Subject: Re: Ad rates for news oriented web pages From: PJacobson@aol.com Date: Fri, 5 Jan 1996 07:41:33 -0500

In a message dated 96-01-02 11:12:45 EST, you write:
 Dr. Glen T. Cameron says:
>I would like to offer a revision based on my experience in business.  Price
>your advertising at whatever rate the market will bear, not cost plus
>profit.  You may leave a lot of money on the proverbial table by basing
rates on cost and margin.<<<

in regard to a portion of my previous post: 

>>PJacobson@aol.com wrote regarding pricing of advertising:
> It is basically, all costs
>plus a profit, and their books will list some costs you may not have thought
>of.

Doc, I agree completely. By setting the rates as high as the market will
bear, you can maximize your profit. Profit is not a dirty word, it is the
reason for being in business. Once you have determined your true costs, set
your prices to maximize profit by charging as much as the market will bear.
   You should do  some test marketing to get preliminary data, then use that
information along with some of the formulas in those books I suggested you
read, to decide how high you can go for the maximum profit. 
   The big choice seems to be between which market you want to hit: Mass
market with a lot of ads at a relatively low cost, or a selective market,
represented by a few ads at high cost. High school algebra will settle the
issue once you have your test data.

Paul Jacobson

------------------------------

End of online-news-digest V1 #455
*********************************


From owner-online-news-digest@marketplace.com Sat Jan  6 06:19:11 1996
Received: from marketplace.com (majordom@marketplace.com [199.45.128.10]) by cnj.digex.net (8.6.12/8.6.12) with ESMTP id GAA12911 ; for ; Sat, 6 Jan 1996 06:19:04 -0500