Procurement: Agency Retainer Negotiations

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TrinityP3 Marketing Management Consultants

www.trinityp3.com 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. https://www.communicationscouncil.org.au/public/content/viewCategory.aspx?id=1081 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 http://www.campaignbrief.com/2016/07/speakers-announced-for-ipa-cli.html

Business

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

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
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

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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 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

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