Value is in the eye of the beholder Last year I worked with a number of agencies which, in addition to their traditional pricing models, introduced value based pricing methodology. Value based pricing shifts the focus from talking about how the work is done, to the results the client should expect. So to be effective, [...]
Rates - update your cost and sell prices An agency should be reviewing its cost and sell rates at least once a year, often this is either in line with the new financial year, or at the start of a new calendar year. Armed with your latest budget, calculate your cost per hour rates for [...]
In a competitive and crowded marketplace Agencies often struggle to stand tall and protect valuable ideas. Its important to remember we have industry best practice tools and techniques to ensure that recognition, reward, and respect, is maintained. Intellectual Property (IP) possibilities are infinite and limited only by one’s imagination, yet there is a danger: if [...]
This 2.5 minute YouTube video is definitely worth watching and 2.5+ million other viewers think so too. If you haven't seen it, click on the link and remind yourself why it's so important to stand up for our profession and #SayNoToSpec http://www.zulualphakilo.com/saynotospec/ Respect to Zak Mroueh, Chief Creative Officer & Founder, Zulu Alpha Kilo, and [...]
Time is precious, and yours is best spent understanding and discussing the results, not preparing all the spreadsheets and checking the data. My first piece of advice to business owners and managers is 'don't live in Excel'; rather: implement the right job management and accounting systems, and invest in the right person to train your [...]
You know how important your brand is for the success and value of your business. But, do you know how to calculate that value and turn it into profit? Follow me throughout this article as I explain the calculations of brand valuation and how you can identify and quantify your brand assets to enhance and [...]
There is no law, nor ethical imperative that says you must charge two clients the exact same amount for the same services. Your services are rarely identical and the value perceived by those respective clients will always be different. Part 2: Value is in the eye of the beholder – the client’s eye. Add Value [...]
Do you believe that your ideas have value beyond the time it took to conceive them? Do you think that your big idea continues to deliver returns for your client beyond the initial time it took you and your team to develop and execute it? If you answered YES, then you are in the right [...]
As the heading suggests, understanding the difference between Markup and Margin calculations is essential for your business. Markup is the additional amount added to third party costs, to arrive at the total amount charged on to your client. Margin is the difference between the cost and the sale. So, with this is mind: What is [...]
Head hours – do you know what your billings target is? If you have 6 in your Account Service team, working to industry norm productivity levels, and billing at industry norms rates, then your optimum head hour billings will be around $100K per month. The keys to achieving optimum billings are: using the right charge-out [...]
