LEVERAGE RATE INCREASES

During lunch last week, I couldn’t help but overhear a conversation taking place at the next table.

A salesperson for a major metro publication was giving her client the rundown on their 2008 media kit, but it was only a formality as the client was obviously very happy about the publication and the results their advertising had gotten.

Then, the salesperson used the classic strategy that I employed during two decades selling advertising in just about every media available: she leveraged next year’s rate increase.

“Our rates are going up 5% next year, but if you sign before the end of October, I can lock in this year’s rate for you.”

The client never hesitated at all when she asked the salesperson to draft up the paperwork and send it over as soon as possible so they could move ahead.

There are two lessons here and they apply no matter what product or service you sell.

First, whatever you sell, raise your rates in 2008 by at least 5%. 10% would be better.

Second, give every prospect a chance to save money by making a purchase or signing a contract now to lock in the 2007 rate. Leverage rate increases to make more sales right now.

And make plans now to do the same for 2009!