Pending Business: Price = Value
By Steve Lapa
Lapcom Communications Corp
President
Think about the concept for just a minute. Manhattan Island for $24? Peter Minuit knew value.
Two of my favorite sales training exercises are the Timex vs. the Rolex and the Bic vs. the Monte Blanc. In each role play we pit price against value with intangibles like prestige, self-esteem, peer recognition and good old Sam Walton-style common sense surfacing in the role play.
Sales managers reading this column should try those exercises to help develop and sharpen the skill sets necessary for success in radio-audio sales.
Price theory is now faced with two variables that may redefine value: inflation and meta-data, two distinctly different forces that can test our tolerance of price in the value equation. Stay with me, this gets simple, fast.
Assume almost everything costs more, you can pick your favorite reason. Mine is the price of men’s haircuts. I always wonder why the less hair I have, the price still goes up. Less hair, less time to cut, lower price? I have tried, but the price goes up every year. Why? The answer is the most important variable in current price theory, mastered by the airline-tourism business and it is about to be tested at a quick-serve restaurant near you. It is called demand, or in the Uber-driven currency, “surge pricing.” Eventually, you will be hit, even shocked, with the demand curve surge-pricing model.
The theory is simple: when just a few seats remain on the airplane or the hotel is heavily booked, the price goes up. When you desperately need Uber for a ride from the airport during rush hour, the price for that ride is different from the ride during non-rush hours. How about tickets to your favorite event? Sports and concerts have been in the demand-pricing business as long as someone was willing to pay. Surge pricing is a newer twist but has historic roots in tipping the maître d or the valet.
Now comes the latest price model. Just how hungry are you? Imagine your favorite dining spot changing menu prices by variables such as time of day, day of the week, number of orders waiting, even the number of cars in the drive-thru lane. Imagine watching the prices on the digital menu board change before your eyes based on the number of people waiting in line. This is not speculative price theory; it can start tomorrow or not.
Pricing has one variable we all take for granted. The customer, or in our case the advertiser. What is tolerated and what is rejected? We are privileged to operate in a market-driven economy. What variables will go into your pricing model today?
Steve Lapa is the president of Lapcom Communications Corp. based in Palm Beach Gardens, FL. Lapcom is a media sales, marketing, and development consultancy. Contact Steve Lapa via email at: Steve@Lapcomventures.com.
increased approximately 1% compared to last year. Saga says net income for Q4 of 2023 was $2.5 million, compared to net income of $4.3 million for the fourth quarter last year. For the full year of 2023, net revenue was $112.8 million, a decline of 1.8% from the full year of 2022. Net income rose year-over-year to $9.5 million in 2023 from $9.2 million in 2022. Saga says its balance sheet reflects $40.2 million in cash and short-term investments as of December 31, 2023, and $30.4 million as of March 4, 2024. It expects to spend approximately $5 million to $5.5 million for capital expenditures during 2024. As previously announced, Saga has entered into an agreement to purchase stations serving the Lafayette, Indiana radio market for $5.3 million. This acquisition is expected to close during the second quarter of 2024. Also announced today is Saga’s paying a regular quarterly cash dividend of $0.25 per share on March 8, 2024. The aggregate amount of the quarterly dividend will be approximately $1.6 million.
program currently in development with executive producer Chris Mathis. Lane will take on a new role as host of the signature Rays pre-game show “The Inside Pitch.” He will also continue his seasonal hosting duties with the Tampa Bay Buccaneers radio network. WDAE program director John Mamola says, “We couldn’t be more excited for Ronnie and Tom as they embark on their new opportunities at WDAE. These programs promise fresh content and compelling, engaging experiences for our listeners. We will continue the legacy of high performance the hosts built as a duo and the voice of Tampa Bay sports fanatics everywhere.”
Twitter. In the 2024 Infinite Dial, 19% of the total population in the U.S. are using X – a 30% drop. Edison says, “While The Infinite Dial has recorded many incremental changes over its long history, a 30% change in any metric year-over-year is incredibly rare and noteworthy, acknowledging that in 2022 and 2023 the survey referred to the service as ‘Twitter’ and in 2024 it referred to the service as ‘X (formerly known as Twitter).’ Keep in mind this is not a measure of subscribers or Twitter/X accounts, but a measure of people who say they are ‘currently ever’ using the service. In addition to this overall usage drop, Twitter/X saw declines in monthly and weekly usage.” 
been serving as assistant program director and executive producer. iHeartMedia San Diego market president Noreen Ippolito says, “Mary has been a part of our cluster for many years and is more than ready to take the lead role of our talk stations. She’s smart, experienced, and incredibly detailed with her work.” Ayala comments, “This is an exciting time to be taking over the program director position for these brands. Each station has its own distinct flavor, and all of them are filled with great talent I’m looking forward to working with.” 
market (fed by WXUS-HD3). Florida Man Radio continues to air on WZLB-FM, Fort Walton Beach. The programming includes Bubba the Love Sponge in morning drive, Don Miller in middays, and Shannon Burke in afternoon drive. JVC president and CEO John Caracciolo says, “Programming like FMR is what makes terrestrial radio relevant and strong. We have to dare to be different and produce content that drives listeners to our platform and that entertains, educates and sometimes just makes us laugh out loud. The vision of a locally based talk station that isn’t afraid to confront the big topics while not taking itself too seriously, screams the mantra of JVC. We need to keep live and local radio working for our clients and listeners.”
First” are #2 and #3, respectively, with NBC News’ “Dateline NBC” at #4. Other talk radio-related podcasts of note include The Daily Wire’s “The Ben Shapiro Show” rising two spots to #7, iHeartPodcasts’ “Stuff You Should Know” up two places to #9, and Dan Bongino’s “The Dan Bongino Show” up one spot to #11. 
filed by Albert Adam David, who claimed the changes would create interference for other licensees. Good Karma proposes to relocate the WMVP facility approximately 31 kilometers to the currently licensed nighttime transmitter site of WCPT-AM, Willow Springs, Illinois. Good Karma proposes to retain WMVP’s Class A designation, operating frequency (1000 kHz), and 50 kW daytime operating power, but reduce nighttime operating power to 37 kW while diplexing nighttime transmissions with WCPT (WCPT broadcasts at 1.5 kW on a different frequency).
Williams, who has been highlighting the GameChangers honorees throughout February, hosted the ceremony. The 2024 recipients were nominated by audience members, selected by a panel of previous honorees and vetted by KYW Newsradio editorial staff. Audacy Philadelphia SVP and market manager David Yadgaroff says, “We are delighted to honor the exceptional individuals who are driving positive change and making a profound impact within communities of color across Philadelphia. This yearly program highlights their unwavering dedication to making lasting contributions to this community, and we’re proud to leverage our platform to shine a light on their great work.” 
questions as it did answers about what young broadcasters entering professional media today should be prepared for in navigating the unpredictably turbulent waters of the next decade and beyond. Among the sweeping panorama of topics covered in his address, Harrison told the students, “When looking to the future, don’t be too sure that current events will follow a predictable script. There are always ‘black swan events’ that change the storyline and our expectations in an instant. Plus, there are multiple outcomes, possibilities, and forks in the road for almost every situation.” Regarding the current focus on artificial intelligence, Harrison advised, “All technology is a double-edged sword and AI will prove to be a particularly consequential one with both positive and negative implications. However, don’t fall into the age-old trap of thinking that productions and performances created or enhanced by new technology are necessarily ‘artificial’ or ‘fake.’ New tools not only create new art, they have an irrepressible influence on giving rise to new culture. The immediate years ahead are likely going to provide us with the challenging question of ‘what does it mean to be truly human?’” Harrison concluded, “As young broadcasting students in 2024 looking to make a difference in the world, be prepared to face the challenge of following your dreams, ideals and inspiration while confronting the harsh realities of making a living in a stressed environment of relentless change. We live our lives in this business at the dangerous intersection between art and commerce.”