What is RDA?
Retail Display Allowance (RDA), is an additional payment available to magazine retailers, provided that you have signed contracts, and submit quarterly claim forms. Most RDA payments are 10% of cover price, some retailers expect 15% for launch titles. The agreement is between the publisher and the retailer, with an RDA collection company typically acting as the collection agent for the retailer. 99% of direct vendors do NOT offer RDA and instead “pass it through” in additional discount to the wholesaler. Those publishers utilizing national distributors routinely offer RDA since the national distributor manages this for their clients. TNG does not supply RDA contracts to publishers, that must be done by them as these are legal and binding contracts.
What are National Distributors?
National Distributors are companies that serve as billing agents, circulation consultants and communication conduits to wholesalers for their publisher clients. They may also offer marketing services. Most of the larger National Distributors handle hundreds of publisher clients and have offices in most of our larger locations. The major National Distributors include CMG, Curtis Circulation, Kable News and Time Warner Retail. Coast-To-Coast and Disticor are the two National Distributors in Canada. The financial relationship with the wholesaler (TNG) would reside with the national distributor and not the publisher.
What outlets does TNG service and can I expect my publication to be in those stores?
TNG supplies the majority of grocery store and drug store chains throughout the USA and Canada. Different market areas have different customer mixes. However, the majority of our customers maintain an authorized list. In order for us to deliver a title to stores that have such lists, the title must be authorized in order for it to scan at the register. So a new publication will not experience broad immediate exposure. Typically, agencies that agree to test a new vendor’s publication will do so with a small initial copy commitment and if sales respond well, will then seek to gain approvals in more retail chains.
Do I need to meet the minimum requirements outlined in the purchasing agreement forms?
If I meet all the minimum requirements, will my publication be approved for regional buyer review?
No, not automatically, our decision is not based solely on terms, we review the sales potential as well.
How long does the set-up process take?
Normally between 4 to 8 weeks. New vendor submissions are reviewed by the national office at least once per month and sometimes twice, depending on the volume. After a publication is accepted for regional review, the publisher then solicits the regions that they have an interest in. Each region is unique and the timing may vary at this level.
If I don’t have a upc bar code on my publication yet, can I still submit it for review?
No, we require that a scannable bar code be already on the publication in order for us to review the title.
What does “cost” refer to on the magazine vendor application?
This is the amount per copy that TNG will be charged by your company and must correlate to the “discount” listed on the new title form. 60% discount on a $5.95 title equates to a $2.38 cost.
If I begin as a direct vendor and then opt to utilize a national distributor, what occurs?
More than likely, your upc code will change to meet the specifications of the National Distributor. However, your discounting will remain the same since our form clearly stipulates that the discounts offered are for the life of the title.