LETTERS

Folio: The Magazine for Magazine Management, Nov, 2001

THE UNKINDEST CUT

I read, with great interest, yet another attempt to validate and justify rate card cutting in your September 15 edition (see "Rate Card Madness," Page 24). Those interviewed on the subject were quick to dismiss any hint at justification for strict rate card adherence.

I've been publishing my title for 22 years and have yet to discount beyond earned rate, even once. I have always maintained that you should price your product/service according to what it is worth. If your rate card says $5,000 per page, it should be worth exactly that. If, on the other hand, it is worth only $2,500 per page, then have the integrity to charge that and no more--on the damn rate card.

There will always be someone who will undercut on price. There will always be weak publications and sales reps scrambling to snatch crumbs from the tables of true businesspeople. Your readers should look carefully as to why any publication would be willing to reduce their rates for their ad business. If their cover positions are available, you should ask why. If they are offering you unbelievable added value, ask why. I contend that the only reason they do so is because they have to. Their publications are not worth the published rates.

In closing I would like to relate the following recent occurrence:

A very large company recently entered our industry. The marketing manager placed a few ads to test the market. Once his research was complete, he turned the effort over to his big-name ad agency. Upon contact from that agency, we supplied a media kit, rate card and research information, as requested. A few weeks later the agency called, saying they were meeting with their client the next day and needed "their" rate.

After apologizing for evidently forgetting to include a rate card with the package, our rep was informed that the agency did, indeed, receive the card, but needed "their" rate. When our rep explained our policy on discounting, the agency person hung up on her.

Two days later the agency called, apologized for being "disconnected," and placed a program for next year.

Come on people. Have the balls to stand up for your product. Believe in what you do. Charge a fair price and be proud that you have honesty and integrity in your corner. If you cut your rate card, you show the true worth of yourself and your product.

Sincerely,

RICK CAMPBELL

PUBLISHER

MOTORCYCLE INDUSTRY MAGAZINE