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-Pricing Strategy-

How to Be a Price Maker Instead of a Price Taker

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How to Be a Price Maker Instead of a Price Taker

Most firms feel they’re stuck on a treadmill when it comes to agency compensation. Actually, it’s more of a time warp. That’s because the cost-plus model employed in most agency-client agreements dates back to the early days of the industrial age …

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An Open Letter to Marketers: Caveat Emptor

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An Open Letter to Marketers: Caveat Emptor

“Buyer beware” might also be described as “sold as is” — a warning about deals that seem too good to be true. Given the power currently ceded to procurement professionals inside client organizations, “caveat emptor” applies to agency-client relationships more than ever before...

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A Gross Failure of Imagination

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A Gross Failure of Imagination

Do you feel locked in a zero-sum game with the professional buyers of your services (procurement)? Most firms do. A zero-sum game is one in which gains for one party result in losses for the other party. In effect, each party is fighting for a bigger slice of the same pie ...

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Transparency is for Windows, Not Pricing Professional Services

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Transparency is for Windows, Not Pricing Professional Services

Most professional firms have been marching down the path of cost-based compensation so long that it seems normal to answer questions about salaries, overhead, and even profit margins, but it is decidedly not normal. In no other industry — outside of classically-defined commodities — does the seller disclose their costs in this manner to the buyer ...

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Instead of Lowering Your Price, Lower Your Client's Risk

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Instead of Lowering Your Price, Lower Your Client's Risk

Who bears the most risk in an agency-client relationship?  Clients who buy hours are really only buying buckets of inputs that may or may not correspond directly with the needed outputs or produce the desired outcomes. Herein lies the risk being taken on by the client. The agency will work its hours and collect its fees regardless of whether or not the work is effective. 

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