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Negotiating Radio Rates Get the most for your advertising dollar.

By Kathy J. Kobliski

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Q: I'm dealing with a radio salesperson who won'tnegotiate the price of commercials on his station. Is there any wayfor me to get a better deal?

A: Almost always. If you're new to advertising, thesalesperson will want to train you so you won't get feisty withthem until further down the road. At this stage of the game,you'll probably encounter resistance not only to your requestfor a more favorable rate, but also in the time slots you want.

Lower rates can usually be found in rotating schedules whereyour commercials are run during the "best timesavailable" between 5 a.m. and midnight. If that time framedoesn't set well with you, tell your rep you want yourcommercials to start no earlier than 6 a.m. and run no later than 7p.m., or in whatever combination of times will suit your businessbest. Provide them with a logical reason, such as "My businessisn't open that early/late."

One caveat of lower rates is your spots are vulnerable to being"bumped" by a higher-paying client. First and thirdquarters are the least-common times for low-cost spots to be bumpedbecause most radio stations--unless they carry loads of sportsprogramming--are hurting for business.

You can lower the possibility of getting bumped by asking yourradio rep every day to provide you with the time slots you'vebeen given for the next day. If they know you'll be seeing yourtimes in advance, they may work harder to give you good ones. Ifthe times aren't well-distributed or you're getting bumped,postpone or cancel the schedule.

You can also take advantage of special packages offeredthroughout the year that come with attractive rates to bolstersagging quarters. In this deal, you purchase a specified number ofcommercials plus a number of promotional and sponsor IDannouncements. I recently consulted with a gentleman who wasoffered a Christmas Music package right before the holiday season.The normal $150-per-spot rate had been reduced to $50 per spot, butthe station rep said everything in the package had to run duringDecember. The client felt January was a better time for him toadvertise, so he asked if the station would run the promotionalannouncements tying his business to the Christmas event duringDecember and move his 60-second commercials to January. The answerwas no.

The sales rep's true reason for saying no was that thestation needed to show the billings in December to make budget. Iasked if they could bill the client the full amount in December forthe promotional mentions and write the remainder of the contract toshow the 60-second spots as "no charges" to be run inJanuary. The answer turned to yes.

Here are more tips to help you find the best rates:

  • Let the salesperson know you're talking to other reps.
  • Gather proposals from other stations and see if the salespersonwill beat the best one.
  • You're the client and it's your money. Always bewilling to walk away.

Don't be intimidated by advertising reps who say no or whoare resistant to negotiating prices and placement to meet yourneeds. They not only want and need your business, they also want tokeep your dollars away from their competitors.

Kathy Kobliski is the founder and president of Silent PartnerAdvertising, where she oversees multimedia advertising budgets forretail and service clients. Her book, Advertising Without an Agency, was writtenfor businesses owners who are working with small advertisingbudgets and can't afford professional help. You can reach Kathyvia her website at http://www.silentpartneradvertising.com.


The opinions expressed in this column arethose of the author, not of Entrepreneur.com. All answers areintended to be general in nature, without regard to specificgeographical areas or circumstances, and should only be relied uponafter consulting an appropriate expert, such as an attorney oraccountant.

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