Subscription Rates
Last updated
Last updated
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The term “subscriber rating” refers to setting up subscription rates (i.e., what you will charge subscribers for receiving the paper). In subscriber rating, amounts are linked with a set of rules and defined by payment lengths (for example, 25.00 for 13 weeks) to form rate terms. The rate terms are then linked with a rate code, and the rate code is linked with the rating rules to form the rate.
Publication Rule
Publication
Tribune
Subscription Rule
Delivery Type Delivery Schedule Source Code Reason Code Days Stopped
Mail Mon-Fri Promo New 30
Occupant Rule
Occupant Type
Student
Payment Rule
Payment Type
Credit Card
Location Rule
Dwelling Type AAM Zone ZIP District Route Census Tract City County State Country Delivery Placement
Apartment City 55433 North East Route 07 0 Hopkins Hennepin MN US Door
In some cases, a subscriber may be eligible for two rates, each with a “particular” rule. For example, let’s say a subscriber has a delivery type of “mail” and a dwelling type of “apartment”, and therefore qualifies for two rates, as follows:
Rate 1
All Dwelling Types
Rate 2
All Delivery Types
Apartment
In these cases, Circulation defaults the rate by consulting a rule hierarchy. It first gives priority to promotional and reduced rates (as defined in the rate term). It then goes down the rules (and items within each rule) in hierarchical order, defaulting the rate with the highest “particular” item for which the subscriber is eligible).
The rules and items listed in the tables above are in the correct hierarchy (Publication first, Subscription second, etc.). In our example, Delivery Type (in the Subscription Rule) is above Dwelling Type (in the Location Rule), so Rate 1 would be assigned to this subscriber. Rule hierarchies apply to account rates as well.
The hierarchy is used to default rates during starts, billing changes, and other transactions. You can override the default and enter a different rate, even if the subscriber does not qualify for all of the rules. However, in order to qualify for the rate, the subscriber must at least have the same publication, delivery schedule and delivery method as defined in the rate.
The procedure for setting up subscriber rates is shown in shown and explained below.
The first step is to set up rules for all of your rating combinations (i.e., the publication, subscription, occupant, payment and location rules).
The next step is to set up rate codes, which define certain attributes of rates (such as the rate type, renewal message, start date and end date).
The third step is to link the rules with the rate codes. This step is required for all rate types except “retail” and “free” rates.
Finally, you must set up different terms for each rate. Terms specify the various payment lengths and amounts for each rate code. A rate code can have many terms (e.g., 13 weeks, 26 weeks, 52 weeks, etc.) or just one term (e.g., 13 weeks only).
Newspapers commonly offer discount rates to new subscribers, specific types of subscribers (such as seniors), or subscribers who buy long subscription terms. To handle discounting, Circulation uses three special rate types: promotional, reduced, and retail. Free days can also be attached to a rate.
Promotional rates are used primarily for new subscribers and are only temporary. After the first subscription term, subscribers are automatically “stepped up” to a different rate—the one in the Next Rate field of the promotional rate code. So, you could have a promotional rate called “1/2-off”, which has a normal Next Rate of “DS”. After the first subscription period, subscribers with the “1/2-off” rate will step up to “DS”.
Reduced rates are “permanent”—a subscriber with a reduced rate will only be given a different rate as a result of a billing change, change in rating rules, etc. In the case of reduced rates, the Next Rate field is used only to calculate the discount (Circulation keeps track of subscriber rate discounts). So, if a reduced rate called “student” offers 13 weeks for 30.00, and its Next Rate, “DS”, offers 35.00 for 13 weeks, Circulation would treat it as a 35.00 subscription with a 5.00 discount.
If a normal rate itself includes discounts (typically for longer subscription terms), you can use a retail rate as the Next Rate in order to create the discount. For example, look at the rates below.
1 Day
0.33
0.33
1 Week
1.85
1.85
6 Weeks
6.5
6.5
13 Weeks
11
13
26 Weeks
20
23
52 Weeks
35
44
“DS” is a normal rate whose Next Rate is the retail rate “DSret”. For smaller rate terms such as 6 weeks, the rates are the same. But for terms of 13 weeks or longer, “DS” has a discount. So, a “DS” subscription of 26 weeks would be seen by Circulation as a 23.00 rate with a 3.00 discount. Note that retail rates cannot be assigned to subscribers directly or used in rule-rate links; a normal rate will never “step up” to a retail rate. Their only purpose is to define discount amounts for normal rates. Also note that if there were a 52-week promotional rate of 31.00 in this example, the discount on the promo rate would be based on the retail rate (44.00) rather than the normal rate.
Free days work independently of other discounted rates. Free days can be given at the beginning or end of a subscription period and are not amortized with the rest of the subscriber rate. For example, if a subscriber receives 7 free days at the beginning of the subscription period and stops after 6 days, the subscriber should be refunded the entire payment amount.
To accomplish this, Circulation actually creates two subscription periods for the subscriber: one for the free days and one for the rest of the term. The “free days” period will have a per-copy rate of 0 and a discount amount; it will use the rate code entered in Free Rate Code to determine the discount GL account. The paid rate will have a standard per-copy rate and no discount. This all happens behind the scenes; in Customer Service, the subscriber will appear to have only one subscription period. The only indication of a discounted rate being used is that, during the free days, the subscriber will be assigned the rate code entered in Free Rate Code.
Note: Free days can only be used with weekly rate terms. Also, free rates cannot be used with percent-by-day rate terms or with combo rates.
Refer Deprecated feature section - Marketing Terms
You can set up multiple rates in a sequence, known as a “rate chain”, by having the promotional rate step up to a different promotional rate, which then steps up to a normal rate after the second promotional term. For example, new subscribers could be given a “1/2 off” promotional rate for 13 weeks as an incentive to subscribe. After the initial 13 weeks, they could be stepped up to a “1/3 off” promotional rate. After the second subscription term, you could have the subscriber step up to a permanent, normal rate. You can chain as many rates as you like.
This rate chain example requires three rate codes to be set up, as shown in the following table.
1/2 off the full price
“halfoff”
promo
13 weeks
“onethirdoff”
1/3 off the full price
“onethirdoff”
promo
13 weeks
“fullprice”
full price
“fullprice”
normal
Could be any valid rate term.
“fullprice”
The subscriber would receive these rates as follows:
Since the Next Rate must always be set up previously, you should create these rates in reverse order. For example:
Set up the “fullprice” normal rate first, with a Next Rate of itself.
Set up the “onethirdoff” promotional rate, with a Next Rate of “fullprice”.
Finally, set up the “halfoff” promotional rate, with a Next Rate of “onethirdoff”.
For instructions on how to use the Rate Chain option, see Creating Rate Chains.
Note: A rate cannot step up to a fixed rate (see below).
It is possible to set up subscriptions with fixed end dates. This feature is useful for offering a “teacher” type of subscription—a fixed price for the entire school year. Teachers can start the subscription whenever they want, but the end date is fixed (coinciding with the last day of the school year). Teachers typically receive a significant discount for such subscriptions (e.g., 20.00 for the entire school year, paid in advance), but subscriptions are not extended for any reason, and any balances remaining at the end of the period are not refunded. All starts within the period for which the rate is valid will end on the same date and cost the same amount.
Fixed rates are set up on the Rate Fixed Term tab, which is accessible for all normal rates that are non-refundable.
When entering a new start for a fixed-rate, fixed end-date subscription, the Billing Method field will be populated with “office pay,” and it cannot be changed. Also, the Renew After This Term checkbox will be set based on a Business Rule, When entering a fixed term start, what is the default answer to “Renew after this term?,” which is in the Customer Services section.
If you offer day pass subscriptions (see the User Manual), you must set up day pass rates separately from your standard subscription (term) rates. For day pass rates, the Subscription Type field on the Rate Code tab must be “Day Pass”, and rate terms are defined for a term type of “Day”. For single day passes, define a term length of 1 day. For day pass bundles, define terms for lengths greater than one. For example, if you offer single day passes and bundles of 5 and 10 day passes, you would set up a day pass rate with terms of 1, 5 and 10 days.
You must also define at least one subscription rule with a Subscription Type of “Day Pass”, which can be linked to your day pass rates.
Note: Currently, only term rates can be added via the Subscription Rate Setup Wizard. You must define day pass rates by clicking Add on the Rate Code tab.
You add new subscription rates by completing the Subscription Rate Setup Wizard. The wizard guides you step-by-step through the entire process of setting up a new rate, including the entry of all rate code information, rules, rate terms and the rule-rate link.
Select Accounting | Subscription Rates. The Subscription Rates interface is displayed.
Using the wizard is simple. The cards are arranged so that you can answer a few questions, click Next> to go to the next card, answer some more questions, and so on, until you’ve entered all of the information necessary to create the new rate. When you reach the last card of the wizard, click Create to save the new rate and end the wizard.
You can also go back to previous cards to change your entries, skip certain sections (thereby accepting the default entries on those cards), or cancel the wizard at any time. You perform these tasks by clicking the buttons shown in the following table.
Takes you back to the previous card in the wizard (e.g., to view or change a previous answer). You can also press Alt-B to activate this button.
Takes you to the next card in the wizard (when you’ve answered the questions on the current card). You can also press Alt-N to activate this button.
Takes you to the next section (group of related cards) in the wizard, skipping the remaining cards in the current section and accepting the default answers for all questions on those cards. You can also press Alt-F to activate this button.
Cancels the wizard entirely. None of the information you entered will be saved.
Creates the new rate. This button appears only on the very last card of the wizard. You can also press Alt-F to activate this button.
Every time you use the wizard, you are taken through the process of creating a new rate. Depending on the rate type you specify, certain cards may or may not appear. This section describes all of the cards that may appear, in order, and provides some detail about the types of entries you can make on them. In cases where a card appears only for a certain rate type, that fact will be noted.
This card appears when you launch the wizard. Here, you enter the most basic information about the new rate, such as they rate type and name of the rate.
What is the Subscription Type for this rate?
This field currently displays “Term” and cannot be changed, as only term rates can be defined in the Subscription Rate Setup Wizard. Day pass rates must be defined in Subscription Rates setup.
What type of rate do you want to create?
Click the appropriate radio button to identify the type of rate you are creating. You have the following choices.
Free—Used only for free periods at the beginning or end of a subscription period.
Promo—Temporary rate used primarily for new subscribers. After the promotional term, subscribers are automatically assigned a new rate (usually a normal rate).
Reduced—Permanent, reduced rate given as a result of a billing change, change in rating rules, etc.
Normal—The regular rate charged for the paper. Free periods and promo rates automatically switch over to a normal rate when their subscription periods have ended.
Retail—Used only as the “next rate” in calculating discounts for normal rates over longer terms (e.g., subscribers may receive a discount by purchasing 13 weeks rather than 6 weeks). Retail rates cannot be assigned to subscribers, and there is no next rate for them.
Balance Forward—The regular rate charged when balance-forward billing is used. Balance-forward bills include any balance due from previous months, charges and credits since the last bill date, and the charge for the next billing period.
What is the name of the [rate type] Rate?
Enter a name (i.e., ID) for this rate code. This is what that will appear when viewing and selecting rates for subscribers in Customer Service.
Which Publication is the rate for?
Select the publication or combo to which this new rate applies.
What is the Next Rate?
Enter one of the following:
If this is a promo rate, enter the rate code that will apply when the promotion is over.
If this is a reduced rate, enter the rate code for the corresponding full-priced normal or retail rate so the discount can be calculated.
If this is a normal rate, this field will default to the same rate. You can select a different normal rate or a retail rate.
If this is a free or retail rate, you cannot assign a next rate.
On this card, identify whether this rate is a flat or percent rate:
Flat—Select this option if you want to build the rate by entering a flat amount for the entire rate.
Rate by Day—Select this option if different rate amounts should be specified for each day (Sun-Sat). Each day’s amount is added and multiplied by the term length to calculate the total subscription amount. For example, if defining a 13 week term, the total of each day will be multiplied by 13 to determine the total rate amount.
Percent by Day—Select this option if you want to enter a total subscription amount, and then assign each day a certain percentage of that amount. The total of all days must be 100%.
On this card, you select the terms (e.g., “12 weeks”, “6 months”, etc.) for this rate. To select a rate term, highlight it in the list on the left. Then, click Add> to move it to the list on the right. You can select multiple terms to use with a rate. If you need to remove a rate term, select it from the list on the right and click <Remove.
Different terms types are available, based on whether the rate is flat, rate by day, or percent:
If flat, terms can be defined by week, month, quarter, or year.
If rate by day, terms can only be defined by week.
If percent by day, terms can only be defined by week or month.
If defining a flat rate, enter the cost of the rate. The per copy rate will be determined by dividing the flat rate by the number of delivery days in the subscription term.
How much does [term] cost?
Enter the total cost of each selected term.
Show on Renewals? Show on Invoices?
Indicate whether the rate term should be printed on the subscriber’s renewal notices and invoices. Your options are:
always—The term is always printed on renewal notices/invoices. Be sure you set up at least one rate term for this rate to print on renewals “always”. This is required for renewal notice printing.
never—The term is never printed on renewal notices/invoices. “Never” is commonly used for one-day terms that are needed to calculate odd-amount payments.
previous—The term will be printed on renewal notices/invoices only if the subscriber previously paid for this payment term. This is often used for special rates that are not normally offered.
On this card, you build the cost of each rate term you selected in the previous card. If this rate is a rate by day rate, you will be asked to enter the cost by day in amounts. The cost of the entire term will be updated as you enter the cost for each day (multiplied by the number of weeks in the term). Be sure to complete the detail for each term in the list.
How much do [day of the week] cost?
Enter an amount (decimal) for each day of the week. The total for the term is updated automatically as you enter amounts.
Show on Renewals? Show on Invoices?
These fields are the same as for flat rates, above.
Note: This card appears for percent rates only. For flat rates, see Enter Rate Term Detail (Flat Rate).
On this card, you enter the cost of each rate term you selected in the previous card. You’ll enter the cost for the entire term and, for each day of the week, the percentage of the total cost represented by that day. For example, enter “20” for Sundays if they represent 20% of the cost of the subscription.
How much does [term] cost?
Enter the total cost of the rate term.
What is [day of week] percent?
Enter the percentage of the total for each day of the week. The percentages must total 100% before you can proceed with rate setup.
Show on Renewals? Show on Invoices?
These fields are the same as for flat rates, above.
Discount GL accounts are used to record discount amounts attached to promo, reduced, retail and free day rates, as well as term discounts, overridden rates and “let’s make a deal” rates (if the subscriber pays an extra amount, they are given a lengthened subscription rather than a refund). On this card, you define the discount GL accounts for each day of the week.
Rate Code
display
The subscriber rate code being added is displayed.
Company Product Distrib Method AAM Zone Area Region Distrib Zone District Delivery Schedule
setup
Subscriber discount GL accounts can be defined based on any combination of these fields. Enter a specific value in a field, or enter “*” to include all. For example, if you enter a product of “DM”, the discount GL accounts will be used only with DM subscribers. If you enter a product of “*” instead, any subscriber could use the discount GL accounts (if they meet the other criteria defined here).
Discount Acct (Sun-Sat)
setup
For each day of the week, enter the GL account that should be used for subscriber discounts meeting the criteria entered above.
On this card, you can link a rewards program to the terms you created on the previous cards.
Term
Select a term from the list. These are the terms you set up on the Enter Rate Term Detail card.
Reward Program
Select a reward program from the list.
Offer Code
Select an offer code from the list.
Reward
Enter the reward amount that the subscriber will receive for this term.
Autorenew Reward
Enter the reward amount that the subscriber will receive when auto-renewing for this term.
On this card, you begin entering rules for the new rate, starting with the subscription rules of delivery schedule and delivery type.
Which delivery schedule is this rate for?
Enter a delivery schedule ID, select one from the lookup, or enter “*” for all delivery schedules.
For what type of delivery is this rate?
Enter a delivery type (e.g., carrier, mail, etc.), select one from the lookup, or enter “*” for all delivery types.
This card is a continuation of the Delivery Information questions.
Which source code should be linked to this rate?
Enter the source code that should be linked to this rate, or enter “*” for all.
Which reason code should be linked to this rate?
Enter the reason code that should be linked to this rate, or enter “*” for all. The reason code is considered only when entering Start or Delivery Schedule Change transactions.
How many days must the subscriber be stopped to get this rate?
Enter the minimum number of days a subscription must be permanently stopped to qualify for this rate.
This is the first of three cards that asks you to enter the location rules for this rate (i.e., if this rate is valid only in certain locations). If you do not need to define rules for location, you can click Advance to accept the defaults and skip these cards.
For what zip is this rate valid?
Enter the zip code for which this rate is valid or “*” for all.
For what country is this rate valid?
Enter the country for which this rate is valid or “*” for all.
For what state is this rate valid?
Enter the state for which this rate is valid or “*” for all.
For what county is this rate valid?
Enter the county for which this rate is valid or “*” for all.
For what city is this rate valid?
Enter the city for which this rate is valid or “*” for all.
This is a continuation of the previous card. It allows you to narrow down the location even further into AAM zone, route, and district.
For what AAM zone is this rate valid?
Enter the AAM zone for which this rate is valid or “*” for all.
For what route is this rate valid?
Enter the route for which this rate is valid or “*” for all.
For what district is this rate valid?
Enter the district for which this rate is valid or “*” for all.
This is the last card for entering location rules.
What dwelling type is valid for this rate?
Enter the dwelling type that is valid for this rate or enter “*” for all.
What delivery placement is valid for this rate?
Newspapers may add a surcharge for special delivery placements (for example, “under the mat” for motor routes). If this rate will be used for a specific delivery placement, select one here. Otherwise, enter “*” for all.
What census tract is valid for this rate?
Enter the census tract that is valid for this rate, or leave at “00000.00000” for all.
What subscriber rate class is valid for this rate?
A subscriber rate class is a group of routes that is used for subscriber rating purposes. If this rate is valid only for a specific subscriber rate class, enter it here. Otherwise, leave it at “*” for all.
If this rate is associated with a specific occupant type, you can select one here. Just click to highlight it. Otherwise, just click Next>.
If this is an auto renew rate, select Credit (for credit card auto renew), Bank (bank draft auto renew), or PayPal (for PayPal Express Checkout auto renew). Otherwise, select No (this rate is not auto renew).
On this card, you enter the last details necessary to create the new rate code, such as the date range, a description, and other details.
When will this rate code start?
When will this rate code end?
Enter the date range for which this rate will be active. Either type the dates or click the calendar icon to select the dates from a calendar.
Tip: You can enter the date range in one step by doing the following:
Click the calendar icon next to the start date field to display the calendar.
Locate the start date and click to select it. The start date will be highlighted in green.
Keeping the calendar open, locate the end date and click to select it. The calendar will close, and both of the date fields will be populated.
If you open the calendar again, you will see the start date highlighted in green and the stop date highlighted in red.
When do the rules take effect?
Enter the rule-rate link start date. This is the date on which the rate actually becomes valid for use. This date must be within the date range specified above.
What type of rate is this?
This is a read-only field; the value is carried over from the Create a New Rate Code card.
What AAM price level should this rate use?
Enter the AAM price level for subscribers with this rate code. AAM price levels can be used to categorize discounted rates in the AAM reports. Otherwise, leave at “*” to use the default price level defined in Business Rules.
Is previous delivery allowed?
Select “yes” if new or restarting subscribers with this rate code will be offered a previous day’s paper. For example, a new subscriber who starts on a Tuesday might be offered the previous Sunday’s paper. Select “no” if previous delivery is not allowed with this rate.
Is a refund allowed on this rate code?
Select “Yes” if refunds will be allowed for subscribers on this rate code.
Should subscribers on this rate be included in the Bonus Day Adjustment selection?
If this checkbox is selected, subscribers on this rate will be included when the Bonus Day Adjustment utility is run. If it is not selected, these subscribers will be ignored.
What digital restate type will this route use?
What digital draw type will the route use.
These fields indicate whether subscriptions on this rate code are subject to AAM restatement (i.e., if they have not met AAM’s requirements for accessing their digital subscriptions). In the case of combos, the method to use to create digitExempt Reasonal draws for AAM purposes is also selected. See the field descriptions of Rate Code Tab for more information.
What is the next rate?
This is a read-only field; the value is carried over from the Create a New Rate Code card.
Enter the description for this rate:
Enter a description that will distinguish this rate from other rates.
What marketing term will this rate use?
If this rate code uses a marketing term, enter day, week, month, quarter or year. Marketing terms can be used only with promotional rates. See About Marketing Terms.
What marketing length will the rate use?
If this rate code uses a marketing term, Enter the number of days, weeks, months, etc. (depending on the marketing term you selected). For example, if you enter “3” here, and you entered “month” for the marketing term, you will have a marketing period of 3 months.
Is a minimum period required?
If using marketing terms, you can set this field to Yes to indicate that a minimum subscription period is required before a stop can be entered. The following message will be displayed in Customer Service and during Transaction Processing if the minimum period has not been met: “There are X copies and $X.XX before a stop can be entered. The next available stop date is mm/dd/yy”.
Enter the renewal message that will show up on renewals:
Enter the message that you want to print on renewal notices for subscribers associated with this rate.
Some rates contain “free days” at the beginning or end of the subscription period (for example, “buy 2 months, get 2 weeks free”). If this rate contains free days, answer the questions on this card. Otherwise, just go to the next card.
Note: This card appears only for promotional rates.
What is the free rate code used during the free period?
Enter the rate code that should apply to subscribers during their free days. The free rate code will be used only for description purposes and to indicate the discount GL account for the free days discount. Note: Please note that free rates do not support percent-by-day rate terms.
How many days are required to get the free period?
Enter the minimum number of days a subscriber must buy in order to qualify for this rate. For example, you might require a subscription period of at least 30 days to qualify for a “one week free” promotion.
Is the free period at the beginning or the end?
Indicate whether the free days come at the beginning or end of the subscription period.
Are the free days calendar or publishing days?
Indicate whether the free days are calendar or publishing days. If the copy rates for this rate code vary by day of week, you must choose “calendar”.
How many free days will the subscriber get with this rate?
Enter the number of free days offered with this rate code. If the copy rates for this rate code vary by day of week, you may enter days only in increments of 7 (e.g., 7, 14, 21, etc.). The free days are added to the rate term. So, for example, if a 12-week term has 7 free days, the total subscription term would be 13 weeks.
On this card, you may set up carrier collect days for the rate.
What is the number of carrier collect term days for this rate?
Indicate how many days this term should apply to carrier collect subscriptions. After this term is over, the rate code entered in NEXT RATE will apply to the subscription. Note that the subscription length of office pay subscriptions is determined by their payment (payment / rate = subscription term).
Are the carrier collect days calendar or publishing days?
Indicate whether the term days entered above are publishing or calendar days. For example, if a newspaper publishes Mon-Sat, one week would be counted as 6 publishing days but 7 calendar days.
How many days can a carrier collect subscription stay on this rate?
If you selected “publishing” above, enter the total number of calendar days that a carrier collect subscription is allowed to stay at this rate. This can come into play, for example, if the subscription is temp stopped. Leave the field set to 0 if there is no maximum.
On this card, you link the rate code to all of the rules you have been entering throughout the wizard. You also have the option to change the names in any of the enabled fields. Values in grayed-out fields cannot be changed.
To accept the rate code and rule names and complete the new rate, click Create.
Click the Subscription Rate Setup Wizard button () on the toolbar. The wizard displays the Create a New Subscription Rate card.
