<div dir="ltr">This is from my own experience:<br><br>- If you tell a company that your adverts are worth £300 a year, they'll believe you. <br>- If you tell a company that your adverts are worth £3,000 a year, they'll believe you. They might not be willing to pay for it, but they'll believe it's worth it.<br><br>Although we all know that the lower the price, the higher the demand, it's definitely NOT 10 times easier to sell for £300 than £3,000. I can name two former local community stations - TGR and Link FM - who got their pricing wrong. One advertised packages from £100 a year on their website. Re the other, we were approached by a local company who were offended when I asked them for £2,000 a year to sponsor a show as they were sponsoring the equivalent show on the other station for £4 a week!<br><br>I rarely do deals for less than £1,000 unless it's for a short term advertiser who can give me both the finished advert and the payment up front. It's just too much hassle. Ignoring these occasional ones, my average sale is now £4,000. Other radio and newspapers locally have been putting prices up too so we're lucky not to suffer from cut-throat competition. Oh, and get a salesman who DOESN'T want to be a superstar DJ and does his job, it WILL pay for itself and more!<br><br>I've also found that the people who are likely to cause problems with payments in the middle or end of a campaign are the ones who pay hundreds, not thousands. I don't know why - maybe if you pay a higher level you've made a business decision and it's easier to justify sticking to it, whereas if you pay a small figure you're expecting a much quicker return. Definitely something to do with small businessman psychology.<br><br>A lot of local businesses believe that if you charge low prices, you're telling them that even YOU don't think it's worth much, and whether that's fair or not I tend to agree with them.<br><br>Apologies to those stations who do charge low prices because I know there's a variety of other reasons why you could do that and that it would work for you - it wouldn't work for us though.<br><br>Cheers<br>Paul<br><a href="http://www.phoenixfm.com">www.phoenixfm.com</a><br><br><br><br></div><div class="gmail_extra"><br><div class="gmail_quote">On 3 February 2015 at 00:21, Eddie Stuart <span dir="ltr"><<a href="mailto:eddie@kcr.fm" target="_blank">eddie@kcr.fm</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
<div bgcolor="#FFFFFF" text="#000000">
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<span class=""><br>
<br>
<br>
<div>On 02/02/15 18:14, David Duffy wrote:<br>
</div>
<blockquote type="cite">
<div><br>
<div style="margin:0cm 0cm 0.0001pt"><span style="font-size:15px"><font 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 href="http://www.theradiopeople.co.uk/pricing" target="_blank">this
simple table</a><font color="#333333"> which you
might find useful. It shows </font></span><a href="http://www.theradiopeople.co.uk/pricing" target="_blank">the
6 pricing strategies</a><span style="font-size:15px"><font color="#333333"> that are most
commonly used in radio. Enjoy!</font></span></div>
<div style="margin:0cm 0cm 0.0001pt"><span style="font-size:15px"><font color="#333333"><br>
</font></span></div>
<div style="margin:0cm 0cm 0.0001pt"><span style="font-size:15px"><font color="#333333">All the best</font></span></div>
<div style="margin:0cm 0cm 0.0001pt"><span style="font-size:15px"><font color="#333333"><br>
</font></span></div>
<div style="margin:0cm 0cm 0.0001pt"><span style="font-size:15px"><font color="#333333">David</font></span></div>
<div style="margin:0cm 0cm 0.0001pt"><span style="font-size:15px"><font color="#333333">Senior Partner - The Radio People</font></span></div>
</div>
<br>
</blockquote>
<br>
</span></div>
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