million in cash through retailer tills a year.
With the percentage margin that retailers receive maintained at 21 per cent, Sunday Times stockists will now make 60.9p per copy – an extra 4.2p on every copy sold.
Mr Reddish said: “This is great news for Sunday Times stockists and is timely as it comes just a week after delegates at our centenary conference in Brighton voted unanimously for the NFRN’s national executive committee to negotiate with all publishers so that when cover prices rise margins remain at least pro rata, with the new rates taking effect from the first day of any price increase.
“During the debate members made it abundantly clear that with operational costs going ever upwards, they would only back those publishers that demonstrated support for news retailers by accompanying price rises with pro rata terms.
“The announcement that pro rata retailer percentage margins will be applied to the Sunday Times when it increases its cover price from July 7 is warmly welcomed by the NFRN and I encourage all members to now give the paper their strong backing.
“As the leading organisation representing independent retailers the NFRN wants to see balance and fairness throughout the supply chain so that means condemning publishers who reduce retailer terms and thanking and praising those who act responsibly by maintaining pro rata terms when cover prices rise.”
Announcing the move, Sunday Times Managing Director Chris Duncan said: “We’re pleased to be adding an annual £1.2 million of margin into retailers tills as part of this price change. We know that our retailers across the country help us reach the nation every day, and we are happy to mirror the price rise in a retail pence per copy rise.“