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RDA Collections Aren't As Easy As You May Think

Retail Display Allowance (RDA) are collections in the form of cash. RDA collections are paid to retailers in exchange for displaying and selling a magazine company's title.

RDA is a way for these companies to obtain better placement in magazine retail racks in retail stores. When a publisher has better retail placement, the more copies it is likely to sell. The more copies a publisher sells due to its good placement, the more retail display allowance the retailer is owed. Conversely, when a publisher has a poorer placement and positioning in retail store, its copies are less likely to sell unless the title is well known. From that, the less RDA collections retailers will be received.

It may sound easy, almost like all retailers have to do is to expect RDA collections from publishers. But the truth is obtaining RDA collections is not as easy as you may think. In fact, the process can get complicated when retailers sell a large number of magazine titles as well as suppliers and publishers. The task can become confusing and frustrating at times. That is why retailers often hire a third party to handle RDA collections. This is mostly done through outsourcing. Most magazine retailers outsource RDA collections to professionals, like Premiere Retail Services Inc., who specializes in this kind of collection.

Outsourcing RDA collections to professionals brings in many benefits for the retailers. By contracting out the RDA collections to professional third parties, retailers can concentrate on what they do best -- selling magazine titles -- instead of chasing down publishers to get their RDA collections. Availing the RDA collection services of these professionals definitely removes the burden from the retailers' shoulders, so to speak. They will leave the RDA collections up to those professionals who are comfortable with the task.

When retailers do the task of RDA collections, they may not fully comprehend the process. Thus, they may commit errors in handling them, leading to more expenses. In order to cut costs, retailers seek the services of a professional collections firm so the retailers will not have to worry about not understanding the RDA collections process. Collection professionals have the experience and know the ins and outs of this task. Therefore, hiring these professionals gives the retailers more "bang for their buck."

Retailers should do a little research first before hiring a professional collections firm. What qualities does a good collections firm have? First of all, it should be have many years of experience in handling RDA collections. It should be proven and have a good reputation. A good collections firm must also have the total trust of its clients. Retailers should schedule an interview with every potential collection firms before hiring one.

Magazine retailers who want returns from publishers don't need to be bothered with RDA collections when they hire an outside firm such as Premiere Retail Services, Inc. This will allow retailers to focus on their priorities -- selling magazines, concentrating on their core competencies -- while increasing the rate in which they are paid for their superior RDA collections.

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