Retail Sales (Firm Sale) - National Newspapers

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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 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. Contractual arrangement with the retailer must make clear that data of sales to consumers must be made available to ABC on request.

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

4. 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. The total trade discount must not exceed the current published newstrade margins.

3. If you make any reciprocal payments, or the retailer makes any reciprocal charges for goods or services as part of the deal (for example: for distribution or marketing) then you must take these into account when calculating whether the trade discount exceeds this level.

4. Where you sell copies of a publication directly to a retailer on both a firm sale and sale or return (or limited sale or return) basis, then the trade discount must be the same for each.

5. Copies can only be claimed in relation to retailers that have not previously received supplies of national newspapers on a Sale or Return basis, either directly from the publisher or from one or more of the following wholesalers:

   1. Smiths News

   2. Menzies Distribution

   3. Newsflash

   4. EM News (Belfast), EM News (Dublin)

   5. Newspread

   6. Independent News & Media Ltd

   7. Dash of Redruth

   8. News UK Distribution Ltd

   9. Whites (Isle of man)

   10. Le Gallez (Guernsey)

   11. Jersey Evening Post (Jersey)

6. The claimed total average Retail Sale (Firm Sale) must be limited to a cap based on the publication’s claimed Retail Sale (Sale or Return) for the relevant Reporting Period, as set out in the following table:
   
   

   Retail Sale (Sale or Return)	Firm Sale cap
   0 – 200,999	4,000
   201,000 – 400,999	8,000
   401,000 – 600,999	12,000
   601,000 – 800,000	16,000
   801,000 – 999,999	20,000
   1,000,000 – 1,249,999	22,500
   1,250,000 – 1,499,999	25,000
   1,500,000 – 1,999,999	27,500
   2,000,000+	30,000

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

Guidance Available

3. It must be clear 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 gifts or cover mounts to the consumer. However cash reimbursements to the consumer must be taken into account (excluding limited low chance lottery style promotions).
   
   
3. You must retain details of promotional or special offers during the reporting period.

Guidance Available

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

No additional requirements.

Reporting

You will report Retail Sales (Firm Sale) as follows, which will be broken out on the ABC Certificate:

1. By print copies by geographical type:

1. United Kingdom;

2. Scotland - as a subset of UK;

3. England, Wales & N. Ireland – as a subset of UK;

4. Republic of Ireland (ROI)

2. By digital copies by geographical type:

1. United Kingdom

2. Republic of Ireland (ROI)

3. By print and digital copies, and by total average circulation over the period

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).

3. Details of sales to consumers made available to ABC on request may be in the form of EPOS reports or other means such as signed third party affidavits.

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 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