Just like the pumpkin spice lattes, contract renewal time is here. Begin the conversation with your client no later than 90 days before the end of the contract, allowing time for the process and, if need be, time to get the unit(s) back in inventory.

Clients make up their mind about your rate increase based on how thoroughly/confidently you make the request. An advertiser can tell if you believe in your products, your pricing and your rate increase. Price with pride! Sell yourself as the value-added in continuing the contract. Have your client understand the rate increase isn’t coming from you, it’s being dictated by market demand.

Always deal in assumptive terms, don’t ask “if” they’re going to renew. Proceed as though they are renewing and you’re just working out the details.

Use this conversation to upgrade (upsell) your client by showing advantages/options/preferred pricing for buying a bigger program.

Give the advertiser a comprehensive recap of the current contract setting the stage for valuing your product. Show the extraordinary service elements you’ve delivered over the course of the contract including a complete override report showing the amount of over-delivery they received.

You must always get a rate increase, even a nominal one. It is impossible to recoup lost rate increases later. 00H companies and clients always discuss rate increases as a percent.  Often it is more palatable for a client to accept a $90 dollar increase on a $1000 unit than a 9% percent increase. Create urgency: explain there are (XX number) advertisers looking at their unit(s).

Don’t use national info about the advantages of OOH to get an increase.  You must have tangible “local” business reasons for the increase.  If your manager/company doesn’t provide this information, you need to search for it. (Reach out to me at KevinJGephart@gmail.com and I can help).

The most compelling business reason for an increase: your company is doing a better job of getting results for local advertisers thus there is much greater demand on inventory.

Illustrate other important facts like:

• your average overall cost of branch operations has increased X%
• your average lease cost has increased X%
• you’re reaching more prospects because your market population has increased X%
• your plant average weekly impressions per unit have increased X%
• cost of major improvements and upgrades to boards, lighting, production processes, etc.

An incumbent advertiser may be getting their unit(s) too far below market value.  Don’t be afraid to sell those units to a new advertiser at a higher rate rather than continuing to grandfather in a low rate.

Remember next year’s renewal starts with the work you do the day after this renewal is signed.

Here’s to Selling More OOH Faster in the New Year!!

For more great sales advice like this purchase The Ultimate OOH Sales Guide.  You can purchase your softbound copy of The Ultimate OOH Sales Guide for $69.96 plus $5 for emailing info@billboardinsider.com.  To learn more visit The Ultimate OOH Sales Guide.

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