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Are You Receiving Your Entire Magazine Allowance?

A magazine allowance is certainly a boost to any retailer. The proper name is Retail Display Allowance or RDA. RDA means that magazine publishers pay retailers (such as grocery stores, convenience stores, or pharmacies) a certain amount for displaying and selling their titles. RDA's are mostly in the form of a quarterly check. The allowance is undoubtedly an incentive to any retailer because it may enable them to focus more on selling magazines or encourage them to launch more titles, apart from receiving profits.

Most RDA payments are 10% of the cover price, while some retailers can expect to receive 15% to launch certain titles. Not all publishers offer RDA's but those who do see this as their way of launching or adding new titles to their magazine offerings. At the same time, publishers give retailers a chance to boost their profits, so it's a win-win situation for both of them.

The RDA is given by the publisher as an incentive, in large part, to retailers who display their titles with better placements. The better the positioning a publisher receives, the more copies they can expect to sell. Conversely, worse placement means fewer copies are likely to sell unless the publisher and the title are familiar or popular.

Since RDA is an incentive for retailers, they may be tempted to try to collect the RDA themselves because they believe it's the most cost-effective. The truth is they may not receive the allowance they deserve because they lack the knowledge and experience needed to receive the full RDA collection. This could also be combined with the overwhelming responsibilities they face in running a store while trying to accomplish this task. Instead, they may end up abandoning the task of RDA collections altogether or hire an RDA collections firm in the end.

There's nothing wrong with hiring an RDA collections firm – in fact, this is highly recommended – and may be something retailers do in the first place instead of trying to carry out this task on their own. RDA collections are not easy – in fact the process is quite involved especially when a retailer handles volumes of titles, suppliers, and publishers. Retailers who are trying to learn and understand how RDA collection works on the go will most likely result in experiencing costly mistakes.

To ensure that the retailers receive what they deserve, they wisely outsource this task to professional firms who focus on one thing and one thing only -- RDA collections. Premiere Retail Services, Inc. has more than 100 years combined experience in the publishing industry. They have the experience and knowledge that ensures retailers receive the magazine allowance they deserve.

RDA administration firms exactly know what they are doing. They don't have to learn the rudimentaries of RDA collections while doing their job because they have years of expertise of in this field. As a result, retailers who hire an RDA collections firm are sure to receive their allowance – this factor alone makes the professional firms attractive to retailers.

Retailers may want to keep in mind that an RDA administration firm is not affiliated in any way with the publisher, but rather is a separate company. When the publisher and the retailer have agreed upon the RDA and the retailer receives a contract from the publisher, the retailer should also have another contract, this time from the RDA administration firm.

The RDA administration firm will do its job which consists of creating a list of magazine titles the retailer sells, tracking which titles are sold each month, submitting reports and invoices to the publishers, and other related paperwork. The firm will also do follow-up updates should payments from the publisher be late.

See how complicated RDA collections work is? It must bring comfort to retailers to know that someone else does the work for them. An RDA administration firm will lift the burden off the retailers, enabling them to focus more on selling magazines and adding titles to their offerings. A reputable, professional, and highly-experienced RDA administration firm does its job well in making sure that retailers rightly receive their entire magazine allowance.

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