Press Financing: How to obtain a professional credit?

The concentration of the sector will continue and cause the decline of isolated professionals. The sector is organized around several poles.

  • Tobacco Press establishments hold 28% of the market share.
  • Press institutions account for 23% of sales in the sector. These establishments are generally under networks. They are booming.
  • Bar-press establishments also have a 23% share of the market.
  • The specialized department stores also offer press. They represent 6.5% of sales outlets.
  • Kiosks are in the minority with only 2% of outlets. There are currently 600 of them. They have difficulties to maintain themselves. Sometimes they complete their offer by the bookstore.

Open a press shop: the constraints

Open a press shop: the constraints

The courses are very different in this sector. The aid and public subsidies scheme provides for a 4-day training course in the press distribution profession. Excellent physical condition is required due to heavy handling, but also very wide time slots. Finally, given the difficulties of the sector, the professional must be a good manager.

An approval of the Commission of organization of the sale is obligatory to exercise. Once this approval has been obtained, the professional must be registered in the file of the sales agents of the High Council of press courier.

Numerous texts govern the distribution of the press, notably the law of April 2nd, 1947. These are decrees which fix the rate of the commissions granted to the distributors according to the network to which they belong. For the kiosks, these rates vary from 18 to 21%, for specialized stores they are between 14 and 18.4% in large cities, and between 13 and 14% in other cities. A rate of 10% is allocated for occasional, daily, thematic, complementary points of sale. Finally, the rate varies from 15.5% to 21% for “small area” professionals.

The press distribution sector benefits from a special VAT of 2.1%.

The management of a press point of sale

The management of a press point of sale

The press distribution sector is a difficult sector that requires a very consistent management. The professional analyzes the daily evolution of his turnover. It decomposes it on the one hand, by category of products out of press, as well as by references sold in the press. The number of references is important and can reach up to 1500 titles. Monitoring of press sales is essential for the management of unsold products.

The sources of revenue are varied. They come on the one hand from the sale of goods other than the press. The professional also receives a commission on the actual sales of newspapers. This commission varies according to its type of activity and sometimes also according to its geographical situation: in a big city or in a small locality.

These commissions are between 10 and 21% of the amount of sales.

In addition to these commissions, supplements are set by the various plans to support the profession. Thus, one of these devices allows distributors to collect 15% on sales of certain references. This plan benefits 13,200 professionals. A second scheme sets up another additional payment based on the results of the point of sale and its geographical location. This plan was put in place in 2006.

In the press distribution sector, press purchases do not constitute a charge, since the references are on deposit with the reseller. It restores the unsold and does not support loss.

Significant expenses are rent, especially in large cities.

Staff costs can also be significant especially in establishments of a certain size.

To succeed, you have to maintain a sufficient turnover. Especially poorly located kiosks can not guarantee the profitability of the activity.
Non-press activities must be strictly managed by ensuring that purchases are well controlled. Large stocks entail additional costs. In this sector, cash flow difficulties are frequent despite the cash payment of customers and the delays of non-press suppliers. The refund of unsold copies is not enough to avoid them. Rigorous treasury management is therefore crucial.

How much does a press business fund cost?

How much does a press business fund cost?

The fund can be valued at around 2 or 3 years of commissions. When evaluating, the location and profitability of the case should be taken into account.

Get a professional loan for a press shop

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The advent of the Internet has done a lot of damage to the print media for the benefit of the paperless press. Thus, the press broadcasters if they want to become permanent must modernize and diversify.

The installations are generally done by recovery. In this sector the location is the decisive criterion. The government modernization assistance program supports investment. This aid can reach up to 40% of the expenditure with ceilings according to the type of project. This is $ 5,600 for the modernization of the point of sale, which essentially concerns its layout. Finally, this ceiling is $ 4,500 for computer equipment.

It is advisable to favor the resumption of a press business because anticipation makes it possible to ensure the profitability. The contributions will have to be substantial and the bank will attach a great importance to the quality of the site.

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