How should you handle pricing if your market expects huge political in the upcoming months? You risk scaring your core customers away if you price in full upfront. Once core clients start to avoid spending, pulling them back in can be very difficult if the political dollars don’t materialize. If you don’t price for any political and it comes in strong, you risk alienating your core by bumping them out. Researching the races expected in your market and past spending for similar races can be helpful.

Different types of demand require different pricing strategies. Inelastic demand refers to a situation where a change in price has a relatively small impact on the quantity of a product or service demanded by buyers. In other words, buyers aren’t price sensitive.

Supply and demand is a fundamental concept in economics, which describes the relationship between the availability of a product or service and its demand, and is a core concept and philosophy in what we do at ShareBuilders.

As we shared in last month’s blog, when prices fall, demand generally increases. When a station uses the strategy of “pricing for share” it involves lowering the price in an effort to make the station’s inventory more attractive to buyers, thus encouraging them to buy more. Having one advertiser “buy more inventory” might be good in a specific instance, but if this strategy is utilized universally with every advertiser, it can lead to problems. Here are a few points to consider: