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Your phone is bouncing off the hook lately. Unfortunately, it’s not just customers. It’s panicky sales people worried about the first quarter. You insist there is no time for such a conversation. However, don’t be so dismissive. They may be very well pitching you and your business significant financial savings for 2019.
How so? A sales package.
What Is A Sales Package?
A sales package is a special and/or offer created to entice business typically during a slow period. Nothing groundbreaking here--you get it. The first quarter is notorious for being one of those periods where you will be presented dozens of packages.
As a former General Sales Manager for a media outlet, when times were tough, I would create a package offering my stations at heavily discounted rates. Knowing these types of packages are not uncommon, I would race my competition in an effort to be first with my special offer out on the streets.
Alas, due to the overwhelming swarm of salespeople screaming January when it wasn’t even Thanksgiving--business owners would pass on any notion of talking first-quarter. And I’m here to tell you, even after leaving the managers chair, that’s a costly error.
Because, and here is the point I can’t stress enough—This package can be used as a means to save you money. I’m not just talking about the first quarter either.
In this piece, I’m going to provide you an example of a first-quarter sales package, break it down, and ultimately show how you can capitalize on it.
The world I used to reside was the radio industry. I’m going to use this as the example, but trust me, this can be used in any industry approaching you with a first-quarter package.
If I’m in charge of three FM radio stations, more than likely each one has separate ratings. (Radio ratings are determined by the same company many know from television, Nielsen)
For example, let's say one of my hypothetical radio stations is WABC. My powerhouse. It has the largest signal and audience. WCBA is in-between. And WBAC is the weakest. Limited in reach and audience. Each station will have a discount appropriate to their popularity.
Here is what the different packages would look like:
• WABC-1,000 Commercials for only $15,000 (Savings of $5,000)
• WCBA-1,000 Commercials for only $10,000 (Savings of $8,000)
• WBAC-1,000 Commercials for only $5,000 (Savings of $10,000)
*All commercial schedules must run before March 31st and will run Monday thru Sunday from 6am-Midnight.
Looks like a great deal, right? Let's break this down.
The Anatomy Of The Package
The amount of commercials is substantial. This is an average of 83 commercials per week. I love this. My opinion, your business is in a position to see results from this type of schedule. But it could be better.
I’m not crazy about the Monday thru Sunday. Sunday morning radio is non-existent. People are either home or at church, not driving to work or school. More on this in a moment.
Also, the 6am to Midnight isn’t appealing to me either. Sure, 8 commercials a day is fantastic. But if five of them play from 7pm-Midnight…
If a commercial falls in the woods and no one is around, does it make a sound?
With all of that, this is how I suggest you use this package to your advantage.
First thing, see if they’d be willing to chop Sunday off and create a Monday Thru Saturday weekly schedule. By doing so, your commercials per day just jumped from 8 to 13. This is saturation.
Then, see if they’d be willing to tighten the time frame from 6am to Midnight down to 6am-7pm. This would be a major victory. You now have one commercial per hour and are assuring yourself of a commercial every hour of primetime radio (6am-10am and 3pm-7pm. Morning and afternoon drive).
Lastly, and this is the coup de grace, see if you can persuade them to agree to these rates throughout the year. Instead of 1,000 commercials on WABC for $15,000—You want 4,000 commercials for $60,000 the entire year! (1,000 commercials per quarter).
Simply, your response would look like this:
1. The schedule would run Monday thru Saturday.
2. Timeslots would be isolated to 6am-7pm.
3. Would like this offer throughout the entire year (4,000 Commercials on WABC for $60,000).
Each one of these conditions are in the chronological order of easiest to hardest. If you were to offer up the first two, I think it would be an easy victory. However, walking in with all three, especially #3—I can only say this as a former manager—if my salesperson walked in and told me I have a potential $60,000 sale sitting out there…It would be tough to agree.
But I’d have a hell of a time saying no.
Take The Phone Call
The next time your phone rings with an eager salesperson who can’t wait to tell you about their exciting offer for the first quarter—take a breath and tell them to send it over.
Matter of fact, do just that and then share it with us. SIX will take a look at any sales package you're being offered and give you our expert opinion absolutely free of charge.
Little holiday cheer for all to hear. Because we’re not in the advertising business here at SIX, we’re in the nurturing growth business.
From our families to yours, Happy Holidays and let’s make 2019 the best one yet!