Retail Sales (Firm Sale) - Regional Publications

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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. 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. Note - For the avoidance of doubt:

   1. Copies copies disposed of by the retailer (not provided to a consumer) do not need to be deducted from the claim

   2. Therefore the copies claimed will be the copies sold to the retailer intended for onward sales to consumers

2. The total trade discount must not exceed 60% of Basic Cover Price.

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. 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. The value (or perceived value) of gifts or cover mounts to the consumer have no effect on the price paid for ABC purposes.

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

4. Sales by retailers will be treated as sales at the cover price unless there is evidence to the contrary.

5. 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 as follows, which will be broken out on the ABC Certificate:

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

2.    By print and digital copies, and by combination with other circulation types. 

1. Retail sales will be reported combined with single copy sales.

Note: If you include Retail Sales of Special and/or Sports Editions these must be included in the Editions Analysis.

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.

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

   2. 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