Sales 101: You Can Compare The Price Of A Spot
Want to succeed in business? Build a product where you have no competitors. Where your price cannot be compared with someone else making the same thing.
Focus on things you can control, and build the product for people who will appreciate what you have to offer.
How does this apply to radio sales and your career? Don’t like the way media buyers talk to you? Get a mirror and blame yourself. You (and your peers) taught them that buying radio is a commodity, and the lowest cost per point or cost per thousand wins.
The only way to win is to make comparisons irrelevant. How?
1. Find the client or prospect’s pain. Their business doesn’t need cheaper spots, it needs customers. How can you help? They talk about price because you are not talking about their problems and how you can help.
2. Price is a consideration, but when running a business, you need solutions. Don’t focus on price. When you talk about ratings, you are talking about price. When you talk about Cost per thousand, you are talking about price. When price comes on the table, everything else comes off. Talk about them, not us.
3. Overcome the price objection by avoiding it. When someone says, can you lower your rate, respond by saying…”Assuming we could, what other considerations will matter to you when making your selection.” It might be promotions, creative, digital ideas. What you are looking for is something to talk about other than price. Remember, when price (or cost per point, cost per pound) comes on the table, be prepared for frustration.
4. Be proud of high prices. Whenever someone would lob an upfront price objection to me, I would lob it back. If a media buyer told me her cost per point goal, I would respond “Wow, that might be a problem. Do you know why?” They might respond, “Because you have high ratings, or you have high demand,” What they said did not matter, I would agree and say “That’s right but assuming we can come to some agreement on price, what else matters when you are making this important decision.” I am probing for something to talk about other than price.
5. Look at your last 5 sales. Look up your proposal. How many of them identify a problem (or key marketing challenge) and offer a solution? How many of them are rates (Dots and Spots). If you are not proposing solutions for problems you heard your client identify, you are going to get compared on price (and ratings). Prepare for a future filled with frustration for you. I’m not talking about ideas you came up on your own that you are trying to pitch, but ideas targeted to this prospects needs. Ideas developed with the prospect.
The product you need to build is you. You can make price comparisons irrelevant by understanding clients needs, developing ideas to meet them, and effectively proposing them. You need to get better at asking questions. You need to understand how local marketing via radio, and the internet can help your clients. You need to understand that your career can be filled with price negotiation, which will eventually make you irrelevant, or you can develop yourself to be a local marketing genius.
You are your only sustainable advantage. Get a mirror, are you a price peddler or are you really making a difference by helping your clients?
That’s what your clients want. Your help.
I saw Don Beverage probably 20 years ago say “You can compare the price of a spot, but you can’t compare the price of a solution.” It is still true today. Ask questions, create ideas, sell solutions.