Newspaper Price Hikes Make Their Mark On Sales

The recent spate of cover price rises in Britain’s quality national newspapers has reduced the impact of undercutting, with all four titles now hovering around the 60p mark. However, changes to pricing can have a knock-on effect to sales.

The Times was the latest national newspaper to adjust its cover price, adding 5p to its total earlier this month to reach 60p. The increase ended years of undercutting by the newspaper, which had previously been the nation’s cheapest daily quality title for 11 years.

The rise was the second by the title in just five months, with a previous increase in April taking its price from 50p to 55p. An increase of 5p on cover price equates to roughly £10 million in extra revenue on full rate sales alone.

Analysis of the Times‘ circulation figures both before and after the first price change sees the paper experience a slight dip in total sales in the two months immediately after the price rise, although this ground is soon recovered, with total sales in the third month following the change reaching their highest point since June 2002.

The figures make interesting reading, but it is difficult to draw conclusions from these alone, as so many other factors come into play, including promotions, special content, special offers and competitive activity.

Analysis of the Times‘ full rate sales shows an even more positive story, however, with the paper’s total rising slightly in the month following the change, before gathering momentum to reach its highest figure since April 2000.

The Times‘ experience is not always replicated following a price hike, however, as demonstrated by the Independent‘s latest cover price change. The title’s rise from 60p to 65p in May was immediately followed by a dip in both total sales and full rate sales, a situation which has yet to reverse.

Both the Guardian and the Daily Telegraph saw a similar performance for full rate sales following their last price adjustments, with an immediate dip which did not quickly recover within the following few months. In the case of the Guardian, full rate sales have yet to return to pre-price change levels, despite an upturn in September and October 2001.

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