With planning season in full swing,
here’s a little expert help on ad pricing and competition.
for some pricing techniques to help you achieve revenue success? Here are some
tips from Shweiki Media and Internet consultant Ryan Dohrn to help publishers deal
with issues such as value and competition.
1. Get accurate comparisons.
important for your association to create strategies for pricing that make sense
from a sales perspective. A potential advertiser will consider how your
pricing is similar to the competition’s and how it is different. To understand
this comparison yourself, it's necessary to get the accurate pricing of your
competitors. How is this done?
one way would be asking competitors to trade media kits, with the idea of working
together for the greater good. Are they going to cooperate? Unlikely.
another option is to create a recon email address/alternate persona for
communicating with the competition. Then put together a competitive grid/matrix
in an Excel spreadsheet and compare everyone.
2. Train the
crucial to know the competition's weaknesses and strengths—and then prep, prep,
prep. Train your association’s sales team. Contrary to popular belief, the most
experienced salespeople are often the ones that need to be trained the most.
Years in the publishing business can create blinders or tunnel vision, and it's
important in this age of fast-past change to keep an open mind.
3. Know your facts.
your ad prices are higher, what are you offering that's so different to justify
it? It's important to have rock-solid facts to back it up. Stats, facts, and
stories...all are crucial to explain your association’s pricing and why your publication
or website is worth it.
don’t fool yourself into believing that the competition "always” discounts.
Accurate statistics and details are needed because sometimes advertisers will even
be dishonest about discounts they're getting from the competition to get a
discount from you. Don't fall into the "discount trap"; get the
nitty-gritty on what's really going down. Another tip: Price per quarter.
4. Show more value.
matter what the competition's price is, it's important for your association to
explain why it provides more value and how it gives advertisers more bang for
their buck. Some secrets to show more value include not showing "a la carte" or "per unit" pricing.
Also, beef up digital pricing.
prices have to look right. When it comes to tricks, this is an oldie but a
goodie: No matter how it's spun, $19.99 looks less expensive than $20 while $2,395
looks cheaper than $2,400.
5. Stop apologizing.
be hesitant and don't be apologetic about your publication’s or website’s ad
pricing—if there are facts to back it up.
6. Create co-op programs.
these don't exist for a client, create them. For some industries, it makes
sense to allow a local business to run ads and a national manufacturer to pay for them.
7. Drop frequency.
an often misunderstood concept, but it's the way it's always been done. When
pricing your magazine’s advertising, eliminate confusion and other multimedia
discounts and simply offer the best print price available. Make it easy.
8. Path of Least Resistance.
assuming advertisers are going to understand pricing; instead, create sales
offers that are straight-forward, easy-to-understand, and offer value.
9. Keep in mind the 4 Pillars of Sales Success.
Process. People. Price.
selling season in full swing, try some of these strategies to help your
association get the contract, seal the deal, and profit in a competitive