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David,<br>
<br>
Interesting to read "the 6 pricing strategies".<br>
<br>
We've had 17yrs as a Community weekday evenings only opt-out from
the local ILR station and the agreement with them only allowed
limited sponsorship, no advertising.<br>
<br>
Once we were running on our own licence (& transmitter etc) in
2014 the situation changed. Several people in the industry advised
us to take advantage of all the "go-live" publicity and for a while
to charge "Rate card + a premium" - exactly the opposite of the
"Penetration Pricing" strategy!<br>
<br>
As regards some people saying that "that's too much" - you will
always get that. One that we had - I bought all the various local
papers in our broadcast area one week.<br>
<br>
I phoned several firms that week where I knew people well enough for
off the record enquiries to see if it had been a busy or quiet week
for the papers - ie had adverts been booked a long time ahead or
were they last minute ones, were people paying full rate to the
papers or was there much discounting to sell white space (appeared
not so that week - not 100% accurate, I know, but.......)<br>
<br>
I know that white space affects papers rather than radio but we
wanted to guesstimate how much the firm was spending a week.<br>
<br>
We were then able to decide that if the firm were paying that much,
even a half-decent campaign with us would still cost far less than
they were paying the papers, & that we shouldn't/wouldn't
devalue our product. They had admitted that being on KCR had
increased their footfall and were, frankly, having a laugh......<br>
<br>
There are times to turn down business!<br>
<br>
In contrast, we have had several non-commercial organisations happy
to take a block of adverts at what they felt was a very reasonable
rate compared to the ILR / newspaper charges - "No-brainer" was one
comment..... (That's not charities etc BTW - we have free Community
Corner / Community Announcements slots for them)<br>
<br>
Regards,<br>
<br>
Eddie<br>
<br>
<br>
<div class="moz-cite-prefix">On 02/02/15 18:14, David Duffy wrote:<br>
</div>
<blockquote
cite="mid:429C6204-9F18-4F89-9E61-BD23AE0FF43F@theradiopeople.co.uk"
type="cite">
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charset=windows-1252">
<div class=""><br>
<div class="" style="margin: 0cm 0cm 0.0001pt;"><span
style="font-size: 15px;" class=""><font class=""
color="#333333">I've done a lot of work on product and
service pricing over the years and it often bears no
relationship either to worth or value. We have </font><a
moz-do-not-send="true"
href="http://www.theradiopeople.co.uk/pricing" class="">this
simple table</a><font class="" color="#333333"> which you
might find useful. It shows </font></span><a
moz-do-not-send="true"
href="http://www.theradiopeople.co.uk/pricing" class="">the
6 pricing strategies</a><span style="font-size: 15px;"
class=""><font class="" color="#333333"> that are most
commonly used in radio. Enjoy!</font></span></div>
<div class="" style="margin: 0cm 0cm 0.0001pt;"><span
style="font-size: 15px;" class=""><font class=""
color="#333333"><br class="">
</font></span></div>
<div class="" style="margin: 0cm 0cm 0.0001pt;"><span
style="font-size: 15px;" class=""><font class=""
color="#333333">All the best</font></span></div>
<div class="" style="margin: 0cm 0cm 0.0001pt;"><span
style="font-size: 15px;" class=""><font class=""
color="#333333"><br class="">
</font></span></div>
<div class="" style="margin: 0cm 0cm 0.0001pt;"><span
style="font-size: 15px;" class=""><font class=""
color="#333333">David</font></span></div>
<div class="" style="margin: 0cm 0cm 0.0001pt;"><span
style="font-size: 15px;" class=""><font class=""
color="#333333">Senior Partner - The Radio People</font></span></div>
</div>
<br>
</blockquote>
<br>
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