By Steve Lapa
Lapcom Communications Corp
President
When market leaders drop rates, what comes next?
We have all been there. A market leading radio station will review sales, income, profits, pacing, costs and determine the best path to increasing income and reversing a negative sales trend is to strategically reduce, repackage or simply drop rates.
Assume the position of being downstream in audience delivery, which should mirror most reading this column. This is the time of year when many news/talk operators face this never-ending strategic pricing dilemma. Unless you are fortunate enough to sell or manage for the market leader, the trickle-down effect of the market leader dropping rates in a knee-jerk reaction to slow sales can be a 90–120-day revenue and income killer for those living downstream. It can happen in any business, but ad sales are particularly vulnerable as cancellations, market business conditions and weather can often impact the delicate ecosystem of radio ad sales.
Like it or not, very few if any business decision makers wake up shouting, “Gotta buy some radio ads right now!” With Father’s Day behind us (hope you had a good one) and Labor Day in front of us, let us review some basics to help keep our collective eye on the prize and focus on delivering performance through year end.
1. Summer Sales. Like or not, the American retail world we grew up and live in today conditioned us to anticipate and respond to those great summer sales events. July 4th, Labor Day, Back to School, these are all themed marketing opportunities that most of us expect and celebrate. That “Summer Sizzler” sale is not limited to steaks, barbeques, fashion, and vacations. Be creative, go with the flow and work with your teams to be a front runner in the creative packaging opportunities department.
2. Plan to adjust. Keep an idea or two on hold until it is “break the glass” time, then pull the trigger on your adjustment and move fast!
3. Expand your prospecting universe. New business opportunities are the lifeblood of sales. That email you send asking if there is anything happening this season is a necessary evil and without anything compelling to add it is deleted as quickly as you hit send. Be different!
4. Balance your short-term sales panic button with a long-term plan. We all must deal with the uncontrollable competitive variables in our sales environment. But success belongs to those who anticipate, adjust, accommodate, and answer the challenge!
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.