Why is RDAC needed?
It is difficult for retailers to do for themselves
because of the tremendous volume of publishers contracts that are time consuming and thus require the knowledge and past experience of
professionals who have been involved in these collections.
Publishers are not anxious to reduce their own funds and so have made RDA complex and time consuming to collect and account for.
How Does it work?
There are thousands of magazines available at newsstands many of them offer the retailers a Retail Display Allowance (RDA). In most cases, this amounts to an additional 10% of the cover price. The RDA is available directly from the publisher or national distributor upon presentation of claims.
To participate in this program we must request an RDA contract from the publisher/national distributor. This involves as many as 15 publishers or national distributors depending on the number of magazines being solicited.
After we receive and sign the contracts, we return them for ratification. Upon acceptance by the publisher or national distributor we electronically send claims on a quarterly basis and reports the draw/sales figures for that period. This information is available on computer printouts by request from the wholesaler. After receiving the claim the publisher or national distributor will make the payment to the retailer. We will track these payments and bill quarterly. We will also handle any audits by the publisher/national distributor
What are the benefits?
The retailer receives additional margins and profits: The wholesaler has happier customer accounts.
What is the bottom line?
For a service fee based on the claims submitted, we handle the entire process. You need only sign a contract with us and give us "third-party authorization" to be a participant in a RDA.
Checks will come from us and we will bill you quarterly. We Do All The Work.
We: solicit the RDA contracts, get the sales reports, prepare, submit and file the claims. You: collect all the money and pay us our fee.