1. Cash Flow Pricing for Profitable High Yield Selling

6. MondayTuesdayWednesdayThursdayFriday Tom Mary Bill Bob Joan Sally Finite Resource

7. Infinite Resources

8. Sales Reps Time Most Valuable Finite Resource Increasing Yield though – Improved selling process – High Yield Selling Higher Frequency Higher Average Ticket Strategic Bundling

9. Event Total amount of revenue a client books during a meeting with the sales rep

11. Sales Reps TimeHigh Yield Mindset

12. Proposed New Rates 1/8th 1/4 1/2Full 1x $ 180.00 $ 315.00 $ 540.00 $ 900.00 3x $ 144.00 $ 252.00 $ 432.00 $ 720.00 5x $ 126.00 $ 220.50 $ 378.00 $ 630.00 8x $ 108.00 $ 189.00 $ 324.00 $ 540.00 13x $ 90.00 $ 157.50 $ 270.00 $ 450.00

15. Why Quantitative? Relatively high fixed base costs – News gathering – Distribution – Print Relatively tiny incremental costs Extremely competitive market

18. Must be High Volume Marketplaces are king – No place for skinny products Fully loading high base fixed costs onto low volume isn’t an option High retention comes from advertiser ROI The old ‘barriers to entry’ we enjoyed in print are gone, much more market driven

21. High Prices = Low Volume

22. Low Volume = High Prices

23. Equals… Disinterested Consumers Poor Advertiser ROI High Advertiser Churn Too much sales time devoted to looking for new advertisers

29. Considerations Base delivery cost Incremental delivery cost Production capacity Yield on the reps time – Same ad; Sub, TMC and digital Optimum Volume

31. Incremental Postage Above 3.3 oz. $2.36 $4.82 Base Postage per tenth oz.

32. Profit Fixed and Variable Postal Costs

33. Profit Fixed and Variable Postal Costs Risk

34. Profit Fixed and Variable Postal Costs

35. Profit Fixed and Variable Postal Costs

36. Profit Fixed and Variable Postal Costs

37. Incremental Postage Above 3.3 oz. $2.36 $4.82 Base Postage per tenth oz. Average Postage $3.98

38. Incremental Postage Above 3.3 oz. $2.36 $4.82 Base Postage per tenth oz. Average Postage $3.98

39. Average or fully loaded delivery costs are meaningless and dangerous

40. For Example Carrier Delivery $100/M, average 4 preprints “Delivery Cost per preprint is $25” What happens if you lose one? “$33” Will the last guy left pay $100? Then don’t do this

41. The bigger your package, the lower your effective cost of distribution.

42. TMC Expenses Bringing YOUR Expenses into the Conversation

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