{"id":72,"date":"2011-12-08T02:40:39","date_gmt":"2011-12-08T02:40:39","guid":{"rendered":"http:\/\/www.wensmedia.com\/\/salesarchive\/permalink\/2011\/12\/7\/214039.html"},"modified":"2011-12-08T02:40:39","modified_gmt":"2011-12-08T02:40:39","slug":"genius-vs-insanity","status":"publish","type":"post","link":"https:\/\/www.ensmediausa.com\/ens-on-sales\/uncategorized\/genius-vs-insanity\/","title":{"rendered":"Genius vs Insanity"},"content":{"rendered":"<p>&nbsp;<\/p>\n<div style=\"text-align: center; margin: 0in 0in 0pt\" align=\"center\"><b><span style=\"font-size: 22pt\">Genius vs Insanity<\/span><\/b><\/div>\n<div style=\"margin: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"text-align: justify; margin: 0in 0in 0pt\"><span style=\"font-size: 12pt\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/span><span style=\"font-family: Arial\"><span style=\"font-size: 12pt\"> I think retail advertising expert Morris Saffer said it best when he said, &ldquo;It doesn&rsquo;t take a genius to increase your sales. Simply cut your prices in half and you&rsquo;ll make more sales. The genius&rdquo; said Morris &ldquo;is in increasing your sales at a profit!&rdquo;<\/span><\/span><\/div>\n<div style=\"text-align: justify; margin: 0in 0in 0pt\"><span style=\"font-family: Arial\"><span style=\"font-size: 12pt\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I often marvel at media sales managers who wear being &ldquo;sold out&rdquo; as a badge of honour. &nbsp;To me, being sold out is NOT a good thing. &nbsp;Being sold out simply means your prices are too low, and you&rsquo;re turning down business. Where is the honour in that?<\/span><\/span><\/div>\n<div style=\"text-align: justify; margin: 0in 0in 0pt\"><span style=\"font-family: Arial\"><span style=\"font-size: 12pt\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; And the long term damage that is caused by commoditising our industry with &lsquo;unsold inventory sales&rsquo; makes me feel like the inmates are running the asylum. <\/span><\/span><\/div>\n<div style=\"text-align: justify; margin: 0in 0in 0pt\"><span style=\"font-family: Arial\"><span style=\"font-size: 12pt\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In our 12 Profitable Pricing Strategies, one of the strategies we suggest is to re-examine your sales compensation system.<\/span><\/span><\/div>\n<div style=\"text-align: justify; margin: 0in 0in 0pt\"><span style=\"font-family: Arial\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style=\"font-size: 12pt\">Many stations reward salespeople and sales managers, on gross sales, whether those sales are profitable or not. Talk about lunacy! <\/span><\/span><\/div>\n<div style=\"text-align: justify; margin: 0in 0in 0pt\"><span style=\"font-family: Arial\"><span style=\"font-size: 12pt\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I compare it to the real estate salesperson who would rather sell your house for $450,000 than $500,000. &nbsp;The difference to you is $50,000.&nbsp;But with commissions in excess of $20,000, the difference in commission between the low price and the high price, is only a couple of thousand dollars to the agent. Many agents would rather take the least line of resistance and &lsquo;sell&rsquo; at the lower price (I use the word &lsquo;sell&rsquo; very loo<span style=\"color: black\">sely).<\/span><\/span><\/span><\/div>\n<div style=\"text-align: justify; margin: 0in 0in 0pt\"><span style=\"font-family: Arial\"><span style=\"color: black; font-size: 12pt\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Car dealers don&rsquo;t pay commissions on the total price of the car. &nbsp;They only pay on the gross <u>profit<\/u> of each car. <\/span><\/span><\/div>\n<div style=\"text-align: justify; margin: 0in 0in 0pt\"><span style=\"font-family: Arial\"><span style=\"color: black; font-size: 12pt\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; While your bean counters might protest it&rsquo;s more difficult to manage commissions based upon profit per spot than on gross sales, you know your rates would go up if you paid more for better rates. &nbsp;Right now your salespeople only care about the total sale, and have no incentive to drive rate. This strategy leaves you with the headache of &lsquo;inventory management&rsquo;.&nbsp;<\/span><\/span><\/div>\n<div style=\"text-align: justify; margin: 0in 0in 0pt\"><span style=\"font-family: Arial\"><span style=\"color: black; font-size: 12pt\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If you did not see our 12 Profitable Pricing Strategies for radio and TV last week, see them on our website <\/span><u><span style=\"color: blue; font-size: 12pt\">here<\/span><\/u><u><span style=\"color: black; font-size: 12pt\">.<\/span><\/u><\/span><\/div>\n<div style=\"text-align: justify; margin: 0in 0in 0pt\"><span style=\"font-family: Arial\">&nbsp;<\/span><\/div>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Genius vs Insanity &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I think retail advertising expert Morris Saffer said it best when he said, &ldquo;It doesn&rsquo;t take a genius to increase your sales. Simply cut your prices in half and you&rsquo;ll make more sales. The genius&rdquo; said Morris &ldquo;is in increasing your sales at a profit!&rdquo; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I often marvel [&hellip;]<\/p>\n","protected":false},"author":35,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-72","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Genius vs Insanity - ENS on Sales<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ensmediausa.com\/ens-on-sales\/uncategorized\/genius-vs-insanity\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Genius vs Insanity - ENS on Sales\" \/>\n<meta property=\"og:description\" content=\"&nbsp; Genius vs Insanity &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I think retail advertising expert Morris Saffer said it best when he said, &ldquo;It doesn&rsquo;t take a genius to increase your sales. Simply cut your prices in half and you&rsquo;ll make more sales. 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