RATE INTEGRITY Marc Kalman – All Access Over the past months, I have written quite a bit about pricing. This includes how to price everyday, how to price for share, and why to price differently as the management team watches the calendar change.
Today, after many emails with many readers, I feel a need to address price integrity. It is a critical issue that is far better today than in the past, but it must continue to improve.
As you look at your (or any other) radio stations, there are constants in costs that are only going up. Everyone on staff needs to get paid, energy costs continue to rise, and there are few places to go to save money. In fact, with all the ancillary things involved in broadcasting (ratings, music fees, station vehicles, etc.), it is hard to cut corners that make any sense. Which is why pricing becomes so much important and why a sales manager who really knows how to MANAGE their department is critical. The easiest way to a sale is to make it affordable and attractive, but by doing that, who is the rep and sales manager helping?
The client is really not being helped. By paying a lower rate, their positioning will not be as good. The rep, who works on commission, makes less and, most importantly, the company which funds all these other expenses makes less money.
It is not fair to anyone to under-price the value of your station. If I own the station, I think it may be time to improve my sales management! Be strong, think of the big picture, and hold your rates. The only way this industry as a whole will grow to the level it should is by pricing and running your station or stations with love, caring and integrity.
This pricing issue, as I said, is improving, but still, to me, pricing remains one of the most important areas where we must all work to develop! |