For some of us in sales, nothing brings up fear like a negotiation. And, to me, nothing eases that fear better than, get this, being prepared for a negotiation! Alexandra Carter is the Columbia Law School Mediation Director and wrote the book Ask for More.
Read it.
She describes how negotiations can be like fights and bring up fear in us. It doesn’t have to be that way and with proper preparation it can be avoided. Carter reminds us that some of the most important questions we can ask in a negotiation are the ones we need to ask ourselves first. Like in radio sales, a typical #1 question is how much money should I ask for? I think the best answer is to ask yourself question #2: what’s the problem I want to solve?
Let’s say management has demanded a return to 2019 billing levels and a 15% increase in sales for the 2021. That’s a problem. The solution? You will need more annuals, clients who buy more than one station from you, and spend at least 15% more than your average monthly order.
So, imagine this common scenario: You have a meeting with a new client who has expressed interest in radio advertising, something they have not done before. Let’s start applying our logic to how this opportunity can solve our problem, help the client, and steer the conversation to eliminating objections later in the process.
Since we know we need more annual clients buying multiple stations and spending more money we open with the GOOD, BEST, and BETTER budget establishing system.
Try this!
If your average monthly order is $1500 on one station for 13 or 26 weeks, you will need to change that to solve your annual goal problem. Start the process by telling the prospect that you work with annual investments that get the best rates and qualify for a 2-week cancellation. So, why not design a campaign to work? And, by asking our clients to spend at least 15% more for 2-3x longer we will also likely meet our annual goals. Here’s how that sounds:
“I work best with three different types of clients primarily. Most get GOOD results, but some get BEST or BETTER results. I have some annual advertisers who buy one station every month at about $1800 a month or every other week about $900 per week (GOOD). I have a few larger clients, car dealers for example, who spend about $13,000 a month or $3200 every week on all 4 of our radio stations (BEST). I find most of my clients though buy the 2 most complimentary stations for their business in the $3400 per month range, get a 2-station discount and run every other week (BETTER).
“Which one sounds closest to your situation? “
Then, shut up. Most often clients will gravitate to the middle, BETTER, and take the last offer you put out there. And, if they do, you will get an annual advertiser spending way over a 15% increase on your average budget. In fact, even if they take the GOOD option, they are still helping you hit your 15% increase. Make sure you guide the budget negotiation to where you want to see it end and everybody wins!
Don’t settle for less, ask for more!
Jeff Caves is a sales columnist for BSM working in radio and digital sales for Cumulus Media in Dallas, Texas and Boise, Idaho. He is credited with helping launch, build, and develop Sports Radio The Ticket in Boise, into the market’s top sports radio station. During his 26 year stay at KTIK, Caves hosted drive time, programmed the station, and excelled as a top seller. You can reach him by email at jeffcaves54@gmail.com or find him on LinkedIn.
