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Call her "Owner"

What a neat story! It sounds like she's giving a new lease on life to an AM station that otherwise might have not survived, or at the very least would have flipped to another third tier talk station.
 
Still not as bad as people who purchase a brand new BMW or Mercedes, only to have the car depreciate 75% in value over the first few years. Not to mention, many of those cars cost far more than what she spent on purchase of KDUN. The radio station will probably give you more bang for your buck anyway...
 
fordranger797 said:
Still not as bad as people who purchase a brand new BMW or Mercedes, only to have the car depreciate 75% in value over the first few years. Not to mention, many of those cars cost far more than what she spent on purchase of KDUN. The radio station will probably give you more bang for your buck anyway...
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At least the payments for a Mercedes or BMW aren't typically $2,500 per month, which is about what the power bill would be for a 50kW AM station playing mostly toward the Pacific Ocean. Indeed one could argue the AM station is probably close to fully depreciated anyway, so she bought it near the bottom already. Costs now are just operation and maintenance, which isn't insignificant. But, as I mentioned, she no doubt can afford it.
 
Kelly A said:
At least the payments for a Mercedes or BMW aren't typically $2,500 per month, which is about what the power bill would be for a 50kW AM station playing mostly toward the Pacific Ocean. Indeed one could argue the AM station is probably close to fully depreciated anyway, so she bought it near the bottom already. Costs now are just operation and maintenance, which isn't insignificant. But, as I mentioned, she no doubt can afford it.
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Let's just say that the station is able to bring in about $5,000 per month. This is a fairly conservative estimate for revenue, as it seems like most small stations bring in six times that value (let me know if my numbers are off). She pays the bills to keep the station on the air, and leaves a little meat on the bone for other expenses. Over the course of one year she makes approximately $60,000 in advertising revenue. She spends about $30,000 in power costs alone. With the rest of that $30,000, there are surely other expenses that come up. There aren't going to be any live hosts to pay, and hopefully her sales representative(s) have already been paid via commission. I'm not an engineer and can't comment on the compensation for their service in structured, but I imagine she would probably hire an engineer to come once per week. She might walk out the door with $10,000 in her pocket over the course of a year (again, trying to be conservative here), and I'm sure that most people would classify that as a failing business. With that being said, she could very break even after a few years, and she could even apply to drop the power down, which might help her accomplish that goal.

Either way, she gets some enjoyment out of it, and probably doesn't lose much by the time that she's had enough of the business or when AM radio starts shutting down. It's not a great business model for anyone who wants to make money, that is for sure.
 
Good luck, Delilah! What a household name she has become in 30 years time. Some think of her as "that sappy love songs lady that comes on at night," others think of her as a ray of hope when they are going through a tough time, others still enjoy her Christian approach to problems.
 
fordranger797 said:
Let's just say that the station is able to bring in about $5,000 per month. This is a fairly conservative estimate for revenue, as it seems like most small stations bring in six times that value (let me know if my numbers are off). She pays the bills to keep the station on the air, and leaves a little meat on the bone for other expenses. Over the course of one year she makes approximately $60,000 in advertising revenue. She spends about $30,000 in power costs alone. With the rest of that $30,000, there are surely other expenses that come up. There aren't going to be any live hosts to pay, and hopefully her sales representative(s) have already been paid via commission.
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Just a few other general expenses to consider: FCC Lawyer retainer and fees, State (Oregon B&O State tax is a b*tch) Federal Taxes, Transmitter Site Lease, annual tower maintenance, phone and Internet, building and land maintenance (mow/maintain the land around the building and towers), marketing costs (newspaper ads, billboards, signage), Insurance, ASCAP/BMI fees, FCC regulatory fees, sales commission(s). I could go on, but you get the idea.
fordranger797 said:
I'm not an engineer and can't comment on the compensation for their service in structured, but I imagine she would probably hire an engineer to come once per week. She might walk out the door with $10,000 in her pocket over the course of a year (again, trying to be conservative here), and I'm sure that most people would classify that as a failing business. With that being said, she could very break even after a few years, and she could even apply to drop the power down, which might help her accomplish that goal.
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I'd say that my list above would easily eat up your $10K and then some. A pre-2008 example from my experience from just one Class A FM station that I'm very familiar with:
Market: Central Washington State
Population inside city grade signal: 36,000
Number of radio signals inside station coverage: 8-10
Format: Classic Hits (WW1 Satellite-programmed)
Best Revenue month: $14K
Average Revenue month: $8K
Average Revenue after 2008 Crash: $4-6K per month

Now also consider KDUN is an AM station..

fordranger797 said:
Either way, she gets some enjoyment out of it, and probably doesn't lose much by the time that she's had enough of the business or when AM radio starts shutting down. It's not a great business model for anyone who wants to make money, that is for sure.
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That's what this boils down to. This is a hobby/project/labor of love, not a viable business. Even if she's Delilah, this station will run in the red. But that's okay. She's got the money and the interest. Why not play radio owner for a year or two? Chances are the money pit syndrome will get old, and she will either move up to FM stations, or cut bait and stay with being a syndicated host.
 
Kelly A said:
A pre-2008 example from my experience from just one Class A FM station that I'm very familiar with:
Market: Central Washington State
Population inside city grade signal: 36,000
Number of radio signals inside station coverage: 8-10
Format: Classic Hits (WW1 Satellite-programmed)
Best Revenue month: $14K
Average Revenue month: $8K
Average Revenue after 2008 Crash: $4-6K per month
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You're talking about KEYG-FM, right? I've said it before and I'll say it again...they get out. Way further than city-grade. About 60% of the eastern 2/3rds of WA gets at least some signal from KEYG. And since they were bought out by the KCSY folks for Sunny FM, Wenatchee advertising is just as common as Moses Lake and Grand Coulee businesses. That's more revenue, a lot more people. Albeit they have had that 98.1 in Malaga for many years.
 
crainbebo said:
You're talking about KEYG-FM, right?
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No different station. Closer to the Cascades.
crainbebo said:
I've said it before and I'll say it again...they get out. Way further than city-grade. About 60% of the eastern 2/3rds of WA gets at least some signal from KEYG. And since they were bought out by the KCSY folks for Sunny FM, Wenatchee advertising is just as common as Moses Lake and Grand Coulee businesses. That's more revenue, a lot more people. Albeit they have had that 98.1 in Malaga for many years.
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Post 2008, KEYG was averaging a little less than 15K per month, but that would eventually decrease a lot more going into the pandemic. And yes, KEYG has one of the best signals West of Spokanastan. Problem was, the population density went from towns with a couple thousand, or a couple hundred. The rest was jackrabbits. Covering a lot of real estate doesn't translate into revenue. Only expense.
 
Jackrabbits AND rattlesnakes, like the aggressive sucker that I spotted yesterday in Ellensburg's Robinson Canyon. Just started rattling outta nowhere, loudly, and started to coil himself up next to the trail. I said 'heck no', turned around, and went on a game trail 15 ft up the hill just to avoid him, then rejoined the trail. They are out of their dens!
Ironically I spotted another rattlesnake towards the start of the trail, and he didn't notice me or start rattling. But I heard a rustle in the cheatgrass.
 
I know, I'm hijacking it a little bit. Just found it ironic that Kelly mentioned the jackrabbits in between the small towns of eastern WA.
Onward with our discussion of Delilah....
 
Kelly A said:
Just a few other general expenses to consider: FCC Lawyer retainer and fees, State (Oregon B&O State tax is a b*tch) Federal Taxes, Transmitter Site Lease, annual tower maintenance, phone and Internet, building and land maintenance (mow/maintain the land around the building and towers), marketing costs (newspaper ads, billboards, signage), Insurance, ASCAP/BMI fees, FCC regulatory fees, sales commission(s). I could go on, but you get the idea.

I'd say that my list above would easily eat up your $10K and then some. A pre-2008 example from my experience from just one Class A FM station that I'm very familiar with:
Market: Central Washington State
Population inside city grade signal: 36,000
Number of radio signals inside station coverage: 8-10
Format: Classic Hits (WW1 Satellite-programmed)
Best Revenue month: $14K
Average Revenue month: $8K
Average Revenue after 2008 Crash: $4-6K per month

Now also consider KDUN is an AM station..


That's what this boils down to. This is a hobby/project/labor of love, not a viable business. Even if she's Delilah, this station will run in the red. But that's okay. She's got the money and the interest. Why not play radio owner for a year or two? Chances are the money pit syndrome will get old, and she will either move up to FM stations, or cut bait and stay with being a syndicated host.
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Thanks for providing a little additional information, Kelly. Now that you bring attention to it, there are quite a few expenses that still are outstanding. Notably, KDUN is run out of a studio in a small office complex in Reedsport. While the cost of rent is not going to be insanely high, it still is going to eat into the budget. Of course, there will be expenses associated with that office lease, and she'll probably need to provide a copier and other office supplies to any account executives who work out of that office. When you factor everything in, the numbers just don't add up. I thought my $5,000 per month revenue estimate was fairly accurate until I started exploring the area on Google Maps. Looking around the area you will quickly discover that there aren't many businesses that would be a good target for a sales package. Coos Bay is likely the only municipality with enough commerce.

It seems fairly unlikely that she's going to make any profit off of this station, this we already know. However, reducing the power to 10kw day to stop wasting some of the power out on the Pacific Ocean might be a wise move. I still don't think that it's a terrible move on her part, as the hobby aspect likely means more to her than getting rich. There are tons of radio enthusiasts out there who would love the chance to own their own station, and run it the way that they want to. What they don't understand is that radio is an impossibly hard business to actually turn a profit. Small businesses already fail at alarming rates due to high the cost of commercial office space. Delilah has been in this business a long time and already understands the associated challenges, and willingly decided to accept the task anyway.
 
fordranger797 said:
I thought my $5,000 per month revenue estimate was fairly accurate until I started exploring the area on Google Maps. Looking around the area you will quickly discover that there aren't many businesses that would be a good target for a sales package. Coos Bay is likely the only municipality with enough commerce.
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Yeah, I went through the same exercise. It seems there are only 4 broad line retailers in the city of Reedsport: a Safeway, a hardware store and two dollar stores.

On the other hand, there's not immense competition from other media on the Oregon coast. Still, I'd say it's an uphill climb to develop meaningful revenue.
 
When International Paper closed the nearby paper mill in Gardiner (1999) employment really took a hit in the Reedsport area. (The KDUN transmitter is near "East Gardiner".) With consolidation, even the local KJMX FM closed down its Reedsport studios and moved to Coos Bay, another economically suffering area. Southwest Oregon is certainly going though some tough times.

For local-ownership-centric FM listening interest , try KLJN ("The Legend" ) and KDCQ "The Dock". Bicoastal Media is the big player in the area but that does not say much. Of course, don't forget listening to KMHS at Marshfield HS. - "Pirate 1420 AM and 105.1 FM" plus KMHS-FM on 91.3 : https://s9.voscast.com:9647/stream .

The locals in "metro" Coos Bay-North Bend as is have plenty of radio listening choices.
 
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