For many sales teams, rate cards are the foundation of their sales efforts. When a prospect is interested and the inevitable price question arises, you provide the menu and the advertiser-to-be orders what they want. But if you dig into why a business buys the advertising products they do, you might come to a startling conclusion: your rate card structure may be limiting your revenue.
Don’t worry. There’s an answer, and it’s not all that difficult to implement.
Advertising Rate Cards Can Create a Comfort Zone
Magazines, out-of-home, digital, and event/expo advertising sales teams often face the same problem—repeat customers get comfortable with their ad spend spread across the same products, month after month. But when you take a step back, who can blame them? In many cases, they are enticed with a discount for purchasing predetermined packages or placing repeat buys across one type of product.
So, when you choose to expand your offerings, the rate card forces a decision: stay in their discounted comfort zone, or potentially lose the existing discount by reallocating their budget into new offerings.
Now, replace the rate card from the scenario mentioned above and replace it with a blanket discount for total amount spent across all products. If you set the bar at the right level to trigger the discount, you can entice your advertisers to spend more across more products.
Simplify Your Sales Process With Total Ad Spend Discounts
When you offer a discount based on total ad spend, you not only entice higher-dollar buys mixing and matching different products, you also simplify the sales and accounting processes across your team. Discounts become easier to communicate and simpler to calculate. Meanwhile, buyers enjoy the upfront pricing schedule, and feel like they are getting more for their dollar. In other words, everybody wins.
Take a look at your rate card and the types of discounts you offer to your advertisers. With some strategic planning based based on data provided by your ad sales reporting software, you can likely find opportunities to simplify your rate card discount structure and increase revenue.
Is Your Ad Sales CRM Software Keeping Up?
Ad Sales Genius is CRM software built to help you sell, produce, deliver, and invoice for the types of advertising you sell, with easy customization for managing magazines, online advertising, out-of-home, expos/events, and any combination thereof. And the best part? No developer or coding required!
Schedule a free, no-obligation demo now to find out how your business can use Ad Sales Genius to increase efficiency and pursue new ad sales revenue opportunities!