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Getting a handle on contracted distribution fees

Trimming excess costs from circulation operations without jeopardizing customer service is a pressure all newspapers face.

For papers that contract out their delivery services, distributor fees represent a large portion of the cost. But legal hurdles make it difficult for circ managers to establish fair, but efficient, contract fees across a wide spectrum of distributors.

As a result, newspapers are forced to rely on the expertise of the few managers who have direct experience as contractors to base their fees.

While this approach is common, its not always the most efficient way to realign costs and resources. In many cases, because contracts are negotiated over months, years or even decades, different managers with different perspectives may arrive at varying fee targets.