The Leicester Mercury has used cash made from an increase in cover price to reward the sales outlets that are so instrumental to its circulation success.

The price rise - the first for seven years - saw the cost to readers increase by 2p to 30p.

Backed by a big promotional campaign and a comprehensive range of marketing strategies, subsequent sales have defied industry research.

And despite the suggestions - that sales decrease when a cover price is applied - Mercury sales remained stable.

The newspaper has put key retailers in a position where the Leicester Mercury is now a far more profitable sale than any national daily newspaper.

The profit margin on the sale of a Mercury is now close to 30 per cent - compared to a maximum of 25 per cent with any of the nationals.

So at a time when newsagents regularly see their margins reduced, the Leicester Mercury has succeeded in providing its retailers with more profit.

Initially, each of the Mercury's 300-plus high-volume 'gold' retailers was given a personal laptop presentation demonstrating the benefits of the new price.

And in addition, the newspaper, which now features a top quality colour supplement on every day of its publication, offered prizes to the retailers who showed the most commitment to retaining its valued home delivered readers.

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