Pricing VS. Forecasting
Why would you price differently than your forecast submission?
In most markets, TV stations are required to report monthly forecasts to ownership. Some might assume that pricing should be set to match the submitted forecast, but this is not always the best idea. ShareBuilders can help you price strategically to produce a rate card that tackles challenges and opportunities with your own inventory and the market’s demand.
In high-demand market scenarios, your station may run very tight in all inventory areas. It certainly makes sense to raise pricing to handle the higher demand you are experiencing and get the most out of each program. There can come a point when you might not be able to hold on to every dollar because there is simply no place to put it. In this case, it makes sense to price HIGH to protect inventory but forecast to a lower, more realistic number that you can hold after the dust settles.
Conversely, in low-demand months it can be a challenge to move inventory and your station may run open. Every station in the market may be diving on price to grab as much share as possible. Creating demand with creative, aggressive pricing can sometimes help fill open areas. Once those areas get tighter we can ease pricing up closer to our submitted forecast. It can be a tightrope walk but with proactive planning and constant reviews, this strategy can be successful.
The ShareBuilder software allows stations to keep a Pricing line (Demand) and a separate Forecast line. This helps track strategic pricing and reporting to corporate entities. In addition, your weekly call with a dedicated consultant allows you to adjust that pricing quickly, responding to changes in your inventory or market conditions.