Managing Price
---> Overview
---> Subscription Pricing
---> Advertising Pricing


Over the past 5 years return on investment of K Group’s advertising pricing strategies has averaged 30 times the consulting cost in year one!

Here are some examples:

Rich DobsonSenior Vice President, Milwaukee Journal Sentinel
Prior to implementing the K Group Pricing strategy, our experience was that 30% to 35% of our retail advertisers increased their commitment year over year. With our new strategy we were able to increase commitment for about 75% of our retail advertisers. We achieved our budgeted revenue increase without a price increase by changing our price structure.

K Group refined our retail rate card again in Nov 2002 for January 2003 implementation We asked K Group to review all of our classified cards in 2003 for 2004 implementation. In 2005 K Group revised our Automotive and Retail rates for 2006 implementation

Kimberly ParkerVice President Advertising, Virginian Pilot
W implemented K Group’s recommended pricing strategy in October of 2001. Based on an analysis of our internal data, we reaped $700,000 in incremental revenue on a base of $12 million in the first six months as a result of the pricing action.

Chris PopperAd Manager, Wilmington Star News
We implemented K Group’s pricing strategy for our local retail and automotive categories in January 2003. Through the first five months of 2003 we are up 9% over budget and continuing to show strong performance.

Charley Ritscher
Vice President Advertising, Richmond Times Dispatch
In Richmond we had worked internally to change our very complicated and ineffective rate card for a number of months without success. Our local retail category was stagnant due in large part to our rate card - - only 2 in 10 advertisers increased their commitment with us each year. Most stayed flat. Advertiser counts were down and revenues had stagnated.

Within four months of implementing the K Group rate card recommendations and training, we found that 55% of our advertisers had increased their commitment. At the six month milestone we found that our local advertisers were up 18.3% (versus a benchmark of 2.4%, advertiser count had increased by 169, local ad rates had increased by almost 4%. The paper looks better; readers are happier and advertising remains strong.

After 18 months, we found that our small advertisers had achieved a shift in momentum with a monetized value of to RTD of $1.6 million (incremental revenue).

Mark GoldRetail Manager, Santa Rosa Press Democrat
We implemented K Group’s new retail rate card in August 2002. Through first quarter 2003 we had increased commitments for our local retailers in 8 of 10 cases versus a benchmark in prior years of 4 of 10 advertisers increasing their commitment. The Impact Ad program was particularly successful in moving revenue and increasing ad size.

Monica Witt - -Minneapolis Star Tribune, Sales Representative
It went really well! I created a monthly calendar with all the dates, including the BB (business builder) program in the spring- like (K Group) suggested. The client was extremely happy with the BB program and said there are probably (use it) 6-8 weeks during the year. He also liked the other programs and he will touch base with an annual plan pretty soon. . . . He said the $160K investment level made sense. It was extremely helpful going over this early with (K Group).

Bonnie Laux - - Retail Vice President (Minneapolis Star Tribune)
We are doing well really with our small to mid-size accounts. The structure has given many customers the incentive they needed to sign contracts with us for the first time!

I am hearing good things (from our customers) about the (new K Group Rate) structure. Enterprise (department) reports that they are having success in closing new business and I have heard of several within Regional Retail as well. Thanks for the great work, I know that it will help us achieve our revenue objectives this year and provide more value for our customers too.

Copyright © 2005 K Group, Inc. All Rights Reserved. Privacy Policy   Web design by Deepblue  site by Deepblue