Regional publisher Johnston Press has come under fire from newsagents after a series of cover price rises which the retailers say have cut their profit margins.
More than 30 JP-owned titles increased their prices this week as part of the second phase of relaunches of all 170 of its paid-for newspapers.
However the National Federation of Retail Newsagents claims the publisher has not passed on the full benefit of the cover price rise to its members.
It says profit margins have been cut by as much as 8.4pc and has accused JP of flouting “industry protocols.”
The cover price rises have accompanied the roll-out of new templated designs to a further 37 JP titles as part of the relaunch project.
Among the titles that have increased their prices are the Wigan Observer, Chorley Guardian, Leyland Guardian, Lytham St Anne’s Express, Morecambe Visitor, Banbury Guardian, Leamington Courier and Kenilworth Weekly News, which have all gone up 15p in price.
Weekly newspapers which have seen 10p price rises include the Leighton Buzzard Observer, Luton News, Dunstable Gazette and Biggleswade Chronicle, while Preston-based daily the Lancashire Evening Post is due to increase its price by 5p from Monday.
The NFRN says that while the price of the Leighton Buzzard Obsever, for example, has increased from 55p to 65p, the newsagents’ profit margin has been reduced from 26.25pc to 17.77pc.
According to the federation, this means that while the newsagents previously made 14.4p for every copy sold, they now make 11.5p.
NFRN president Alan Smith said: “Johnston Press has failed to acknowledge industry protocols in unilaterally slashing retailers’ margins, to the detriment of the regional press as we know it.
“If they think these cuts can be used to finance their online strategy without a fight, Johnston Press is gravely mistaken. We will be communicating these cuts to all of our members.
“We will be asking what part wholesalers played in allowing this to take place. It is unsustainable to continuously slash retailer margins whilst simultaneously imposing carriage charge hikes.
“Such action sounds the death knell of the industry and publishers and wholesalers must start conducting their business in a sustainable manner if they don’t want the industry to fail.”
Johnston Press has so far not responded to requests for a comment.
Below is a selection of papers affected by the cover price rises together with what the NFRN says are their revised profit margins.
Wigan Observer
Was 80p Now 95p.
Margin Was 37.00pc Now 31.16pc
Leighton Buzzard Observer
Was 55p Now 65p
Margin Was 26.25pc Now 17.77pc
Hemel Gazette
Was 60p Now 65p
Margin Was 20.43pc Now 18.86pc
Berkhamstead & Tring Gazette
Was 60p Now 65p
Margin was 20.43pc Now 18.86pc
Chorley Guardian
Was 70p Now 85p
Margin was 37.57pc Now 30.94pc
Leyland Guardian
Was 70p Now 85p
Margin was 37.57pc Now 30.94pc
Morecambe Visitor
Was 80p Now 95p
Margin was 37.50pc Now 31.58pc
Luton News
Was 60p Now 70p
Margin was 22.00pc now 18.86pc
Dunstable Gazette
Was 60p Now 70p
Margin was 22.00pc Now 18.86pc
Banbury Guardian
Was 55p Now 70p
Margin was 22pc Now 17.29pc
Daventry Express
Was 60p, Now 65p
Margin was 22pc Now 20.31pc
Rugby Advertiser
Was 50p, now 55p
Margin was 22pc Now 20pc
Harborough Mail
Was 65p Now 70p
Margin was 22pc Now 20.43pc
Lytham St Annes Express
Was 65p Now 80p
Margin was 22pc Now 17.87pc
Leamington Courier
Was 60p Now 75p
Margin was 22pc Now 17.60pc
Kenilworth Weekly News
was 60p Now 75p
Margin was 22pc Now 17.60pc
Biggleswade Chronicle
Was 50p Now 60p
Margin was 20pc Now 16.67pc
Lancashire Evening Post
Is 55p Will be 60p
Margin was 24pc will be 22pc
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Greedy JP they appear to be sliding very fast, so sad for newsagents and local people
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Wouldn’t it be nice if the NUJ had the guts to follow the NFRN by saying: “If they think these cuts can be used to finance their online strategy without a fight, Johnston Press is gravely mistaken. We will be communicating these cuts to all of our members.” Instead the NUJ meekly allows JP to slash its workforce, contract-out to India and Romania and allow its chief exec to actively pursue less newspaper sales. My most recent communiqué from the NUJ is an email informing me of a pro-Palestinian film showing at my local independent cinema.
Come on NUJ, do your JOB!
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Why is it whenever Johnston Press is mentioned nowadays, the heart sinks?
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“Johnston Press has so far not responded to requests for a comment.”
No news there then.
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My paper was one of those that moved from daily to weekly earlier this year. Our poor newsagents are now really struggling. One of our best recently estimated that his overall takings are down by 25 per cent since we went weekly. In the past I have heard him flogging copies of the paper by telling customers what a great story there is inside / what free offers we have on etc. Now he’s so fed up he doesn’t bother. He just sticks the papers on the counter and lets them sell themselves.
Why, oh why, JP would you want to annoy the very people whose job it is to sell your product? Did you think they wouldn’t notice? They are not stupid. Typical short-sighted behaviour from management yet again.
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The NUJ is probably the most ineffective of all the unions and it has always been that way.The profession has never needed a competent union as much as it does today. I suggest that the NUJ hierarchy study UNISON and learn the meaning of an interesting word. That word is comradeship.
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Can’t say I’m overly concerned with the newsagents’ margins being squeezed when JP are squeezing everything else with job slashing and job exporting on an almost daily basis.
The alarming thing is the apparent willingness to jettison readers when readers are leaving them in droves as it is.
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That’s right – just at the time when you need the newsagents on your side to explain why you need to raise cover prices you go and alienate them by cutting their profit margin! Good way to get newsagents’ co-operation in these difficult times. Remember JP without newsagents you’ll find it hard to sell newspapers – bang goes the business.
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The sooner JP drop the word Press from their name the happier they’ll be. The entire strategy seems to hinge on driving down printed papers and heading towards some ill-conceived online nirvana.
Pay walls won’t work, the BBC’s investment to their web sites has made sure that no one will ever pay for news online. Online advertising currency is a fraction of what you can earn in print and the audience is too promiscuous to maintain brand loyalty. So where exactly do JP think they will earn the money they will need to invest in the journalism they will depend on, in order to create any sort of advantage or USP for their online business?
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Will the evening post’s price rise again when it becomes a weekly next year?
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Not forgetting Saturday edition of the Yorkshire Post, two weeks ago went from £1.10 to £1.40. Absolutely no explanation in the paper – rising newsprint, cost of production, etc just a promo for taking a subscription. We’ve also seen the Huddersfield Examiner leap to 55p recently too.
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I’d rather the company is cash retained, rather than overpaying newsagents who rely on us papers for a good chunk of passing trade who will buy other items. We have all taken a financial cut – in the past 3 years our JP salary has significantly reduced as it hasn’t risen with inflation. Not to mention the extra workloads, newsagents haven’t been affected at all unil now.
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so…..JP increase cover prices and do not pass on any of this to the news trade, however the absolute pence per copy stays the same.
Why should a publisher pass on any of the cover price increase to the trade, it’s not as if the newsagents costs have gone up…..
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I’ve never been a fan of newsagents, so I’m not concerned if their margins are squeezed for slapping a bundle of papers on their counter and living off our backs. What is a concern is the effect on hard-hit readers.
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And all in the week when the Morecambe Visitor launched a ‘save our local shops’ campaign.
Who said irony was dead?
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Johnston Press have managed to alienate their readers, advertisers, print workers, digital teams, advertising managers, journalists, bankers, shareholders….and now the clients who sell their products.
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I would not even pay 10p for the Banbury Guardian!
I know that many people are now not going to buy this paper, especially as it is just full of adverts and is very poor value.
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