Economy changes traditional pricing plan
A business' survival is entirely dependent on its bottom line. Other factors matter in its success -- product quality, customer service, competition -- but in the final accounting, longevity is based on the sometimes delicate balance between profit and loss.
Most newspapers for much of the past two centuries have managed to maintain that balance by doing something virtually unheard of in other industries -- giving their product away at no cost.
Whoa, wait a minute. Right now you are pulling out your bank statement and reaching for the telephone to insist (loudly) that you, indeed, have been paying for this newspaper for years. Not exactly.
As has been said in this column more than once before, what you have paid for is delivery of our product. Advertising dollars pay for the actual production of the newspaper.
That's the reason newspapers of drastically different sizes generally cost about the same -- because delivery costs are pretty standard.
Higher advertising rates at larger papers cover the higher content costs of producing the bigger papers. Subscription rate increases typically have covered only rising delivery costs.
Now, The Enterprise is among newspapers in the country making a change in that long-established practice. We are, beginning in some areas on Monday, asking readers to pay not only for delivery, but for our product -- our well-researched, well-reported, credible news, features and photos.
The price increase represents about a dime a day to subscribers, from $15 per month to $18 per month. Those purchasing products from our newspaper racks or stores will now pay 75 cents for a daily paper and $1.75 for the Sunday paper.
On July 1, home delivery rates will rise. Our lowest rate still will be available through our EZPay automatic debit or recurring credit card billing. The changes will include those subscribers who have already paid in advance, meaning their pre-paid subscription period will be reduced by the number of days it takes to cover the difference.
Advertising revenues have declined -- not because this 128-year-old newspaper is in any peril, but because of an uncertain economy. The paper has become smaller because of that, but there's a limit to how much news space can be cut in order to still produce a viable product. We've drawn a line at cutting that space any more, so shifting just a tiny portion of the cost of content to readers is a necessity.
Think about this: The U. S. Postal service charges 44 cents to deliver a letter of not more than an ounce within a few days, six days each week. Other delivery services such as Federal Express, Airborne or UPS, charge significantly more for overnight or two-day delivery.
The Enterprise has charged about 50 cents per day for delivery of a product within six hours of creation, seven days a week, 365 days a year. Even our increased cost compares favorably with the delivery costs of other services.
This is not because of declining circulation. Reporters get the same paycheck whether they are writing for 100,000 readers or 150,000 readers. Being printed in Houston has nothing to do with it. This is about business, profit and loss and good business decisions that will keep The Enterprise moving forward in today's economy.
Some newspapers across the country have ceased home delivery. Some only print a few days each week. A few even no longer produce print editions. We find none of those alternatives acceptable, so this is our solution.
In the end, what readers need to recognize is they are not being charged more for less. They are, instead, being charged for something they have long gotten virtually for free -- like television used to be.
It's not only a sign of the changing times, it is a well-considered and justifiable move enabling us to continue producing a newspaper of value to readers and advertisers.
Most newspapers for much of the past two centuries have managed to maintain that balance by doing something virtually unheard of in other industries -- giving their product away at no cost.
Whoa, wait a minute. Right now you are pulling out your bank statement and reaching for the telephone to insist (loudly) that you, indeed, have been paying for this newspaper for years. Not exactly.
As has been said in this column more than once before, what you have paid for is delivery of our product. Advertising dollars pay for the actual production of the newspaper.
That's the reason newspapers of drastically different sizes generally cost about the same -- because delivery costs are pretty standard.
Higher advertising rates at larger papers cover the higher content costs of producing the bigger papers. Subscription rate increases typically have covered only rising delivery costs.
Now, The Enterprise is among newspapers in the country making a change in that long-established practice. We are, beginning in some areas on Monday, asking readers to pay not only for delivery, but for our product -- our well-researched, well-reported, credible news, features and photos.
The price increase represents about a dime a day to subscribers, from $15 per month to $18 per month. Those purchasing products from our newspaper racks or stores will now pay 75 cents for a daily paper and $1.75 for the Sunday paper.
On July 1, home delivery rates will rise. Our lowest rate still will be available through our EZPay automatic debit or recurring credit card billing. The changes will include those subscribers who have already paid in advance, meaning their pre-paid subscription period will be reduced by the number of days it takes to cover the difference.
Advertising revenues have declined -- not because this 128-year-old newspaper is in any peril, but because of an uncertain economy. The paper has become smaller because of that, but there's a limit to how much news space can be cut in order to still produce a viable product. We've drawn a line at cutting that space any more, so shifting just a tiny portion of the cost of content to readers is a necessity.
Think about this: The U. S. Postal service charges 44 cents to deliver a letter of not more than an ounce within a few days, six days each week. Other delivery services such as Federal Express, Airborne or UPS, charge significantly more for overnight or two-day delivery.
The Enterprise has charged about 50 cents per day for delivery of a product within six hours of creation, seven days a week, 365 days a year. Even our increased cost compares favorably with the delivery costs of other services.
This is not because of declining circulation. Reporters get the same paycheck whether they are writing for 100,000 readers or 150,000 readers. Being printed in Houston has nothing to do with it. This is about business, profit and loss and good business decisions that will keep The Enterprise moving forward in today's economy.
Some newspapers across the country have ceased home delivery. Some only print a few days each week. A few even no longer produce print editions. We find none of those alternatives acceptable, so this is our solution.
In the end, what readers need to recognize is they are not being charged more for less. They are, instead, being charged for something they have long gotten virtually for free -- like television used to be.
It's not only a sign of the changing times, it is a well-considered and justifiable move enabling us to continue producing a newspaper of value to readers and advertisers.
posted by Sheila Friedeck at 3:59 PM
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