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The Connection between Magazine Retail Display Allowances and Distribution

For retailers that display and sell magazines, the magazine RDA is an important part of their profit margin. The retail display allowance is an agreement made between the publisher of the magazine and the retailer. If the retailer displays the publication prominently, the retailer will receive a retail display allowance (or RDA) of 6% to 10% of the cover price.

What some retailers do not realize is that they can influence how much RDA they receive if they help the publisher’s magazines sell better. In other words, distribution is related to magazine RDA and magazine RDA is related to distribution. The connection between the two is inseparable.

Premiere Retail Services, Inc. understands this connection and wants to help retailers receive the funds owed to them. We can help train retail employees so they give the right magazines proper placement, which will increase the magazine’s sales. This can be accomplished in a number of ways:

  • Create a seasonal display of magazines related to cooking or crafts. Cooking and crafts are two things that go together no matter the holiday. Place the magazine displays prominently near the ingredients for the pie featured on the cover of the magazine. Situate another display rack of craft magazines near the craft section that includes items needed to create the crafts in the magazine.
  • Sports magazines often sell well but it is possible to help them sell better. Every state has football or basketball rivalries between in-state teams. Set up a display near the front of the store with sports magazines and rival team items. Of course, setting up a similar magazine display near sporting goods could increase your sales even further.
  • Major sporting events are also a great time to sell more magazines. Think about the Super Bowl game or the Olympics. Come up with ideas to capitalize on these events and any magazines related to them.
  • Think of other events during the year for which publishers choose to publish magazines. Weddings, back-to-school and income tax time are other events to consider special magazine displays to encourage sales.

Another part of what an RDA company does is to manage the collection and processing of RDA on behalf of the retailers. We ensure the retailer receives credit for each magazine sold of eligible titles. We then file quarterly claim forms on the store’s behalf and keep track of the payment to ensure the retailer is paid.

Handling Retail Display Allowance is not easy. Magazine publishers, like most businesses, want to keep funds as long as possible. In many cases, this means the publisher either makes RDA complex and time consuming hoping that the retailer will not pursue it, or it means they are slow about sending payments. Hiring a professional RDA management firm can make the task easier for retailers.

Obviously, if the goal is to sell more magazines, it is possible to do so by capitalizing on special events during the year. When a retailer sells more magazines, it is reasonable for them to expect higher RDA payments. The right RDA management firm can help increase magazine sales and ensure the retailer receives the RDA payments they deserve.

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