Radio Sales Café

I am putting together a biz plan for obtaining a local station in a 100+ market and I am currently working on the sales projections (I have an annual projection of sales) but in need of estimations of the monthly projections (I know December is more than January) but am interested in feedback of estimations for each month (ie -- December is 20% on annual sales, January is 5%, etc)

 

Thanks for all your help

 

Jeff A

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Jeff,
Your question is very good and one that is usually answered with a huge "depends". If you have access to historical data on the station, it would be very helpful as history patterns tend to repeat themselves. Other factors to consider are your programming format, local economy, any plans for sales promotion that will drive revenue, experience of your staff, and the amount of local direct business compared to agency/national business. In smaller markets (100+), generally you have a greater percentage of your business as local direct which gives you greater control of your destiny. That's the good news but the challenge comes from creating sales opportunities that provide client value.
All of that aside, a good starting point would be to budget revenue by quarter and then break it down by month. A general thought would be Q1-15%, Q2 25%, Q3 30%, Q4 30%.
Hope that helps. Good luck with your venture!
Rick

Rick -- Thanks for the info. I assume that pricing also depends on the time of year as well (in addition to ratings in your market). Also some 4th quarters would be higher with election season? How much do you use volume pricing (more you buy, the cheaper it is?)

Jeff