Wha’s up with this??

[Powerpig56]

"...Maybe he does not fully understand the concept.. . . "

Nevertheless, I have to ask, why not just run an add that says drop by and receive a 40% discount?

Because that would require out of pocket money for the advertiser. The whole gist of this thing is that it doesn't cost the business any money up front. There are also a certain number of certs that won't be redeemed, so the actual costs to the business is much lower than face value of the certs. I know I'm guilty of buying restaurant.com certs and never using them before expiration.

Maybe I can put this in better perspective: As most of you know, Denny's gave away free Grand Slam Breakfast's earlier this week. They did it nationwide for eight hours.

When the CEO of Denny's was interviewed, he stated that even giving away all those breakfasts, they would still make a profit once the drink purchases were factored in.

 

[Fran]

The whole gist of this thing is that it doesn't cost the business any money up front.

Since most advertisers would rather trade-out than spend cash, this concept seems workable. Even with Val-Pak, or newspaper, there is no getting around upfront money.

The timing for something like this could not be better. What they need now is a good ad agency to help them get the word out. This could turn out to be interesting.

 

[nolaradiobuff]

The concept can be effective if it is promoted correctly. Unfortunately, in many large markets (including New Orleans), Clear Channel has whored the concept and the advertiser receives little in the way of real advertising. Clear Channel uses little in the way of inventory, simply mentions that the discount certificates will be offered for sale at 9AM on Friday. Here, it's a bad deal.

The advertiser does get a customer (that he may have already had at full price) and the opportunity to upsell. It depends how effective he is and what value the consumer places on his certificate.

You can't use a $25 certificate if you just want to buy lunch for you and a friend at a deli. There's no cash back if you don't use all $25. For restaurants, the certificate doesn't include alcohol or taxes. Does the consumer save money? Maybe. Perhaps he goes to a restaurant that he normally wouldn't have tried and it's a win-win for him and the restaurant (if he has a good experience and feels the value).

One other point: not everyone "wants" to trade and, even if you trade, there are still costs and tax consequences for the advertiser and the station.

Bottom line, it's an opportunity to drive restaurant business and some retail service businesses (think hair salons, spas, massages, etc) and other higher margin businesses. Restaurants and service businesses have to fill seats. Unsold seats are no revenue. Real retail where inventory costs are higher than restaurants and the inventory needs to be replenished, are difficult for this concept to work.

 

[bobrall]

It seems Fran and some others see a need to "hook" their clients with something other than radio advertising. I understand poorly programmed stations or those with poor frequencies and/or coverage have to do something to subsidise their shortcomings; but, this lack of faith in the medium has led some
good stations to become just as prostitutional as Clear Channel in their own "live and local" little ways.

 

[jboyd]

You must surely be an "oldGM" Thanks JBI

 

[Powerpig56]

With all due respect, they aren't"hooking" anyone. They are providing advertising, or a service if you will. Not only do they have to sell the business, they have to sell to the listener. One of the most successful shows I was ever involved in was a "Swap and Shop" show on a very large Country AM station. If this type of business keeps a little AM station on the air while providing a service, I'm all for it. You've got to be creative with these type of stations in today's economy.

 

[Fran]

When I first asked the question, I never imagined that JBoyd would jump in and declare this was some kind of Ponzi scheme. Good grief!!

As far as “hooking” listeners and advertisers. . . makes you wonder what are the old timers are putting in their kool aid.

 

[knowsthings123]

I think what "old schoolers" are missing is this is a new way to monetize a radio station. Not all stations can have high ratings and sell to advertising agencies - and those with numbers and clout are seeing a decline in ad revenue. So what is a tertiary station to do? Retail Radio! Please don't get this confused with what Clear Channel and others are doing on their websites. This is better than that. It was developed 26 years agon on WRMN in Elgin, IL (a suburb of Chicago). And they still make their living, making incredible revenue, using this revenue model. They've perfected it. Most certificates are good for anything in the store/restaurant. Sales tax and tips are not included, of course. Soon, WJQS will be doing "Road Shows," appearances around town selling more goods and services. Hey! It's not for everyone. If you don't like it, don't listen. But people need to get bargains and businesses need to promote their stuff and see new faces coming in the door. It's working in Elgin, IL; Aurora/Naperville, IL; Las Vegas; and now in Denver, Colorado Springs, Dallas and soon in Memphis TN and Ocal FL. If I owned a radio station again - there is NO way I would ever pound the pavement looking for cash paying advertisers over and over again (you know what they say about that!) - why? When there is this incredible system????

 

[bobrall]

When I first asked the question, I never imagined that JBoyd would jump in and declare this was some kind of Ponzi scheme. Good grief!!

As far as “hooking” listeners and advertisers. . . makes you wonder what are the old timers are putting in their kool aid.

Metamucil!

 

[bobrall]

I think what "old schoolers" are missing is this is a new way to monetize a radio station. Not all stations can have high ratings and sell to advertising agencies - and those with numbers and clout are seeing a decline in ad revenue. So what is a tertiary station to do? Retail Radio! Please don't get this confused with what Clear Channel and others are doing on their websites. This is better than that. It was developed 26 years agon on WRMN in Elgin, IL (a suburb of Chicago). And they still make their living, making incredible revenue, using this revenue model. They've perfected it. Most certificates are good for anything in the store/restaurant. Sales tax and tips are not included, of course. Soon, WJQS will be doing "Road Shows," appearances around town selling more goods and services. Hey! It's not for everyone. If you don't like it, don't listen. But people need to get bargains and businesses need to promote their stuff and see new faces coming in the door. It's working in Elgin, IL; Aurora/Naperville, IL; Las Vegas; and now in Denver, Colorado Springs, Dallas and soon in Memphis TN and Ocal FL. If I owned a radio station again - there is NO way I would ever pound the pavement looking for cash paying advertisers over and over again (you know what they say about that!) - why? When there is this incredible system????

Good or bad...it's not new. CCA (Community Club Awards) was one of the first NTR systems.

 

[airwaves1123]

Hey "oldies", I do apologize for calling Jboyd "ignorant". That was an unfair general overview. I am sure there are subjects he is void of ignorance. Maybe he can enlighten us. However, per this discussion and judging his own words, I stand by my adjective - he is ignorant - related to this subject. Thank-you for your input.

 

[tzbarber]

Hey airwaves- Is that your real name? If not,why not share with the rest of us- you seem classless,although I shouldn't make such a general statement. But it would be true,as in you being void of class in this instance. Perhaps you can enlighten us as to how you can show some class towards those like Mr. JBI who've given their lives to this business.

 

[Fran]

. . makes you wonder what they are putting in their kool aid. . . .
[size=10pt]Metamucil![/size]

Never heard of it . . . does it grow here in Mississippi?

 

[Powerpig56]

. . makes you wonder what they are putting in their kool aid. . . .
[size=10pt]Metamucil![/size]

Never heard of it . . . does it grow here in Mississippi?

I think it's ground up kudzu.

 

[MarcB]

The Home Shopper Show has been a staple on Clear Channel's WELI in New Haven, Connecticut for years. WELI has been owned by Clear Channel since before they huge company that once owned 1200+ stations. Granted in recent years WELI has cut the number of hours the show airs, it is still airing 10AM-12PM on Saturdays and 8AM-1PM on Sundays. Tune in and check it out http://www960weli.com/ For more info on the show check out: http://www.960weli.com/pages/jox/homeshopper.html

 

[radioboy]

JBI,

I got a bad taste in my mouth from one of these setups.

About 8 years ago I was working for a little AM in Tallahassee that decided to do a version of this
and called it "Marketplace." The station owner hired a fellow who sold all the advertising, handled
the coupons, and had a small office in the back of a Pac-Mail for customers to pay for their certificates.
He then paid the station a percentage of what was received.

When this gentleman left to move to another city, the station owner ignored our warnings, and hired a convicted felon to run the program. When things like marble countertops being installed in this fraudster's home began showing up for the station to pay for, the show's reputation was tarnished. There was not an advertiser in town that would touch it. The day after the countertop incident, Mr Faudster was fired on the spot but the owner hired another person who also was not honest and totally ruined the concept in this market for good.

Then the owner gave me the ops manager title in hopes I could clear things up. I did the best I could, and
all the spots/coupons/airtime was settled to everyone's satisfaction but that show had to go.

The concept can work, when done in an honest fashion.

Your station can head right to the edge of the cliff otherwise.

It took more than 2 years to clean that mess up.

 

[lfuss]

jboyd - no offense, but you are ignorant.

I've known J. Boyd for 32 years. I can assure you, he's not ignorant.

Stations do these coupon things to generate cash. It's not my kind of radio, but I understand why they do it.

Restaurant owners think if somebody comes in with a 2-for-1 coupon, they'll like the food and come back again and pay full price. It doesn't work that way. I just wait for another coupon (restaurant.com is a great source). A restaurant would be better off attracting more paying customers than to lure cutomers in with coupons and specials. It trains people to only come in when there's a special or a coupon offer. For example, some restaurants have kids-eat-free nights - that's the only time I go to those places.

(For the record, I own a restaurant too, so I kinda know what I'm talking about).

LF

 

[tzbarber]

For example, some restaurants have kids-eat-free nights - that's the only time I go to those places.

LF

[/quote]
Larry, always remember you as a youthful looking guy,but is it really work it to dress up as a twelve year old to get discounts?

 

[airwaves1123]

TZ - my name is Tom Tipton. I have owned radio and television stations in excess of 29 years. Thank-you for asking. I do not know Mr. Boyd. I was referring to his lack of understanding and negative perception of the station's revenue generating techniques. - not him or his reputation. Personally, I commend any station for trying something new and innovative; especially when its a long forgotten AM property. I see the station as offering consumers money saving opportunites to listeners at a time when we most need them. The arrogance and negatism of Boyd's comments certainly hit me wrong and I noted a few others. I salute stations trying new ways to make money while offering their advertisers and listeners great savings.

 

[tzbarber]

Hello Tom. I'm sure you didn't mean to come off as name-calling in your previous words to Mr. Boyd,and were just responding to what you took as an attack on the concept utilized by WJQS. I myself don't act in an emotional manner,rather keeping my opinions to myself.(Here's where you hear others that know me coughing and gagging.) I'm sure I should've let JBoyd speak for himself,anyway,but I think you misinterpreted his thoughts. Here's to all radio stations making a profit anyway they can.