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RDA Collections: If You Do Them Will You Get What You Should?

If you are a retailer, chances are you might have heard of the RDA collections. But if you are new to the retail business and you haven't heard of it yet, RDA means "Retail Display Allowance," which is a fee that retailers collect from displaying and selling goods in their stores. This means wholesalers can grant good incentives to retailers for selling their merchandise.

There is a magazine RDA too, where publishers grant incentives to the retailers for selling their titles. The RDA's paid to retailers usually account for 10% of the cover price of a magazine or a periodical. Not all publishers offer RDA's though, so look for a publisher that does offer it. However, please be reminded that not all publishers who dohave RDA's do not offer the same 10% incentive rate. Some publishers offer 5% or 8% of the cover price to retailers.

But no matter what, the prospect of the RDA excites the retailers because that means it's another way to increase their profit margin. So in an attempt to make the most of out it, retailers refuse to hire RDA management professionals because they think it will be a waste of time and money. Retailers are confident that they can manage the RDA transactions themselves so that they can save their resources to collect bigger incentives in the end.

The question is if you do the RDA collections as a retailer, will you really get what you should?

Bear in mind that managing RDA collections is not as easy as it sounds. In fact, collecting RDA's is pretty tough. Just the post-magazine sales accounting part sounds complicated already. Not just that, it also includes obtaining of contracts, tracking magazine titles qualified for the RDA reimbursement, recording of the titles sold, writing and submitting claims to the publishers, by following up concerning payments from the publishers, and so much more.

Besides, attempting to manage RDA collections will pull you out of your focus on selling magazines and improving magazine displays at your store, which you'd be better doing at.

If you hire an RDA administration firm, more than half of the burden will be taken off from your shoulders. Contrary to popular notion, working with a professional and experienced RDA administration firm will save you time, money, effort, and yes, headaches. It's because there's someone doing the RDA collections work just for you. RDA administration firms have years of experience to back them up, thus they are fully knowledgeable and competent to bring the results -- and the rewards -- just for you. All you have to do is to leave the RDA collections to work with them and turn your focus back on the selling and displaying titles in your store.

RDA collections are something not to be taken lightly because they involve a rather long and complicated process that is even frustrating at times. So if you're interested in making a lot more money but don't want to experience such frustrations, trust only the experienced and qualified professional RDA administration firms. They will do the RDA collections in a precise and timely manner so that you will receive payments as you should.

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