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What Are RDA Collections?

RDA collections are payments that are made available to magazine retailers by magazine publishers for the retailer to display and sell the publisher's magazines in their store. provided that the retailers have signed the contracts with the publishers and/or national distributors and submit quarterly claim forms.

Most RDA collections that are paid to retailers account for 10% of the cover price or a pocket payment. But not all magazine titles pay and some pay less than 10%. So a retailer's RDA collection should be between 5% to 8% of its annual magazine sales at a cover price. If a retailer doesn't have the knowledge of title availability within the publisher and national distributor, the retailer won't get the revenues that they're entitled to.

Some retailers try to do the task of managing RDA collections on their own. What they don't realize, though, is that they may end up losing more money if they do the magazine RDA collections themselves. Instead of solely focusing on selling their merchandise, retailers may also have to track eligible magazine titles sold. Filling out the proper claim for reimbursement can be a difficult task.

What many retailers do to avoid the task of collecting their RDA payments is to hire an experienced RDA administration firm who can handle the job effectively for them. Retailers, of course, will want to have a contract with the RDA administration firm which is an entirely different, separate company from the publisher and the national distributor.

An RDA administration firm will produce a list of all eligible magazine titles for the retailer. They will then match the titles that the retailer sells with those that are eligible for the RDA reimbursement.

With the assistance of an RDA administration firm, retailers don't have to bother in tracking down eligible titles sold because the firm will do the work. The RDA administration firm then will list each title sold on the proper document claim. Next, the RDA administration firm will submit the claim forms or invoices to the publishers and/or national distributors. As implied earlier, the claim forms are submitted quarterly. The RDA administration firm will do everything possible to ensure the retailers that every magazine title sold is counted and calculated so that retailers will receive their collections or payments.

Retailers never have to worry about keeping track of their payments received because the RDA administration firm will do that for them. The firm will also do a follow-up on the payments that are due should they not arrive in a timely manner.

Retailers who outsource RDA collections to experienced RDA administration firms will see the many benefits and appreciate how this task eliminates several of their burdens. By assigning the RDA collections to third-party professionals, retailers can now focus on what they do best -- which is selling magazine titles and other merchandise -- instead of pursuing publishers for their RDA rebates. Contracting these tasks to a professional RDA administration firm will definitely remove the burdens from the retailers' shoulders, so to speak, because they will leave the RDA collections to these professionals who are more comfortable in doing the job.

If you are a magazine retailer who is having difficulty tracking down sold titles, filling out the proper claims for reimbursement, submitting them to publishers and tracking down payments, you can lay all these responsibilities on an RDA administration firm such as Premiere Retail Services Inc.

Retailers think that doing the task of RDA collections themselves will save them money, but in fact it is the opposite. Since they may not fully understand the process of this task, they may commit more errors which will translate into more expense or possibly losses if their claim forms are wrong. Hiring an experienced RDA administration firm who is thoroughly knowledgeable about RDA collections may cost retailers at first, but they will soon realize how much time and effort it will save, as well as unnecessary expenses in the future. A highly experienced and professional RDA administration firm such as Premiere Retail Services Inc. will do the task of RDA collections, giving the retailers a great value for their money.

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