http://www.rbr.com/ ©2007 Spoonlabs d.o.o. Vivvo CMS 4.1 2012-02-11T16:08:05-06:00 http://www.rbr.com/radio/16222.html 2009-08-05T14:42:00-05:00 2009-08-05T14:42:00-05:00 Jack Messmer It’s primarily lower rates, not fewer units sold, that accounts for the decline in radio revenues, says Cumulus Media CEO Lew Dickey. His company reported that Q2 revenues were down 21.1%, although http://www.rbr.com/radio/16222.html 2009-08-06T08:16:31-05:00 2009-08-06T08:16:31-05:00 Rick Charles There are but 3 ways to increase radio station revenue:1. get more accounts on the air.2. get existing accounts to spend more.3. raise rates.The vast majority of radio sales folks are in favor of ways 1&2, but hedge a bit on number 3.Mr. Dickey and others have entered the slippery slope of letting customers determine the price of his product, and frankly, recovery from that position will be a long time coming.One negative effect of station consolidation has been the tendency to sell radio as a commodity instead of selling ideas, individually, to each account.Sales reps walk in with their "inventory" available on their "catalog" of stations and the buyer makes his selection. This has been occuring since the late 90's, about the time that law permitted the clusters of stations be commonly owned. By no coincidence, it was at the same time that radio's growth stopped, leveled out through the early 2000's, and began it's nose dive early last year.Commodities are bought and sold like bags of flour, and are regarded about the same way by buyers.Sales reps who bring ideas, service, rate integrity and professionalism to their weekly calls are surviving these times and stand out nicely apart from the commodity peddlers.