Principle 1: Negotiate just just before the other side’s time limits. If purchasing commercials, find out when the distance or air time has to be filled and negotiate last minute. No one will sell you hard goods such tractors for $5 to get rid of them, but this occurs all of the time with ad space, as it is worth $0 if not filled. It expires like food items on a shelf. The same method can be used for cars if you find out when new models are available or when sales quotas are calculated.
In this discussion, assuming the deadline for ad submission is June 30th and the rate card for a full page ad is $3,000, the follow up call is around June 20th at around 3:30pm your time just previous to FedEx drop off closing dates. Principle 7: Practice using the “firm offer. ” This is when, in place of asking the non committal “Can you do $ ?” you are making an if then dedication reminiscent of “If which you could do $ , we will pay you presently. ” The latter is a proposal of charge as opposed to idle haggling. To avert this entire phone conversation, it is feasible to use a pre emptive firm offer and send an e mail declaring that you are prepared to immediately pre acquire one ad—whether full page, half page, or 1/3rd page; whichever they prefer—at 30% or 40% of rate card. To make this “firm offer” even harder to withstand, FedEx them three signed checks for 30% of each of these ad sizes and tell them to cash one, whichever favorite, or rip all of them up.
Especially when they are paid on fee. They are hot to make a sale, any sale, and see the fee check lights up in front of them. Profitability doesn’t matter to them since their pay is customarily based off of earnings. What occurs on the back end is they become a champion to your cause and your price. I’ve seen it happen again and again the sales person will hammer the pricing team until they relent, or go to better management to force the sale through. Very few sales people are capable of playing hardball.
They are paranoid about losing the sale and will make nearly any concession to get it. Here’s the fact: Rate raping isn’t new, it’s called remnant advertising. Remnant advertisers never get called by an ad rep until the close of an issue and only if space is accessible. Yes, magazines basically do sell out of space. If a mag is full, guess what?You don’t get to advertise. And, do you know what the major to ads is?Consistency.
If you’re going to risk ads to an viewers only once, don’t do it at all, you’re squandering precious money. Tim, I challenge you find me one successful agency that flourishes or better yet, survives with an inconsistent remnant commercials strategy.