“We are happy.”
We hear this often, when contacting performing arts
organizations about their program book needs. “We are happy with our current
arrangement.” Here is the thing that tends to make us cringe about that …It’s
not a matter of being happy with a current arrangement. It’s a matter of, “Is the current arrangement cost effective?”
If one can answer that question with accuracy, then and only then, can one say
that they are happy with their current arrangement.
“Happy” versus “Dollars and Sense”
Keep emotion out of the business decision. Make no mistake
about it, program book publishing is a business with a very defined business
model. Joe Sales rep might be a wonderful person and he may sell many ads,
however one can’t simply look at the number of ads sold or the dollars sold.
Until one looks at the complete process and all costs involved, a decision to
keep the current process in-house or to outsource it, should not be made.
Costs (It’s the big elephant in the room)
Let’s make a “simple” list:
- Commissions or Salary for salesperson.
- Time & wage allocated towards the layout / design of the program book.
- Time & wage allocated towards layout / design of customer ads.
- Time & wage allocated towards chasing the customers artwork / ad copy
- Pre-press and Print cost
- Fixed cost allocation
- Time & wage of collections of account receivables from the advertiser.
- Balancing the inventory of pages allocated for ads and content to make the most cost efficient pagination.
Now for the Revenue list:
1. Ad sales
The point of this exercise is to understand that there is a
considerable amount of balance and control on the Costs side. If an
organization does not have an excellent handle on the costs, ad sales mean
absolutely NOTHING.
Before one is happy, please take the time (and it does
take time) to run through this exercise. There may be eye-opening surprises,
but you will know, if you are "truly Happy."
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