List leaders discuss today's Challenging market (2,023 words)
As always, the broker who negotiates the best deal always provides sound rationale as to why the discount is needed. Brokers who generally supply computer verification, or other documentation supporting the request, quickly get a favorable answer.
DiSciullo: There is definitely an increase in the availability of incentives offered by list owners and managers to aggressively compete for a greater share of a decreasing market. However, good lists that are properly used have continued to produce results for mailers. Pricing incentives are primarily focused on volume commitments or to attract new mailers to test. Negotiation, now a "given" in the every day transaction of lists, largely depends on the list owner's perception of the list product and its popularity in the marketplace.
Moriarty: Over the summer, some list companies offered free tests, or better broker discounts in hopes of helping mailers meet their margins in tough economic times. It seems of late that most list owners/managers are willing to negotiate on the transmission fee regarding e-mail list orders
Papalia: A fair price is when both seller and buyer agree. In our current economy we find both sides more negotiable. Discounts are becoming more common but we try to maintain a consistent rate card price at the onset.
TM: What impact has the Internet had on list research/sales?
DiSciullo: Internet communication has provided a new dimension to the list business which has greatly enhanced, but not essentially changed, the basics of the business. This new channel has been both an improvement in the way lists are transacted and delivered as well as a complementary medium to be used with direct mail lists. The businesses that have become successfully involved with the Internet realize the importance of using all forms of direct response media to achieve an integrated approach.
Montana: The Internet has helped expand sales into the e-commerce arena. Many dot-com companies have created catalogs and direct mail pieces to drive traffic to their Web site, using traditional consumer lists.