1.
marketing management consultants
Procurement: Retainer negotiations
2016 IPA Client Service Course
Prepared by TrinityP3
July 2016
Commercial In Confidence
© 2016

2.
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.

3.
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?

4.
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.

5.
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?

6.
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.

7.
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.
The TrinityP3 Resource Rate Calculator available free for iOS & Android

8.
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

9.
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?

10.
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

11.
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?

12.
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.

13.
marketing management consultants
For more information read our blog
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