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Watch Profits Increase with Magazine Retail Allowance

Many retailers in the country are selling magazines and for this they can receive magazine retail allowance or Retail Display Allowance (RDA) for the magazines that they display and sell in their store.

RDA has been a part of the magazine industry for several decades. It was created and developed as an incentive for retailers to add new titles to the line of magazines they are selling. Not all publishers offer RDA to retailers; nevertheless, it still plays an important role in launching new titles and adds a small profit margin to every magazine sold.

There are thousands of magazines available at newsstands and checkout counters. Many of them offer the retailers an RDA or magazine retail allowance. In most cases, the RDA amounts to an additional 10% of the cover price. The RDA can be available straight from the publisher or from a national distributor upon the presentation of claims.

RDA is a wonderful idea because it encourages many retailers to sell more magazines, and of course earn more profits for their business. In their desire to save expenses in order to earn more money, the retailers attempt to collect RDA's themselves. But instead of saving more money, the retailers end up spending more just to correct their errors in performing this task.

Why? It's because they lack sufficient knowledge for collecting RDA. It sounds easy at first but it is actually involved and complicated. Many retailers who attempt to collect RDA on their own become frustrated by its complexity. One of the things that retailers find difficult about this task is the handling the overwhelming volume of publisher contracts. These are time consuming and mean they cannot do what they do best -- selling magazines and other items in their stores.

In the end, they either give up altogether or miss out on the potential profits. Some retailers choose to hire someone who is more experienced in this field to handle the tasks associated with magazine retail allowances.

If retailers want to watch their profits increase from magazine sales, they can avail the services of an experienced RDA administration firm such as Premiere Retail Services, Inc. We can help the retailers towards greater profits. Remember that the RDA firm is a separate company and is not a part of the publishing company.

By hiring an experienced RDA firm, retailers won't have to worry about doing this task each quarter. The RDA firm will make sure retailers get their rebate claim forms turned in promptly. What happens if the publishers don't send the retailer's payment on time? The RDA firm will do a follow-up to ensure the funds are received.

The firm will receive the payment from the publisher (or national distributor) then takes their own portion from what they receive. The rest is sent to the retailer. The retailer doesn't have to be concerned with sending payments to the RDA firm, which saves them time and money.

The RDA firm handles all the contract arrangements between the publisher and the retailer. They track the magazine sales, prepare the RDA invoicing, as well as handle collections. Since the firm does the RDA task, the retailers focus on what they do best -- to display magazine titles and sell them. The retailers won't need to chase down publishers for the rebate claims and all the tremendous volume of paperwork. With magazine retail allowance the help from an RDA administration firm, retailers will just watch profits increase and will be further encouraged to display and sell a wider range of magazine titles.

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