• Mediaweek, Friday, August 31, 2007 12:30 PM

Bauer Publishing, built largely on a low newsstand cover price, is about to boost the cost on most of its 11 titles as wholesalers pressure it in an effort to improve their profits. As a result, In Touch and Life & Style, which sell more than 2 million copies at $1.99, will jump to $2.99 while First for Women goes to $2.49 from $1.99 and Woman's World to $1.79 from $1.49.

The company's teen and soap opera mags will also see increases, with all to take effect in late October and early November. One recent study found that wholesalers typically lose money on magazines under $2.49 and some have made distribution cuts as a result. One insider at a top wholesaler says along with raising prices, Bauer will sell its magazines at a higher discount.

"I think they realized wholesalers weren't getting enough out of their margins to cover their costs," the insider says. "In our view, they've come a long way in terms of making their products more viable." For his part, Hubert Boehle, CEO of Bauer, says discounts have been adjusted in some cases, but he insists low-priced can be profitable for wholesalers.

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