By Steve Lapa
Lapcom Communications Corp
Why did the chicken cross the road? To go to the bank!
Have you been to the supermarket lately? The dairy section where eggs are typically available is looking more and more empty. I shop at the biggest supermarket chain in Florida where a dozen and half eggs cost $8.70, or $5.70 a dozen.
The price of a dozen large eggs has gone up from around $2 to nearly $5. So where are all those rich chickens? Some families are raising their own chickens to beat the high cost of eggs. Others are looking for alternatives to the traditional supply chain, like buying eggs directly from the farm. Talk about adopting the farm-to-table concept! Why haven’t we all adopted an alternative to that simple protein packed egg? Later for the nutrition questions and suggestions, for now let’s learn the basic lessons in this game of chicken or the expensive egg.
1) Classic supply and demand. Welcome, Captain Obvious. Demand stays constant, supply goes down, prices go up. What’s in your pricing formula?
2) We are creatures of habit. Unless you have an allergy or other medical prohibition, chances are you’ve been eating eggs as a source of protein since childhood. Most will pay more to stay with the same tried-and-true rather research an alternative. How are you motivating your prospects to move away from habitual buying to trying your station/concept today?
3) What happens when supply improves? Once accustomed to paying more, we may never see that $2 dozen again. Let’s face it, most radio stations never sell out 100% of their inventory. So how do you keep that value proposition high year-round through various economic cycles.
4) One year in the making. The price of those now expensive eggs increased 60% in a year. Do you have a mid-term or long-term strategy or are you still stuck on making the month?
5) The rationale. Our skyrocketing price of eggs is being reported as the result of an avian flu. Almost anyone can understand that cause and effect equation. How about your sales strategy? Is yours that easy to understand?
Maybe this “eggcersize” seems a bit of a stretch. But consider this simple reality. The price of almost everything has increased, yet my radio friends still struggle with price management. It’s the same for almost every audio-based medium. Let’s not chicken out of the innovative pricing approaches we need during this challenging economy.
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