Question

Topic: Branding

How To Price A Unique Branding Opportunity

Posted by Anonymous on 2/28/2007 at 10:30 PM ET 50 Points
Hi There,

For the first time, we are offering consumer product companies the opportunity to brand within our network. Our audience is 100,000 strong spread out across the country. The brand will have visibility and attention from the audience, once a week, every week for an entire year.

My dilemna is, since we are doing this for the first time, I am not sure how much I should charge a brand to have visibility in our network.

Are there any other comparables that I could use as a good indicator of what the right price should be?

Thanks!
D
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RESPONSES

  • Posted on 3/2/2007 at 4:58 PM Member
    Ultimately, you should price it at whatever your customer is willing to pay, but you also need to consider what your cost is and how much margin you need to make. That would be your starting point.

    If you had a way to measure, you could take more risk and position it for a percentage of sales - IE Fee X plus 5% of sales or No Fee and 15% of sales.

    Mbarber brings up a great point, since this is your first time and you don't have a benchmark, it might be worth it to be upfront with your customer - price it low and see how it goes - it may work or it may really upset all your customers - one thing for sure is they'll let you know very quickly.
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