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Maximize Your Underwriting Revenue by Managing Your Inventory

Maximize Your Underwriting Revenue by Managing Your Inventory. Kirk Nelson, CRMC Vice President, Sales & Marketing. Inventory Behaving Badly. I always have tons of inventory… I have plenty of inventory, but Morning Edition is always sold out…

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Maximize Your Underwriting Revenue by Managing Your Inventory

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  1. Maximize Your Underwriting Revenue by Managing Your Inventory Kirk Nelson, CRMC Vice President, Sales & Marketing

  2. Inventory Behaving Badly • I always have tons of inventory… • I have plenty of inventory, but Morning Edition is always sold out… • Our rates in morning and afternoon drive are FANTASTIC, and we still have tons of inventory left to sell…

  3. Inventory Behaving Badly • My drive time inventory is sold out, but I’ve got tons in midday, evenings and weekends… • There are certain shows on the weekend where inventory always seems to be sold out, like Car Talk, but nobody seems to want to buy the other programs… • We are sold out for the next six weeks…

  4. Inventory Behaving Badly • I’m only selling about 60% of my stations drive times, and only 25% of all the other dayparts… • I’m doing a great job selling out my stations inventory, but I still haven’t made budget. I need more inventory…! • So what’s the point ?

  5. Question:IS YOUR INVENTORY A DIRECT REFLECTION OF HOW YOU ARE SELLING UNDERWRITING?

  6. Inventory Management Path • Set Up Reports • Look for Stories • Create a Sales Strategy • Monitor Sales Behavior • Evaluate Results

  7. Traffic Report Set-Up • Avails Report • Average Unit Rate report • Billing History - Scheduled • Billing Projection – Contracted • Category Report – Conflict Codes • Aged Receivables

  8. Look For Stories • The obvious: • Tons of inventory? • Disproportionate use of drive times? • Weak selling periods? • Sold out for next 8 weeks? • Some weekend shows sold out? • Selling Morning Edition as daypart?

  9. Not so Obvious: • Rate averaging over schedule? • Soft major categories? • Categories our revenue comes from? • Too much billing from too few accounts? • Too many small underwriters? • Not attaching revenue to inventory?

  10. Create A Sales Strategy Four Guiding Principles • Grid Theory • Locomotive Theory • Belief System • Pricing Philosophy

  11. What’s Your Total Inventory Capacity

  12. What’s Your Total Inventory Capacity

  13. What’s Your Total Inventory Capacity

  14. Pricing Philosophy • Rate Card • Rate Card Guidelines • Standard Packages

  15. Create a Sales Strategy Three Common Themes • Tons of extra inventory - December & January • Business soft during Summer • Disproportionate use of drive times

  16. Strategy Number One Situation: lack of demand Dec/Jan Solution:“Thank You” • December 5 - Research inventory • Available late December – Early January • Sales offering • Prior year underwriters only • Make it physical • Track daily

  17. Strategy Number Two Situation: Soft Summer – Rep Introduction Solution: Summer offering • Tiered discounts • Plans limited to 13 weeks • Provided incentives

  18. Strategy Number Three Situation: buying only Morning Edition Solution: Retailers Kit Four marketing legs • Web page • Station promos • Underwriting credits • Static window sticker

  19. Only A Fully Developed Strategy Can Be Evaluated

  20. Monitor Sales Behavior • Weekly Behavior • Order Entry • Schedule inventory expectations • Rates assigned to inventory • Rate alignment with expected standards • Proper coding • Presentations • Amount of ask (share or rate) • Negotiation outside of standards • Pending Business

  21. Monitor Sales Behavior • Monthly Behavior • Projections • Pacing • Average unit rate by daypart • Percent of inventory sold by daypart • Expected growth by rep experience • Entry level • Experienced • Seasoned

  22. Evaluate Results • Based on your sales strategy • Met or exceed budget expectations • Collections pacing with revenue • Average AR report • Increase sell of spread • +/- AUR • Increase unit count per month • Average spending by account • Revenue growth by rep

  23. Added Value Let you pricing structure work for you • Specific program purchase • Long term discounts • Contract length • Non-profit rate • Priority codes • Packages promote rate or spread • Exceptions

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