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It’s so telling how this post has zero responses. And we wonder why agencies are getting their asses kicked. Would be great to get some actual smart business savvy people in our industry to help promote our value and actually get paid for what we do.
I’ve worked agency and client side. The best thing you can do is find out what that client CEO values the most and lead with that in you negotiations. It’s sounds basic but few do it
First off, it’s best to move the conversation away from rates and focus on outcomes. Sell the value of the business outcomes and then rates are largely not negotiable.
Now that’s not always a viable tactics especially with existing clients. So it’s a long game where you work with your finance team to map out how to approach procurement with a thoughtful narrative on why rates are rising. You often will need to demonstrate some “investments” or savings. Remember that negotiating is a dance. Procurement needs to show savings but they can’t do it at the risk of the business. So make sure you’re demonstrating the impact you’re having on the business
Somehow our experiences with procurement tend to be faster and better for both sides. (Knock on wood) Clients can get involved at a deeper level, and while, yes procurement is def bluffing to get the cheapest solution possible, it helps to clearly show where strategies/ services suffer from the cheapest solution. But I do have a question of this thread: how to get procurement to embrace results- and outcome-oriented comp models? (Target cost bonuses, etc.)? That seems to be the FAR bigger challenge: making procurement thinking outside the box of services pricing to deeper partnership models. Any thoughts/experience here?