"Northern Cali"

[wired]

****DISCLAIMER**** I have NO Intent of PURCHASING THIS Station!!!* I wish
i could, but unfortunately, am able to buy it : ( But, the fun
part of this board/forum, is to open up discussions about radio
and broadcasting, and below - well, i have a topic for review: ****

Since there isnt a northern cali-board, and market #212
(ashland, oregon) is close to market #226(redding,cali)...
I thought i would post this here:
-------------------------------------------------------------------------
http://broadcaststations4sale.com/sale.html
(hit ctrl + the F key) type in "850" and -that is this station-
-
buysellradio.com (site is not loading now) however, I know I have
seen listed on buysellradio.com and I am certain it is one
of the stations that lists a link for 'more details' In fact, I
remember clicking on it, and it included pics/details of the sale,
area demo's, etc..etc...
-
the station: KZRO-FM 100.1 MHz
www.zchannelradio.com
-
Big Tree Communications.
Dunsmuir, California
"Z-Channel Radio"
-
Coverage Map:
http://www.radio-locator.com/cgi-bin/pat?call=KZRO&service=FM&status=L&hours=U

It barely makes it into the redding,CA market, and is 'reealy' pushing it if
it is audible any where in Oregon.(according to the coverage map). However,
The brief write up makes the mount shasta resort area..
well, out to be amazing!! first, is this true ??
Second: does the station really cover where it says it does, or
techically cover it, but there are soo many mountains, while it physically
covers the area, there is NO ONE There to listen to it;
and [3rd] and, the most important question, *IF* (see disclaimer above)
*IF* i were serious and interested in purchasing 100.1 FM kzro-Dunsmuir,CA
would it be worth the 850 K? or, is that actually a 'steal' considering
what you are getting; if not, what in any one's opinion would be
the most to be expected to pay for this frequencey... and, finally,
even if 850,000 is fair, would you want it ??
-
Oh, I also was going to inquire: Is classic rock the only 'real'
format you can run on this channel @ 100.1 FM/ would a top40, Current/or
Loud-Modern Rock format survive ???
or, how about a dance station...would that be able to thrive????/considering
the tourist that potentially swell the population, as stated, in the
write up to sell the station...a "party"FM-sound would be able to get
the best of the people stoppin in saying hi : )

Welcome Input : )
I hope i have alot to read !!! thnx.

 

[clichemoth]

> ****DISCLAIMER**** I have NO Intent of PURCHASING THIS
> Station!!!* I wish
> i could, but unfortunately, am able to buy it : ( But, the
> fun
> part of this board/forum, is to open up discussions about
> radio
> and broadcasting, and below - well, i have a topic for
> review: ****
>
> Since there isnt a northern cali-board, and market #212
> (ashland, oregon) is close to market #226(redding,cali)...
> I thought i would post this here:
-------------> ------------------------------------------------------------
>
> http://broadcaststations4sale.com/sale.html
> (hit ctrl + the F key) type in "850" and -that is this
> station-
> -
> buysellradio.com (site is not loading now) however, I know I
> have
> seen listed on buysellradio.com and I am certain it is one
> of the stations that lists a link for 'more details' In
> fact, I
> remember clicking on it, and it included pics/details of the
> sale,
> area demo's, etc..etc...
> -
> the station: KZRO-FM 100.1 MHz
> www.zchannelradio.com
> -
> Big Tree Communications.
> Dunsmuir, California
> "Z-Channel Radio"
> -
> Coverage Map:
http://www.radio-l> ocator.com/cgi-bin/pat?call=KZRO&service=FM&status=L&hours=U
>
>
> It barely makes it into the redding,CA market, and is
> 'reealy' pushing it if
> it is audible any where in Oregon.(according to the coverage
> map). However,
> The brief write up makes the mount shasta resort area..
> well, out to be amazing!! first, is this true ??
> Second: does the station really cover where it says it does,
> or
> techically cover it, but there are soo many mountains, while
> it physically
> covers the area, there is NO ONE There to listen to it;
> and [3rd] and, the most important question, *IF* (see
> disclaimer above)
> *IF* i were serious and interested in purchasing 100.1 FM
> kzro-Dunsmuir,CA
> would it be worth the 850 K? or, is that actually a 'steal'
> considering
> what you are getting; if not, what in any one's opinion
> would be
> the most to be expected to pay for this frequencey... and,
> finally,
> even if 850,000 is fair, would you want it ??
> -
> Oh, I also was going to inquire: Is classic rock the only
> 'real'
> format you can run on this channel @ 100.1 FM/ would a
> top40, Current/or
> Loud-Modern Rock format survive ???
> or, how about a dance station...would that be able to
> thrive????/considering
> the tourist that potentially swell the population, as
> stated, in the
> write up to sell the station...a "party"FM-sound would be
> able to get
> the best of the people stoppin in saying hi : )
>
> Welcome Input : )
> I hope i have alot to read !!! thnx.
>

That's (potentially) a shame. I quite enjoy Z-100's stream and always liked it while I lived in their coverage area as well. Hopefully, someone who cares about radio buys it and it doesn't become some satellite religious outlet (not like Siskiyou County doesn't already have one of those anyway).

There are only 2 other commercial stations broadcasting to the trees out there, one country and one talker, both with much bigger signals. You'd really have a lot of leeway as far as formats go. CHR, AC, AAA, Variety Hits, oldies...all could potentially work just as well as classic rock has, IMO.

Heck, yeah, if I had the necessary scratch, I'd definitely be interested in buying this small-town station in one of the most beautiful and pleasant parts of the country. But that's the thing. It is a small-town station. Even at the height of ski season, you won't have a top-100 market going. If you want to superserve Weed/Mt. Shasta/Dunsmuir and be a part of the community, you could be quite successful. Just plugging something in off the bird and walking away would not work at all.

 

[wired]

My Dream:

thank you, cliche-moth(i hope i spelled that right)..
for the detailed reply. I am uncertain why it took soo long..
but i greatly apperciate it. That reply covered all i needed/wanted
to know..about the area and people; about the radio station's philosophy of
what would work and what would not...etc,etc. Sometimes you
read these Buy/sell websites..and "its" a steal..just to find
out the real reason it is being sold..or in the case of "bay city,tx"
@ 92.5 just 'south' of houston (major market #7) ..and to later
my find out it is about 100 miles away and actually Inaudible in houston.
<>
My Dream:
would be to run a station, and not just plug in and play, but
to give a frequencey a REAL personalilty and TONS of promotion!!!

My first choice
"Pop-40" format: Dance-friendly radio hits, with some mainstream
"rock" (the mtv rock) and top-40 rock..Then I would *selectively*
add some r&b and rap..it would be an interesting of what DOES it
get on the aire and what does not.

2nd Choice:
A 90s rock (metallica, guns&Roses,*little nirvana though)..and then
some current rock..but the "current" would be after the songs already
have tested the waters..iE: the "new" 'hit' from an established band
has already been played on other stations..maybe the summer SONG
i would add just in time for football season...

I would want to be a fun station...and NOT being a top100 market
is music to my ears. Smaller-town radio is what i envision
versus the "big time" if you are looking to be adventureous.

Now, if interested: could you post what you estimate what the
annual cost of operations would be..not the "extra's" of giving
away lift tickets; cars, prizes etc...but more of the "boring"
stuff, avg. costs of operation, the licensing to play music;
building rental/or mortgage payment on property, legal" fees,
such as lawyers/attorneys..etc,etc..

if it is my dream..i need to know how to set aside each year..
and, i have always wondered..Since I have heard Both extreme
ends of the spectrum....it would be nice to hear an accurate
bare bones, "price tag" to place on a station...
(*A fullly operational station, not some part 15, or LP-FM..etc,etc).

THANKS

 

[jetman71]

Re: My Dream:

The station is worth, in my opinion...somewhere in the neighborhood of $225-$300K. Now that is just for the license and transmitting gear. Not too sure, of what the studio equipment is worth, maybe another $20K. Office furniture and so on...not all that important at the moment. What's the value of their web stream...unknown at this point and would be not nearly as important as operating the station and becoming known in the business community.

The station is actually, (if memory serves me correctly) licensed to the small community of Dunsmuir and has a studio in Mt. Shasta City. Formatically, you would want to stick with a Mainstream appeal. The average age for that part of the county is a bit older then...say Medford or Redding. I would consider using the Waitt Radio Networks Storq system (contact Erle Younker at Waitt Radio Networks to learn more) but yet keep at least the mornings and afternoons live with local talent.

For money...remember...anything is only worth what a potential buyer is willing to pay. Selling prices are often not what they appear. I would suggest that you contact everyone you know and come up with as much capital as you can use those $$ as a downpayment and then borrow the remainder from a "local" bank in the Dunsmuir/Mt. Shasta/Redding area (maybe Redding Bank of Commerce). Given that the seller has had the station on the market for quite some time now, $200-$300K may sound pretty good about now. I believe the current licensee has been practically running the station pretty much solo and must be burnt out. Oh, annual operating expenses will be between $300-$500K…don’t kid yourself and think that it can be done for anything less. Annual billing could be as high (with the right people on board of course) as $500K after about the first 18 months and then grow by close to 10% for the following year.

At some point, if you decide to proceed...email me your phone # at [email protected] and we can communicate further.





> thank you, cliche-moth(i hope i spelled that right)..
> for the detailed reply. I am uncertain why it took soo
> long..
> but i greatly apperciate it. That reply covered all i
> needed/wanted
> to know..about the area and people; about the radio
> station's philosophy of
> what would work and what would not...etc,etc. Sometimes
> you
> read these Buy/sell websites..and "its" a steal..just to
> find
> out the real reason it is being sold..or in the case of "bay
> city,tx"
> @ 92.5 just 'south' of houston (major market #7) ..and to
> later
> my find out it is about 100 miles away and actually
> Inaudible in houston.
>
> My Dream:
> would be to run a station, and not just plug in and play,
> but
> to give a frequencey a REAL personalilty and TONS of
> promotion!!!
>
> My first choice
> "Pop-40" format: Dance-friendly radio hits, with some
> mainstream
> "rock" (the mtv rock) and top-40 rock..Then I would
> *selectively*
> add some r&b and rap..it would be an interesting of what
> DOES it
> get on the aire and what does not.
>
> 2nd Choice:
> A 90s rock (metallica, guns&Roses,*little nirvana
> though)..and then
> some current rock..but the "current" would be after the
> songs already
> have tested the waters..iE: the "new" 'hit' from an
> established band
> has already been played on other stations..maybe the summer
> SONG
> i would add just in time for football season...
>
> I would want to be a fun station...and NOT being a top100
> market
> is music to my ears. Smaller-town radio is what i envision
> versus the "big time" if you are looking to be adventureous.
>
>
> Now, if interested: could you post what you estimate what
> the
> annual cost of operations would be..not the "extra's" of
> giving
> away lift tickets; cars, prizes etc...but more of the
> "boring"
> stuff, avg. costs of operation, the licensing to play music;
>
> building rental/or mortgage payment on property, legal"
> fees,
> such as lawyers/attorneys..etc,etc..
>
> if it is my dream..i need to know how to set aside each
> year..
> and, i have always wondered..Since I have heard Both extreme
>
> ends of the spectrum....it would be nice to hear an accurate
>
> bare bones, "price tag" to place on a station...
> (*A fullly operational station, not some part 15, or
> LP-FM..etc,etc).
>
> THANKS
>

 

[radiospasm]

Re: My Dream:

You are correct. I don't think this guy will ever get $850k. I also don't think he's desperate to sell. He's had it on the market so long just waiting for that one person to come by and overpay for it. It makes okay money, but not enough to justify over 3/4 of a million dollars in Mt. Shasta. 6-8 years to make your money back. No thank you.

 

[Ed_Walker]

The only way to answer those questions is to start with a visit to the market.

The station's 60dbu coverage just falls short of some population centers:

http://www.fcc.gov/fcc-bin/FMTV-service-area?x=FM523992.html

A qualified consulting engineer can tell you whether any upgrades are possible.

Formatics: Thats all pretty-much market driven, despite what you personally want to do.

And formatic changes (ultimately good or bad) can have an immediate effect on your cash flow (good=short term...bad=much longer).

Remember that you're buying not just physical assets, but the goodwill and cash flow of the existing operations. Remember, its a business.

 

[wired]

Re: My Dream:

*Thank YOU* for the detailed post/reply to this thread.
I always enjoying reading about radio, "on and off" the
aire...all about broadcasting, i can never get enough!!!!

*PS*
Please read the disclaimer in the original message:

> At some point, if you decide to proceed...email me your
> phone # at [email protected] and we can communicate
> further.

*But thank you, i just may email you : ) *

 

[wired]

Re: My Dream:

*In the station owner's defense: It is listed you do get
"aLot" for your money.. on the [buysellradio.com] listing,
http://buysellradio.com/forsale.html
(Again, ctrl +F) and type in "850" find it pretty fast..
then, click on "details"

Or, you can click on this link:
http://www.zchannelradio.com/kzro4sale_web.htm

but does all this "extra" really add up to the +500K ???

> You are correct. I don't think this guy will ever get $850k.
> I also don't think he's desperate to sell. He's had it on
> the market so long just waiting for that one person to come
> by and overpay for it. It makes okay money, but not enough
> to justify over 3/4 of a million dollars in Mt. Shasta. 6-8
> years to make your money back. No thank you.
>
-Interesting, being on the other side of the nation, it is
tough to "know" what is 'fair' and what is "overpaying" for a
station..this board is a great barometer..i hope there are
more exciting posts such as these, in the future.

*Pouts* You really dont think a "pop40" sound would make it?
-OR-an 'aggressive' loud-rock station ?

 

[Andy_Brown]

Re: My Dream:

> *Pouts* You really dont think a "pop40" sound would make it?
>
> -OR-an 'aggressive' loud-rock station ?

Remember, if you buy a station and change it's format, you will initially lose some sponsorship because not only have you changed the "sound" but also may have shifted the intended demographic target. Sponsors whom may have gone along with the change after being schmoozed by the old owner now see a new owner and figure it may be prudent to redirect their advertising dollars and wait for the smoke to clear. There may be new sponsorship that is attracted to the changes, but generally it takes time to bring them on board.

Many small market purchases pencil out on paper and look pretty good if the cash flow of the previous ownership can be duplicated. It's a big if.

Small station owners don't live in a cave. They know the consolidation of ownership is headed their way. If you were keeping close track over the last 10 years, you'd know that after the big media giants assimilated the top 50 markets they headed towards the 51st-100th markets and after that ... well, you get the idea.

Clear Channel Communications, Cumulus Media Inc., Disney, Emmis, Entercom Communications, and Viacom combined own 18 percent of all radio stations in the United States. However, measuring by the number of stations (1,982) alone misleads. Audience share for the these stations now covers the possible market share. Radio audience percentages have fallen off slightly in the past decade, however 93 percent of citizens in the U.S. claim to listen to radio at least once per day. Arbitron shows that of 287 (possible) radio markets,the top six media companies together account for reaching 100 percent of the listening audience in 2004.

http://www.thinkandask.com/news/mediagiants.html <P ID="signature">______________
Electricity is really just organized lightning.
~George Carlin</P>

 

[zdjman]

Re: My Dream:

Hey guys..
I've been a long time reader to the great submissions on this board
and having stumbled upon this message, had to respond.

Since I own the station in question, thought I'd jump in with
WITH A FEW THOUGHTS BELOW.

=======================================================================

> The station is worth, in my opinion...somewhere in the
> neighborhood of $225-$300K.

>>>> IF THAT WERE TRUE, I'D SHOOT MYSELF RIGHT HERE ON THE SPOT.
AS I RECALL, A CP HERE FOR THE SAME CLASS (C3) JUST WENT FOR AROUND $200K.
NO XMISSION SITE, NO YEARS TO GET IT IN, NO STUDIO, TOWER OR BUILDING, NO
EQUIPMENT, NO NOTHING, JUST THE CP.

============================================================================

Now that is just for the
> license and transmitting gear. Not too sure, of what the
> studio equipment is worth, maybe another $20K.

>>>> IT'S ALL NEW FROM 96, AND A QUALITY INSTALL AT THE STUDIO AND SITE AS
THIS IS 'MY DREAM' AS WELL. GETTING A TOWER ERECTED HERE WAS AN EXPENSIVE
AND LENGTHY PROCESS (SNOW CODES/COUNTY ETC) AND HAVING RENTERS ON THE TOWER
DOESN'T HURT. BUT YOU CAN TRANSMIT WITH WELL BELOW THE COST OF WHAT'S INSTALLED
HERE.. THAT SAID, THE COMMODITY HERE IS THE LICENSE. THE REST IS ICING.

===============================================================================

Office
> furniture and so on...not all that important at the moment.
> What's the value of their web stream...

>>> STREAM GOES WITH ME TO MY NEXT STATON (YOU MAY EVEN KNOW OF
A FEW THAT I'M LOOKING AT..) IT'S NOT THE STREAMING COMPUTER AFTER ALL,
A COUPLE OF BUCKS, BUT WHAT YOU PUT DOWN THE PIPE THAT COUNTS).

==========================================================================

unknown at this point
> and would be not nearly as important as operating the
> station and becoming known in the business community.
>
> The station is actually, (if memory serves me correctly)
> licensed to the small community of Dunsmuir and has a studio
> in Mt. Shasta City.

>>>> CORRECT. AFTER LIVING IN LA BUT GROWING UP IN A SMALL TOWN
OUTSIDE OF CHICAGO, YOU REALIZE THERE ARE OTHER FACTORS, LIKE A
SAFE COMMUNITY WHERE YOU CAN LEAVE YOUR DOORS OPEN, LET YOUR KIDS
WALK THE STREETS (IN MY CASE SKATEBOARDING THE STREETS).

===================================================================

Given
> that the seller has had the station on the market for quite
> some time now,

>>>> I WOULDN'T GO THAT FAR. I JUST HAVEN'T HIRED A BROKER YET.
PUT IT ON BUYSELL MID 2004.. BUT WITH THE BEATING THE STATE OF THE
PLANET AND INVESTMENT CAP HAS TAKEN OVER THAT PAST SEVERAL YEARS,
IT'S REALLY SOMETHING THAT I WAS EXPECTING.

MY OPINION, IF IT SELLS, OK. DOESN'T, OK. ENJOY WHAT I DO AND WHERE I AM. HOWEVER WIFE GREW UP HERE AND WANTS TO SEE SOMETHING BESIDES CALIFORNIA.

===========================================================================

$200-$300K may sound pretty good about now.

>>>> THIS PROVES YOU CAN'T BELIEVE EVERYTHING YOUR READ ON THE WEB...
AND, NOT A CHANCE.

===========================================================================

> I believe the current licensee has been practically running
> the station pretty much solo and must be burnt out.

>>>> DO RUN IT BY MYSELF EXCEPT FOR SALES. IT'S AMAZING WHAT YOU
CAN DO WITH COMPUTERS.. AND STILL LEAVE MYSELF TIME TO BE ON THE AIR
WEEKDAYS 6A-10A AND 6P-8P PACIFIC PROGRAMMING TWO FORMATS AND RUNNING
25 HOURS WORTH OF SYNDICATED PROGRAMS ON THE WEEKENDS. BURNT OUT? NAH.
BURNT OUT PEOPLE USUALLY WORK FOR SOMEONE OTHER THAN THEMSELVES.

=======================================================================

Oh,
> annual operating expenses will be between $300-$500K… don’t
> kid yourself and think that it can be done for anything
> less.

>>>> GUESS YOU DIDN'T SEE THE FOR SALE SITE. LISTS 2003 TOTAL
EXPENSES (INCLUDES EVERYTHING) FOR $31K. 04/05 WERE PRETTY MUCH IN
THE SAME BALLPARK, EXCEPT FOR PUTTING IN A NEW SCOTT SS32 SYSTEM
RECENTLY. BILLING FOR 05 WAS AROUND 140K WITHOUT TRYING. OTHERS CAN DO
THIS TOO, IF THEY HAVE TALENTS IN THE RIGHT AREAS AND ARE WILLING TO
DO VIRTUALLY EVERYTHING THEMSELVES. EITHER THAT, OR I 'HAVE' BEEN
KIDDING MYSELF SINCE I LIT THIS UP IN 96/97.

A FEW OTHER POINTS THAT WEREN'T MENTIONED IN REGARDS TO THIS STATION
AND THE MARKET:

[] THE STATION NOW OPERATES AT HALF AUTHORIZED POWER (12.5KW), AND CAN
INCREASE TO A FULL C3 (25KW) AT THE SAME SITE (WITH ADDITION OF 125' OF TOWER) OR MOVE TO AN 8100' PEAK DIRECTIONAL IN MOUNT SHASTA, OR MOVE THE TRANSMITTER TO ONE OF A FEW CHOICE SITES TO THE SOUTH, MUCH CLOSER TO REDDING, W/A 60DBU OVER THE COL. DUE TO TERRAIN SHIELDING (BIG ASSED MOUNTAINS), THE SIGNAL CHOKES AT THE CA/OR BORDER TO THE NORTH.. BELIEVE THE MEDFORD SIGNAL WAS MENTIONED HERE SOMEWHERE, BUT THE ONLY REFERENCE I MADE TO MEDFORD ON THE FOR SALE SITE WAS THAT WE GET BUYS FROM MEDFORD AGENCIES, AS WELL AS REDDING.

[] YES, THE PREDICTED 60DBU SIGNAL SCRAPES THE EDGE OF THE REDDING METRO, YET THE STATION IS AUDIBLE 30-50 MILES SOUTH OF REDDING AND THE 60DBU. IT HELPS WHEN THEY'RE ON A VALLEY FLOOR AND YOUR TOWER IS AT 5000'. A MOVE TO THE SOUTH AT DOUBLE THE POWER WOULD RESOLVE THE REDDING METRO ISSUE. AND PLEASE DON'T TELL MY LISTENERS IN REDDING THAT REQUST MUSIC EVERY WEEK THAT THE 60 STOPS THERE..

ALSO MENTIONED IN THIS STRING, DON'T BELIEVE I SAID THAT HAVING A SKI PARK BROUGHT THIS AREA UP TO A TOP 100 STATUS, BUT WHAT IT DOES DO IS KEEP THE WINTER ECONOMY MOVING AS MAY NOT BE THE CASE IN MANY NON-METRO MARKETS.

================================================================================

Anyway, that's my two cents worth..
keep that dream alive and do it. I did.


Dennis Michael Crepps
KZRO/GM/Owner