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marketing management consultants
Procurement: Retainer negotiations �2016 IPA Client Service Course�
Prepared by TrinityP3 July 2016
Commercial In Confidence
© 2016
marketing management consultants
Who are here to manage, NOT serve In an increasingly complex world of data, digital, creativity, strategy and technology we really need someone to manage this process effectively, not simply serve the advertiser.
marketing management consultants
Are you a cost or an investment? What is your purpose? Why do you do what you do? Why does your agency exist? What value would be lost if your agency closed up tomorrow?
marketing management consultants
Procurement is best at cutting costs Procurement is there to improve the bottom line. That is maximise revenue and minimise cost. Most of their time is spent on reducing costs as it is accountable.
marketing management consultants
Define what is required, how much and when How do you define your scope of services? Your scope of work? Your schedule of work? Your goals and objectives?
marketing management consultants
The resources required are a cost At an hourly, daily, annual rate you are a cost to the business. You are a commodity. You are a cost centre to be negotiated.
marketing management consultants
Billable hours in a year is productivity The number of billable hours is a negotiating point. The higher it is the lower the hourly cost. The lower it is the higher the hourly cost.
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marketing management consultants
The overhead on those resources is a cost
Your overhead is a negotiation point. What is included and excluded. Direct and indirect costs. It’s a measure of efficiency
marketing management consultants
The profit you want to make is a cost Profit on revenue is a negotiation point. There is no reasonable or fair profit. And is it accurate anyway?
marketing management consultants
Anyone can benchmark costs Past costs become the benchmark. Agency salaries, overheads and costs are reducing in real terms. There is always someone that will do it cheaper. TrinityP3 Ad Cost Checker System wwww.adcostchecker.com
marketing management consultants
But how do you benchmark value? What is value for the advertiser? What is the value you create? What is the value you contribute? Can this be measured?
marketing management consultants
How do you prove your value? 1. Decide if your agency is a cost of business or an investment for your clients. 2. Change your remuneration model from cost to value. 3. Be willing to become true partners with your clients.
marketing management consultants
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