News Corp has just issued their 2017 Annual Distribution Fee Review. The message is clear, what distribution agents received was an average increase equaling the inflation rate of about 1.5%, and that is it. What stunned me was that there was no increase in the monthly fee of $2.30. Just to put a stamp on a letter now has gone up from 70 cents to $1, add an stationery, printing, and handling cost and its clear $2.30 just does not cut it
The big question now is, can the circulation industry can in its present position with declining circulation, increase prices? The flip side, can it afford not to increase prices as with declining circulation, we are seeing a drop in return on investment as distribution has substantial fixed costs.
Having said that, any who deliver need to update their fee to the current rates, you can leave the postage/administration fee AS IS.
