Telegraph Media Group has significantly increased the cover prices of all its editions from 1 February. However, the group said the improved margin that retailers receive will be held back for six months until 1 August.
The company cited the annual payment cycle of subscriptions for the move, saying the cover prices do not immediately transfer to subscribers.
NFRN said the move is disappointing and can not be endorsed.
“This move will obviously be disappointing to many news retailers and the NFRN does not and cannot endorse margin reductions, particularly when our members are operating under such financially challenging operating conditions,” Stuart Reddish, national president of the federation, said.
The company said it is important to align retail margins with the subscription renewal structure to remain competitive against rising newsprint and distribution costs and to enable investment in gaining subscriptions and supporting retailers.
Reddish urged retailers to make use of the publisher’s subscriptions-first strategy.
The Telegraph has been running an exclusive offer for NFRN members rewarding them with £50 for every subscription they secure.
“I would urge members to get behind this opportunity to guarantee long term revenue by converting new and existing Telegraph readers into subscribers. Converting one customer into a seven-day subscriber will earn you £50 plus the margin you will earn from the sale,” he said.
The price of the weekday, Saturday and Sunday newspapers has now increased to £2.50, £2.80 and £2.50 respectively.
