The Guardian ups prices and cuts percentage terms 

The Guardian is increasing its cover prices and cutting percentage margins for retailers, costing the average retailer an estimated £17 in annual profit. A letter sent to stores by The Guardian confirmed that from 6 January, prices on all editions of The Guardian and the Observer will increase by 20p. 

This will make Monday-to-Friday’s Guardian £3, while Saturday’s edition of The Guardian and the Observer will be £4 each. Combined with the 30p increases on all titles in April 2023, this means that the Guardian and Observer have increased prices by 50p in the past nine months – a 20% increase on the Monday-to-Friday edition. 

This will mean increases in pence margins of 1.3p on Monday-to-Friday editions of The Guardian, 2.2p on the Saturday editions of The Guardian, and 0.6p on the Observer. However, percentage margins will fall on all three titles. 

The Saturday edition of The Guardian’s margin will drop by half a percentage point to 20.5%, and the Monday-to-Friday editions and the Observer will fall by one percentage point each, to 20.5% and 22%, respectively. 

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The Guardian no longer submits sales data to ABC, but assuming sales decline in line with the industry average, Better Retailing’s calculations show this margin cut could be costing retailers as a whole £16,087 per week. 

The letter sent to stores confirms that there will be “no change to EMU [enhanced margin uplift] payments” – given to retailers using the PaperRound software. These stores will receive effective margins of 21.5% on weekdays, 21% Saturdays and 22.8% on Sundays. 

This “no change to subscription payments” means PaperRound retailers using The Guardian’s EMU scheme could be pocketing 3.8% more profit than other stores. The EMU scheme is a margin-boost programme available to retailers selling The Guardian and the Observer on subscription through i-movo vouchers. 

Trudy Davies, of Woosnam Village News, told Beter Retailing The Guardian was “cutting its own throat” with this increase. She said: “The Guardian has waited for the very first opportunity to increase prices in 2024, and I’m not happy about it. They will lose customers, and they want retailers to absorb the comments and complaints those customers have. 

“The money we collect for The Guardian is increasing, and our card fees and bank fees with it, and we’re seeing none of that back.” 

Following this announcement, national president at the Fed Muntazir Dipoti wrote to Better Retailing regarding the ongoing trend of cutting margins and raising prices – a policy which he describes as “wearing thin” with Fed members. 

As national president of the Fed, my commitment to the news category is high, as you might expect. However, I need to forewarn the publishing fraternity that something must change in 2024, as current policies are wearing thin with an increasing number of our members. 

We are currently going through an end-of-year cycle of newspaper cover price increases that, despite my endeavours to reach out and prevent it, only continues to follow a trend. 

Sadly, only a minority of publishers recognise the hard work and efforts retailers put in, while the majority continue to slice margins and give copper, rather than the silver, pennies that are due. 

While we understand the justifications given, newspapers need to be more respectful of the loyalty that retailers continue to give every day when they are making decisions and be more creative in preventing the evident sales drop off and reader dissatisfaction. 

News publishers have to listen, but, more importantly, they have to change their mindset and become competitive in retail like other categories are. If not, the race to the bottom and herd mentality will speed up retailers exiting the category. 

This will further play into the hands of the online fraternity in their own businesses, who happily get paid from the same pot yet choose to forget the key role physical copy plays, the fantastic heritage it has and the importance it still holds for the population at large.

Muntazir Dipoti National president, the Fed 

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