Telegraph Media Group has today (30 January) announced plans to significantly increase the cover prices of all its editions.
The move, which NFRN members were given prior warning about in an email sent out yesterday by the NFRN, means that from February 1 the price of the weekday, Saturday and Sunday newspapers will increase to £2.50, £2.80 and £2.50 respectively.
At the same time, the Telegraph has advised that the improved margin that retailers receive is being held back for six months until Saturday August 1 2020. The Telegraph says this is because the annual payment cycle of subscriptions means any cover prices do not immediately transfer to subscribers. This takes around 12 months.
Telegraph Media Group added that it is important that retail margins are aligned with the subscription renewal structure to allow it to remain competitive against rising newsprint and distribution costs and to enable investment in gaining subscriptions and supporting retailers.
When the new retail margins take effect, retailers will be paid 51.25p for Monday to Friday editions, 57.4p for Saturday editions and 51.25p for Sunday editions.
Responding, National President Stuart Reddish said: “This move will obviously be disappointing to many news retailers and the NFRN does not and cannot endorse margin reductions, particularly when our members are operating under such financially challenging operating conditions.
“However, we have held discussions with the Telegraph to explore ways in which we can work together to increase sales and we have identified some clear benefits for members prepared to support the newspaper publisher’s subscriptions-first strategy.”
Since early last year many members have been participating in an exclusive Telegraph offer which rewards them with £50 for every subscription they secure. To date 272 orders have been obtained by NFRN members, with those participating sharing £13,600.
Mr Reddish continued: “I would urge members to get behind this opportunity to guarantee long term revenue by converting new and existing Telegraph readers into subscribers. Converting one customer into a seven-day subscriber will earn you £50 plus the margin you will earn from the sale.”
Members have the opportunity to generate incremental revenue by selling print subs to the Telegraph which offer great savings of over 40% for your customers – we’d encourage you to explore the opportunity outlined below during this period.
If you are interested in learning how to convert new and existing customers of the Telegraph to subscribers please ring NFRN Connect on 0800 121 6376 or click the button below to find out more.
Members in the Channel Islands and Republic of Ireland will receive hard copy advice letters with their live news supplies today, Friday and Saturday.