(By Rick Fink) I recently read an article in The Wall Street Journal titled, “US Companies Bet Shoppers Will Keep Paying Higher Prices.” For local business owners, deciding to increase their prices can be agonizing. Should I raise prices and take the risk of losing customers or should I hold them and settle for less profit?
Most business owners would rather have their teeth pulled with pliers than have customers complain about increased prices. Media reps are no different. Having to inform or present to their clients a rate increase is never fun.
But there’s a catch. The WSJ article stated, “Price increases so far have paid off for makers of household staples as shoppers, particularly in the US and Western Europe, have remained loyal to big-name brands.”
Do you know which business owners AND radio reps don’t mind or fret too much about raising their prices? The ones that are branded the best.
People do business with people they trust, and purchase products they trust! If they don’t know you or if they don’t trust you, the chance of them choosing your business decreases dramatically! Adding further proof, an analyst with RBC Capital Markets, Mr. Modi, said that big companies with well-known brands will more likely succeed in raising prices than budget or smaller brands in any given category.
Selling radio is no different.
The stations and media reps that have built trust won’t have nearly as much pushback when it’s time to raise the rate! Have you ever noticed that the clients who “like” you and “trust” you rarely ask about rates? The clients and prospects you have not yet built a relationship with will inquire about your pricing significantly more often.
Rick Fink from ENS Media can be reached at 605-310-2062 or [email protected]. Read Rick’s Radio Ink archives here.
When is the last time you heard a radio station say, “We’re sold out this week” Inventory control is the key to raising rates….. Supply and demand determine what your product is worth.
Um, those price increases are due to inflation of necessary products and have been punishing for families, globally. The reality is no business looks at radio ads as necessary, in 2024 and beyond. This probably isn’t a great time to test customer loyalty through price hikes.