Most 6 popular pricing strategies used in radio
Product Line Pricing
Cost Plus Pricing
Here the station sets a low price to stimulate sales or grow market share. Once the objective has been achieved the station can increase the price.
Setting a price in comparison with your competitors - newspapers, leaflets, directories.
Pricing different products within the same product range at different price points.
Using the psychology of price and the positioning of price within the market place.
The station sells 'optional' extras alongside the product to maximise turnover.
Here the station adds a percentage to the cost, as the profit margin, to come to the final price
At launch a station might set a low price to get advertisers and sponsors onboard and then increase the pricelist as their client base increases.
Some stations offer a price matching service to match competitors.
Stations offer a range of advert, sponsorship and comprod packages to maximise turnover and profits.
Stations might charge £199 instead of £200 or price a package at £4 p/day instead of £120 p/month
Stations start with a basic price and then offer bolt-on extras (or give them away in lieu of a cash discount).
This is most often used when pricing commercial production.