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  4. Retail Sales (Firm Sale) - Business Magazines

Retail Sales (Firm Sale) - Business Magazines

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Retail Sales (Firm Sale) [Print/Digital]

A copy sold to a retailer, on a firm sale basis, intended for resale as a single copy to a consumer.


Principles

1. Single copy made available for purchase by the consumer from the retailer

2. Copies are purchased from the publisher by the retailer, on a firm sale basis, either direct or via the distribution chain (typically distributor and/or wholesaler)

3. It must be clear that the price paid by the consumer includes the publication

4. The retailers’ ability to vary supply must not be unduly restricted


Requirements 

1. Single copy made available for purchase by the consumer from the retailer
  1. Contractual arrangement with the retailer must make clear that copies are for resale to the consumer.

  2. The purchase by the consumer may be in cash or by other means agreed by ABC in writing.

  3. You cannot claim back issue sales to the retailer.

Guidance Available

2. Copies are purchased from the publisher by the retailer, on a firm sale basis, either direct or via the distribution chain (typically distributor and/or wholesaler) 
  1. ‘Firm sale’ means that unsold copies are not returned or reported for credit.

  2. You must account for sales on an issue by issue basis.

Guidance Available

3. It must be clear that the price paid by the consumer includes the publication
  1. If a voucher from a publisher controlled promotion is used the amount paid by the consumer is deemed to be the total of the cash paid to the retailer and any cash they paid for the voucher.
  2. You can ignore the value (or perceived value) of any gifts, or other incentives. However:

    1. Cash reimbursements to the consumer must be taken into account.  

  3. You must retain details of promotional or special offers during the reporting period.

  4. Copies sold to the retailer can be claimed as retail sales unless there is evidence to the contrary, in which case claims should be adjusted as follows:

    1. The retailer distributes copies free to the consumer (these should be removed from claim)

    2. The consumer makes full payment using a voucher from a publisher-controlled promotion (these should be removed from the claim).

      For the avoidance of doubt: copies disposed of by the retailer (not sold to a consumer) do not need to be deducted.

Guidance Available

4. The retailers’ ability to vary supply must not be unduly restricted 

No additional requirements.

 


Reporting

You will report the following, which will be broken out on the ABC certificate:

1. By print and digital copies. total retail sales (combined with single copy sales) for the Audit Issue for UK and Other Countries.

 


Guidance

G1. Single copy made available for purchase by the consumer from the retailer
  1. Cash means legal tender notes and coins, cheque, credit/debit card, wireless payment systems.

  2. This doesn’t preclude a retailer selling more than one copy to a single purchaser (without the publisher’s knowledge). 
G2. Copies are purchased from the publisher by the retailer, on a firm sale basis, either direct or via the distribution chain (typically distributor and/or wholesaler)
  1. You will need to ensure all records required to support the retail sale claim are available for audit. This will include: 
    1. Full issue by issue details of all financial records and contracts with distributors, wholesalers and retailers, with specific regard to normal and recognised trade terms. These must be reconcilable to the distribution records on an issue specific basis and to the average retail sale claim.

    2. Details of any change in trading terms from firm sale (if allowed) to sale or return (either temporarily or permanently) or vice versa.

    3. Details of discounts or special offers.
G3. It must be clear that the price paid by the consumer includes the publication
  1. As the price paid may be affected by promotional schemes you should keep details of purchases and promotional spends so you can demonstrate copies are purchased and that sales under incentives/offers are classified correctly, or disallowed as necessary.  You can contact ABC for confidential advice, supplying copies of the promotional material and offer wording.  The information kept may include:

    • Title/s involved
    • Issues involved
    • Duration of promotion
    • Retail outlets involved
    • Wording of the promotion displayed at the retail outlet/s
    • How the resultant copies are claimed
    • How the promotion will be paid for 
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