The price of not much is going up
A reader writes:
We received a notice from the Oregonian that our subscription rate is being raised from $36 to $48 (I think it is for two months). Unbelievable. They are going to lose lots of subscribers over this one. Unfortunately for them, the Oregonian has no clue how to run a business. You don't raise prices when your volume is down, you lower them. They seem to have a public sector mentality about it all. They seem to think that they need 'X' in revenue and they have 'Y' subscribers so all they have to do is change their rate to 'Z' to cover it. It sure looks like a death spiral to me.
We've been getting the daily delivered free to our house for a little over a week now. So far, it just doesn't seem like a rewarding enough experience to pay for. And we've really lost the habit of reading news, especially local news, on paper. It feels awkward. Certainly, the kids will never do it.
Even with the Sunday New York Times, which we still pay to have brought to the house in hard copy, we don't find ourselves on the news pages much. Mostly we're into the magazine and the feature sections.
Anyway, if the O thinks that after our free trial we're going to sign up for another $24-a-month bill, they're wasting time and money. Unfortunately, nowadays the insatiable maw of Comcast leaves no twenties lying around in our information budget.
Comments (11)
Sure, they might want you to sign up, but their main motivation is more likely geared toward just having more subscribers. The only way to sell advertising is to promise the add will hit a certain amount of households. Sort of like the Tri-Met ridership numbers which can tend to be a little misleading, but exist to sell mass transit to the unwitting.
Posted by gibby | July 20, 2012 7:32 AM
How about $12 mo? They'll negotiate. After 6 months or so the price will creep up again, you cancel (or offer to) and then start over at $12.
Posted by Mr Tightwad | July 20, 2012 7:42 AM
I have never successfully negotiated with the Oregonian subscriptions people. I'd love to know Mr. Tightwad's trick.
I once offered to pay for an entire year upfront. They quoted me a higher price! They said the special low price was only for people on monthly autopay.
Posted by Garage Wine | July 20, 2012 8:05 AM
Try stopping subscription, then signing up for their version of weekender.... Friday, Saturday and Sunday papers, plus FoodDay or whatever it's called. I've had that the past few months for under $10 a month, only they've been delivering the paper every day.
Posted by nameless in SE | July 20, 2012 8:16 AM
Ditch cable; I did in favor of just Internet. Don't miss it much. If I have a show I want to watch, I buy it on Amazon. Much cheaper.
Of course, this only works as savings if you're not hooked on a lot of shows.
Posted by talea | July 20, 2012 8:32 AM
No sorry, raising prices, when business is "down" is an intelligent move. The psychology revolves around the notion that if we charged more, the "perceived value", to the consumer, will increase also. In many business models - including mine - raising the "cost of service" sees a direct increase in volume, and the business bottom line.
Posted by Mark | July 20, 2012 9:15 AM
Mark,
That may be true in some business models, but not many. The Oregonian has been continually raising their prices for the last several years and the paper continues to shrink and they continue to layoff more staff.
If raising prices stimulates volume, then all the Big 3 automakers would have had to do three years ago was charge more. It would have pulled them right out.... not.
Posted by Robert Collins | July 20, 2012 9:19 AM
Well I have personal 'issues' in relations with The O specifically, and the NYT somewhat. I know persons of it (them) and am antagonistic for reasons and motives aside from the actual product, content and page counts, etc. Without getting into the details, I don't pay subscription regardless of price changes; if it were free to me I'd still stay free of it.
However, the business aspects of the situation catches my interest. Similarly in other (non-media) businesses, (my interest), for the last 6 months or more.
Conventionally, for decades, businesses managed a good degree of continuity thru upturns and downturns of revenue streams, availing themselves of a line of credit at the bank for operating contingencies short term, in the range of, say, 6 to 36 months.
What has caught my interest in The Data this year is the spike of businesses being destroyed or failing, caused by lines of credit being cancelled, arbitrarily(?), summarily, and unilaterally by "the bank" and bankers.
My theory in conclusion, on which I am basing my facts, is that the Fed.Reserve is 'under orders' and giving orders (to subsidiary banks) to cancel lending, to damage the economy (cramp business to curtail hiring), to handicap Obams's re-election approval numbers. (Oddly this time, one side down (Obama) has NOT resulted in the other (Romney) side going up.)
So where or who is 'over' the Fed.Reserve passing orders 'down' to it? IMF? World Bank? The LIBOR crimes (insider rigging and private profiteering) shows another symptom (clue?) of systemic malignant development. (Discussed in many serious credible venues as 'the intrinsic or inexorable failure of pure capitalism.' Which is Marx & Engels's prediction; capitalism inevitably consumes itself, and collapses hollowed out, rotten in its core precept.) And that's the World Economy we're talking about (IMF, World Back, LIBOR, a planetary 'reserve currency' in 'petrodollars', and such) collapsing.
At the local level it is local banks cutting off local businesses (e.g., The O) without operating capital to cushion a dip or falloff in business, and poof! gone bust, out of business. So was it because of a bad (uninformative, insubstantial) newspaper product, unsaleable content? somebody stole the cash drawer, an inside job? Or did they get vaporized put out-of-business by the effect of a phone call from Geneva Switzerland ordering the Fed Chairman to pull credit and lending restrictions to a strangulation tightness?
My theory blames Geneva-ilk. Data show Rothschild is the richest family in the world. or tied with the Saud family of Wahhabists. (Google around 'Rothschild' and 'Ibn Saud'.) And/or consider
and this: Data. jus sayin "wealth business" !??this:
Posted by Tenskwatawa | July 20, 2012 1:05 PM
Moreover, non-Data:
REPORT: Media Prioritize Animal Attacks, Tom Cruise Over HUGE Bank Scandal, July 19, 2012, BEN DIMIERO & ROB SAVILLO, Media Matters blog
Posted by Tenskwatawa | July 20, 2012 1:19 PM
I'm glad I'm not the only one to notice the similarities between the O's business model and Trimet's.
Posted by Zan | July 20, 2012 3:25 PM
Some folks posting here don't understand that The Oregonian isn't in the business of providing information to as many people as possible, i.e. having the largest possible circulation. The Oregonian is in the business of making the most money it possibly can. Raising prices such that the revenue increases even with circulation declines (and let's not forget circulation declines cause declines in operational expense with little, if any decline in ad revenue) might well keep The Oregonian in business.
Posted by SeymourGlass | July 20, 2012 6:09 PM