What Terms and Conditions Support Yield Management?
Everyone is familiar with terms and conditions, and you can use them openly if you back them up with integrity.
One of the early lessons in my sales career was the value of terms and conditions. Fortunately, we are all familiar with terms and conditions, whether you check the expiration date on a coupon, a price tied to a demographic (the senior discount at the movies), retail refunds, or how you qualify for credit. They are also a guidepost in media sales negotiations, a place for a customer to win and be unique, and a structure for you to stay credible and focus on the client's needs.
What Terms and Conditions Work Best?
Now is the time to meet with your sales team and have this conversation. You must consider a clear list of terms and conditions you want in your sales toolbox.
What terms and conditions are you already using with your customers?
Does the list need review to keep it fresh with current market circumstances?
Where are the pain points that should be revised for your customers?
Roleplay with your team on how the new terms fit into the sales process and benefit both parties. Terms and conditions are not a one-way street; they should help all sides in selling.
What Triggers Terms and Conditions That Apply in Media Sales?
Here is a suggested list of terms to use with your sales team and customers. If some on this list are not already in practice, then think about how they can be helpful.
Expiration dates on proposals vary by client category.
Length of contract commitment and order volume is tied to pricing.
Flexibility in ad placement and schedules or limits on how much can be purchased.
Lead times on orders and pricing benefits for placing in advance.
Change provisions, including cancellation clauses and order modifications.
Number of creative updates during campaigns and amount of creative support.
Investment levels for bundled product assets like play-by-play, merchandise, and promotions.
A hiatus month in an annual agreement for critical business changes with a client.
It is essential that any terms and conditions be beneficial and convenient for your customers and not used as sticks or fences to seem punitive. The approach must be positive in how they can take advantage. You might want to bundle specific terms and conditions that consider your better customers.
Think of no annual fee on a credit card as an example of a positive marketing point in finance. In the negotiations, make it the customer's choice what is essential; this supports why they are paying a specific price or giving you options on deliverables.
There is one rule when looking at your list of terms and conditions if they are not enforced, leave them off the list. Terms and conditions such as window dressing in sales help no one, not the salesperson or the customer.
Do not clutter up the conversation, hide things in the fine print or show weakness in how you conduct business. Everyone is familiar with terms and conditions, so use them openly and back up why they support integrity.
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About Alec Drake:
As President of Drake Media Group, a content creation and sales consulting company, Alec is on a mission to share his unique perspective on best practices to enhance sales performance and drive revenue. The company offers a range of consulting expertise, including sales operations, team and individual coaching, yield and revenue management strategies, event sponsorship formats, and sales marketing.
Drake Media Group, LLC retains exclusive rights to the original content in all articles written by Alec Drake, contained in any podcast appearances, or articles published on third-party platforms.