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Magazine Display Allowance and How It Helps Retailers

Retailers are looking for ways to make extra income. That's why many of them decide to sell magazines which are strategically placed next to checkout counters. In this manner, it will entice customers to pick the magazine up and buy it. In other words, having the magazines encourages impulse purchases. Other items that can be sold are candies, lip balms, batteries, newspapers or periodicals and some seasonal items.

Think about magazines. They're the most familiar items near the checkout counter. Magazine displays also appear in just about every grocery store, supermarket, convenience store, drug store, pharmacy, and even independently run retailers. If you haven't sold magazines yet, you should stock them in your store -- it could be an untapped way of bringing more customers in and increasing your profit margin.

You could get more returns than direct profits from magazine sales. Have you heard of retail display allowance (RDA) or magazine display allowance? It is a compensation that retailers receive for the magazine titles they sell, mostly in the form of cash. Most RDA's offer equal 10% of the cover price of the magazine (or a periodical). But rates may vary depending on the title; some titles do not offer any rate at all and are not required to do such.

How does magazine display allowance or RDA help retailers? RDA has been in the retail industry for several decades and is designed as a financial impetus for the retailers to add more magazine titles in their stores. Doesn't it sound great that the more titles you display in your store, the bigger chance your store has of increased profits.

Despite the exciting prospect of extra income, receiving a magazine display allowance is not as easy as it looks. You have to build a strong front end display and that alone entails some work. Placing the magazines in strategic positions near and around the check-out counter will almost guarantee instant attention from the customers.

However, that's the easy part. The much harder part is requesting the RDA itself. Because for every magazine (or periodical) that the retailer displays on his/her store there's the real work to be done -- inventory count, statement reviews, summaries, claim forms -- they all need to be completed before submitting a request for the RDA. You have to take the magazine volumes, the varying frequencies of the titles, the number of the publishers and the endless paperwork into account. Not to mention that this has to be done on a quarterly basis.

Retailers who attempt to do the RDA management themselves will end up bungling the job. First, they do not have sufficient experience in this field. Second, it's an arduous and overwhelming work. Third, managing the RDA could keep you from the more important job, which is selling magazines.

For the sheer complexity of RDA management, retailers need to enlist the services of a professional RDA administration firm.

An RDA administration firm is a third-party business entity which handles the invoicing and the magazine display allowance claims, as well as the allowance collections and the bunch of inventory counts and the whole paperwork. As a separate company, an RDA administration firm is not connected to any publisher; thus a separate contract should also exist between the retailer and the RDA firm.

Premiere Retail is one of the most trusted RDA administration firms over the past several years. We at Premiere Retail do not only manage your rebate claims in a timely manner, we can also offer you exceptional service with front-end merchandising and featured promotional needs.

Magazine display allowance or RDA is a big boost to retailers across the country. But if retailers hire a competent RDA administration firm to manage their rebate claims, they will even get to maximize their earnings potential and become more motivated to sell more titles.

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