We have been very fortunate to not have many advertisers stiff us or stop in the middle of a package over the past 50 years, however times are changing and we're trying to be proactive.
Do any of you have a cancellation fee put in place for an advertiser that may be on a package and they cancel early? Perhaps a certain % that is due on the unused portion of the committed package? If so, what % do you charge (knowing that alot of times when a business stops in the middle of a committed schedule it's because they are closing.)
Any verbiage or ideas you could offer would be much appreciated.
Thanks!
Stacey
Hi Stacey, our cancellation fee is $500, we put this in the contract. If you are using one-sheeter contracts, i put "Non-Cancellable, subject to terms and conditions"
we use tiered packages "3-month" "6-month" and "12-month" and then build the discount into the longer commitments with an incentive to commit long term. If a 12 month client opts out after 6 months, that client pays the 6 month rate.
hope that helps. john at southseasbroadcasting dot com
Thanks John!
John,
What sort of language do you put into your contract other than "Non-Cancellable, subject to terms and conditions" to inform the advertiser he will be required to pay the higher rate of the shorter package if he cancels?
Interesting. I know print does it and calls it 'short rate' but I've never heard of a radio station doing it...sounds like a good idea tho. Sponsorships can't be cancelled but everything else can be with 2-weeks written notice.
