Negotiating is an art. It's knowing what to ask for, when to negotiate and what to settle on. The better the rate, the more frequency you can get for your ads. Also, the per spot or per ad rates you pay will set a precedent. Hammer out the best deal in the beginning; it will pay huge dividends in future negotiations. In addition, recognize that while obtaining good rates is your number one priority, don't overlook other important elements of the buy such as narrowed broadcast times, priority placement for your print ads, direct mail pieces at the top of the stack, free spot color, no-charge bonus spots, etc.

It looks like a bargain. It smells like a bargain. It feels like a bargain. It still might not be a bargain!

For example, a broadcast outlet might present a spot "package," with some placement in the drive-times, and other spots falling late evening and overnight. While this will lower your average cost per spot, it doesn't mean you're paying less for the desirable time periods. Back out the "trash" and divide the package cost by the true number of valuable spots you're receiving. You might be unpleasantly surprised by their actual cost!

Usually, the best time to negotiate a buy is in the first quarter. This is when media outlets are trying to "jump start" the new year and "hungry;" they want to get some business on the books. Since most retailers have spent their budgets during the Christmas holiday period, there are more avails in the broadcast media. You might also be able to pick up some special deals from the print media as well.

Although first quarter incentives might be attractive, don't let the deal influence your decision. The outlet chosen still has to be right for your target. Don't be persuaded by "free trips" or other incentive packages thrown in to get your business.

Another way to achieve good rates is by placing annual contracts. You can still flight your advertising, for example 26 weeks out of 52, but your account is viewed as long-term. You are making a commitment to the outlet, and they should discount their rates accordingly. With print advertising, a bulk rate is considerably less than the "open rate" charged for each ad. An annual commitment will save you dollars, yielding you more ads and increasing your exposure.

Don't be afraid to make annual commitments. With broadcast media, you can cancel your contract with 30 days notice. If you cancel print contracts, however, they will adjust your rate and change the "column inches" cost of each ad used prior to the cancellation. You will owe the difference. A word of caution - don't enter in to any long-term agreement just to get better rates if you know you won't honor it. The advertising community is close-knit. Word will get around and you'll have a difficult time in future negotiations.

After you've hammered out your best deal, ask for more. Remotes, trip giveaways paid for by the outlets with in-store registration as an incentive to come by, billboards, sponsorships, gift certificates given away on-the-air for additional name mentions. All will increase the worth and impact of your advertising dollars.

Your payment history is an important part of the negotiating process. You will be asked to supply a credit application, and one area the media will look at is how quickly you pay your bills. Since there isn't anything that can be repossessed, a good credit history is paramount. Also, if you can pay your advertising invoices within 30 days, your business will be highly regarded. This will not only aid in future negotiations, but in the service you get from your account representative, who is paid their commission based on collections.