What’s Wrong With Us?
Why do those of us in media think packages always infer discounts?
The best marketers sell premium packages.
BMW’s ‘sports package’ for example, artfully takes the customer’s focus off of the vehicle’s base price (the equivalent of your base spot rate) and focuses on selling a total package that includes some items the customer wouldn’t normally buy, at a price considerably higher than the base vehicle price.
Sure, they ‘discount’ the sports accessories in the premium package, but that package consists of a list of options which few buyers would buy in total; and the sports package includes their highest margin products.
BMW’s average sale is always higher, not lower, and their profits are considerably higher selling premium packages.
Many of your prospects and customers don’t care as much about ‘spot rate’ or base price, as they do about the total monthly investment and what they receive in return. Most who do focus on spot rate have been ‘trained’ by us to do so.
Packaging a spot campaign with low cost/high profit options like product placement, on-air contests, product sampling, online surveys, mobile, data base marketing, better creative, guest appearances, and more, can take the focus off of your spot rate and result in higher average sales and happier clients.
Your ‘package price’ should always be at least 10% higher than your A.M.I. (average monthly invoice). Average monthly invoice tells you what your market and your sales people perceive your station to be worth. A premium package that delivers more than just ‘spots’ can deliver sales higher than that average.