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Making Magazine Retail Display Allowance Work for You

Every retailer surely wants to earn big, that's why the magazine retail display allowance is a great potential to boost income. Magazines should be displayed at the front-end displays as well as near and around checkout counters. When the magazines are strategically placed in this manner, it will most likely prompt customers to pick them up, browse them, and eventually buy them while they are lining up at the counter to finalize their purchase.

Magazines are one of the most familiar items seen in almost every business establishment -- convenience stores, groceries, supermarkets, hypermarkets, drug stores, as well as family-owned retail stores. If you are a retailer and haven't sold magazines yet, you should stock them in your shop -- it could be a new, untapped source of boosting your profit margin.

So what exactly is a retail display allowance (RDA)? A retail display allowance, or RDA, is a reimbursement or allowance for the retailer's costs of selling the products of a vendor. Retailers receive the RDA through several different arrangements or programs. Generally, RDA's are given by the vendors to the retailers to reimburse the retailer's expenses in displaying the vendors' wares.

For example, a retailer receives a retail display allowance for selling the magazines, newspapers, etc. of the publisher, who is the one offering the RDA. Not all publishers offer an RDA, so if you're looking to boost your income, look for the ones who do offer it. Generally, RDA's offered are 10% of the magazine's cover price, but it may vary depending on the magazine title.

An RDA is a great financial incentive for retailers. The better the magazine sales, the greater RDA's they receive, is the reason retailers add more magazine titles to their stores.

But before you get too excited to apply for the RDA, remember that managing it is not as easy as it sounds. For one, you have to build a strong front-end display and that alone takes a lot of work. There are a several types of magazine and newspaper display stands and racks available, and some of them look attractive and built ingeniously. They come in several variations -- wire, wood, acrylic, metal, multi-pocket wall mount, file folder, and tabletop display racks, among several others. The stylish and modern designs of these magazine display racks as well as their strategic placing can attract customers into buying the magazines, and make a great way for increasing income.

But displaying the magazines is not even the hardest part. Requesting the RDA's from the publishers is much more complicated. For every magazine that the retailer displays, there are other jobs to be done such as inventory count, statement reviews, summaries, and then claim forms. These tasks should be finished before submitting their RDA request to the publisher. In addition, you're not that sure if the publisher will reimburse you promptly, and you're going to make follow-ups for the delayed payments.

In other words, receiving RDA's can be onerous and stressful, and this makes you lose your focus on what you do best -- selling magazines and the other products in your store.

That's why it's best to hire an RDA administration firm to handle all the convoluted process of getting your RDA's. It may be an additional expense when allowing a professional RDA administration firm, but the fact is that you will save money in the long run. 

Imagine if you try your hand at doing the RDA yourself even with no experience in an attempt to save some cash. Chances are you'll be committing costly mistakes which lead to unnecessary expenses. By hiring an RDA administration firm, like Premiere Retail Services, Inc., you're paying for their experience and professionalism in managing rebate claims -- from the paperwork to submitting the claim forms to following up on delayed payments.

Make the magazine retail display allowance work for you, not against you. By having an RDA administration firm to work with you, it will help you maximize your earnings potential while taking off the stress in managing rebate claims. When this is realized, this could be a motivation to sell more magazine titles.

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