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How Do Retailers Get Magazine Retail Display Allowances?

Retailers who sell magazines can get Retail Display Allowances (RDA) for the magazines they display and sell in their store. Some stores try to do this task on their own, but soon find that magazine rebate invoicing and everything associated with it are not always easy. There are also some prerequisites that must be met in order for the RDA to be obtained.

To begin with, retailers must have a contract with the magazine publisher. There are forms to fill out and paperwork to submit to seal this contract. An RDA administration firm can help with this, as well, but most retailers will have contracts signed with magazine publishers before they first open their doors. While it is possible for a retailer to go through this process alone, it would be much simpler to hire an RDA administration firm to handle the paperwork for them.

Retailers must also have a contract with the RDA administration firm. It is not the publisher that gives the retail display allowance, but rather a separate company. This requires an additional contract.

The RDA firm tracks all magazine sales and invoices the publisher. Sales are reported and the amount due is determined from these numbers. The publisher receives the invoice and prepares the RDA. The right RDA administration firm will handle the magazine display allowance invoicing and collection. This will be one task you will not have to concern yourself with each quarter. They will ensure your rebate claim is sent on time and will follow-up should payments not be sent in a timely manner.

Magazine RDA collections are tracked and invoiced quarterly by the RDA firm. The firm sends an invoice to the publisher after they have filled out all of the paperwork associated with the claim. Publishers send payment to the RDA firm. As mentioned above, if payment is not received in a timely manner, the RDA firm will follow-up to ensure the retailer receives the money that is due to them. While the RDA firm has the money from the publisher, they remove their portion and send the rest on to the retailer.

When you consider how time consuming tracking magazine sales, maintaining contracts and quarterly invoicing can be, it makes sense for retailers to allow an RDA administration firm to handle this task for them. Not only does the retailer receive the magazine retail display allowance for the magazines they sell, they also have a firm to handle this task for them. All in all, this results in an excellent incentive for retail stores to display and sell a wide variety of magazines to their customers.

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