cash flow pricing for profitable high yield selling
TRANSCRIPT
Sales Reps Time• Most Valuable Finite Resource• Increasing Yield though– Improved selling process–High Yield Selling• Higher Frequency• Higher Average Ticket• Strategic Bundling
Proposed New Rates1/8th 1/4 1/2 Full
1x $ 180.00 $ 315.00 $ 540.00 $ 900.00
3x $ 144.00 $ 252.00 $ 432.00 $ 720.00
5x $ 126.00 $ 220.50 $ 378.00 $ 630.00
8x $ 108.00 $ 189.00 $ 324.00 $ 540.00
13x $ 90.00 $ 157.50 $ 270.00 $ 450.00
Why Quantitative?• Relatively high fixed base costs–News gathering–Distribution–Print
• Relatively tiny incremental costs• Extremely competitive market
Must be High Volume• Marketplaces are king– No place for skinny products
• Fully loading high base fixed costs onto low volume isn’t an option
• High retention comes from advertiser ROI• The old ‘barriers to entry’ we enjoyed in
print are gone, much more market driven
Equals…
• Disinterested Consumers• Poor Advertiser ROI• High Advertiser Churn• Too much sales time devoted to
looking for new advertisers
Considerations• Base delivery cost• Incremental delivery cost• Production capacity• Yield on the reps time–Same ad; Sub, TMC and digital
• Optimum Volume
For Example• Carrier Delivery $100/M, average 4
preprints• “Delivery Cost per preprint is $25”• What happens if you lose one? “$33”• Will the last guy left pay $100?• Then don’t do this