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We Can't Do That
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My problem is that this newsletter talks to two audiences at the same time.
1. Those in larger markets that're getting hammered. It's common for many heritage stations in the in the Top 20 markets to be off 20-30%.
2. Then there is the vast majority of smaller market stations who are pacing even or ahead for the year.
Our industry has hung on to notions that expired years ago; notions like Rate Integrity, or We won't give it away, or They want Value Added. Usually hollow words, but they make managers feel good. The reason they want Value Added is that we've done a lousy job of demonstrating our Value. There's a disconnect between OUR perception of our value and THEIR perception of our value.
Then look at sellout. I just bought a round-trip, non-stop ticket from Phoenix to JFK for $205. In November that same ticket cost over $600. Why the lower price? Because of those former higher prices fewer people are flying. The airlines understand that if they let a plane fly with empty seats - that's money lost forever. So they lower the rates to a level that will sell out every trip. Same with us. Why would we leave a spot unsold? The goal is to get the highest possible price. That's a function of getting to a sellout level of 85% 5AM-10PM.
When the client asks for a concession, we hang on to the past. I know an OWNER who has a sellout of about 60% - who won't, as he says, "come down on my rate." Forty percent of his spots go for Zero. Crazy. As a result, we've left our people hanging to clichés that do serious damage.
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The Art of Negotiation
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Do you know how an independently-owned restaurant stays in business? An appliance store? A furniture store? The owners know how to BUY SMART. They are accustomed to NEGOTIATING with their suppliers for the best possible deal. Haggling, give-and-take and give-and-take are part of everyday business. Have you watched your management deal with Arbitron? It's a negotiation - both sides wanting the best possible deal; absolutely normal. However, we are aghast when, in a recession, a client asks for a concession.
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Let's Talk
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That's the answer. Let's Talk. Keep the conversation alive. Consider a common situation; you have a client you've worked hard to sell, then kept them on the air, built a good relationship and they pay on time. That client now asks for a concession, Instead of turning them down flat, keep that valuable relationship alive. If they're on the air (or a good prospect) you're in good shape. The relationship changes totally when they cancel.
The answer is to Talk Turkey. Give and Take.
A couple simple examples:
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Yes, we can do THAT, if you'll do THIS.
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Yes, we can lower the rate, if you can spread the dayparts (thus retrieving some prime avails).
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Yes, we can lower the rate, if you keep the same monthly billing.
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Sure, we can do that if you agree to pay in advance - or pay by the week.
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My favorite: Yes, we can give you more spots - AS LONG AS WE HAVE THEM.
Get the idea. Keep talking.
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Fifty-Two Weeks Are Great, but . . .
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We talk big, but I don't know many broadcasters who short rate. However, if we want long- term business, there're great ways to get long term commitments. If, as above, they want a concession, we'd say something like, I can give you that deal as long as you - stay on for consecutive weeks - or months - or any mutual benefit to you.
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We Need to Understand Negotiation
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We maintain that yes, it's a Tough Economy, but it's better to succeed if we consider it a New Economy WITH NEW RULES - the trick is to discover those New Rules. Here's one: Today's New Economy will reward the person who's good at negotiating. Radio does a great job of SALES training, but we're lousy at NEGOTIATING. It's easy to get up to speed because there are some excellent books on the subject. They're easy reads, and in most cases pretty fun reading. Three of the best are . . .
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Getting to Yes. A best seller.
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Influence: the Psychology of Persuasion. I know people who swear by this one.
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The Art of Negotiation by Herb Cohen. The easiest read. (He's a hoot.)
A couple of them sell for under $5 bucks used. A couple have CD or downloadable editions - perfect for listening between sales calls. You can get out of a car and try some of these tactics immediately.
Click here. It'll take you through our recommended reading website where you can find each book's page on Amazon.
They all espouse one universal theory; Give - but don't do so without Getting something in return.
They'll show you how to take the steam from a tough client negotiation; how to keep a cool head and come out of a with both of you happy with the results.
I really, really encourage you to grab a couple of these. They will really pay off for you. Promise.
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