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Procurement: Agency Retainer Negotiations

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In July Darren Woolley, Global CEO, TrinityP3 Marketing Management Consultants was invited to speak at the 2016 IPA Client Service Course by the Communications Council of Australia.


IPA Client Service: Agency Leadership is a three day workshop designed to provide tomorrow’s agency leaders with an insight into what it takes to run a profitable, harmonious and forward-thinking business. Combining presentations from agency and marketing leaders of the highest regard with interactive sessions designed to stretch and challenge your thinking, the course will equip you to lead the agency of tomorrow.

Speakers at the sold out 3 course included:
Sydney co-chairs Paul Bradbury and Nitsa Lotus from Whybin\TBWA have also revealed the full speaker line-up:
Rose Herceg - Chief Strategy Officer - WPP AUNZ
Darren Woolley - Chief Executive Officer - TrinityP3 Marketing Management Consultants
Paul Reardon - Executive Creative Director - WHYBIN \ TBWA GROUP Melbourne
Gary Duckworth - Executive Coach/Transition Leader - Paths with Heart
James Ledger - Consultant - The Client Relationship Consultancy
Sonia Motum - Director and Founder - Energy Coaching
Adrian Paul - Chief Operating Officer - WHYBIN \ TBWA GROUP
Justus Hammer - Managing Director & Founder - Sellable & Founder of Spreets
Shaun James - Chief Executive Officer - Presto
Anthony Hourigan - Chief Executive Officer - Hourigan International
Camilla Jury - Head of Corporate Affairs - FleishmanHillard


Publié dans : Business
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Procurement: Agency Retainer Negotiations

  1. 1. marketing management consultants Procurement: Retainer negotiations 2016 IPA Client Service Course Prepared by TrinityP3 July 2016 Commercial In Confidence © 2016
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 13. marketing management consultants For more information read our blog TrinityP3 Pty Ltd Sydney +612 9964 9900 Hong Kong +852 3478 3982 Singapore +65 6631 2861 people@trinityp3.com www.trinityp3.com TrinityP3.com/blog/ @TrinityP3 TrinityP3 TrinityP3.StrategicMarketingConsultants