Premium Packages

A New Perspective on Packages

 
            Why do so many radio ‘package’ offerings default to offering discounts?
            Smart packagers create premium packages as a way of taking the focus off of their base product pricing.
            Take BMW, for example. When BMW offers their ‘sport package’, customers do not question the basic BMW price, and are left to negotiate on the much more profitable ‘options’ portion of the sport package.
            Each option, like sport wheels, spoilers, tuned suspension, sport seats, steering wheel and low profile tires, by themselves cost a fortune. But as a ‘package’, you get all of them at a discount while paying full pop for the base automobile.
            In radio, our station promos, liners, sponsor credits, on-air contests and other elements of our programming should actually be priced with huge margins because they are not perceived as ‘commercials’ or programming interruptions by the listening audience.
            When you ‘package’ this valuable inventory at a discount rate from the high-margin promo rate, you can take the focus off of the basic spot rates in your ‘package’.
            The packaging guidelines we use at all of the stations we consult include;
1.) All packages should be priced at a minimum of ten percent over your average invoice price. The amount of your average invoice tells you what your clients, the market and most importantly, your sales people think your station is worth.
Why go to all of the trouble of creating a special package if it can’t give you a lift to that value?
2.) All packages include brand sell commercials for the advertiser at full rate, with only the added value being discounted.
            It’s been said that a smart man makes a mistake and learns from it. A wise man hires a smart man and avoids those mistakes altogether.
            We’ve seen lots of mistakes at media companies across North America and can help you avoid them! Our consulting services are guaranteed to give you a minimum five to one return on your investment or we willrefund your investment in full.
            Want to learn more? Contact [email protected].