There will be consequences
My eye was drawn to the posters for the new “Equalizer 2” film starring Denzel Washington with the sub-headline “There will be consequences” which got me thinking about how agencies negotiate with clients, sometimes without thinking through the consequences.
Essentially we can offer our clients all sorts of crazy deals, race to the bottom prices, over the top ways of working and crazy over-servicing however there will be consequences for us at a later stage. Those consequences are likely to be expensive financially, relationship-wise and confidence-wise.
Before you say ‘yes’ to clients, before you propose that irresistible deal, before you drop your price, before you add lots of ‘added value’ in exchange for nothing, STOP.
Stop and think about the implications of your decision for you and your business long term. What precedents are you about to put in place that will be so hard to undo?
Generosity in the short term can prove very expensive in the long term. Once you’ve offered that rock bottom price and the client says yes, you are now stuck. Guess whose fault that is? Yours!
As an agency there’s little point in winning unprofitable business.
I used to have an agency boss many years ago who said to me “just get in there, win the business on a low fee and then increase your price once you’re in there”. This is a rubbish and stupid strategy. Agencies cannot afford to be naïve and uncommercial.
What precedents have you set that you now regret?
What are the consequences of those decisions?
I’ve studied what the most successful agencies do to grow and also what the least successful agencies do to stay stuck. Add this to my own 20 years agency career at director level plus 15 years consulting with over 120 agencies. In my workshops I share the gold nuggets I’ve learnt to transform your agency’s profitability and productivity. Can I help you take your agency to the next level to fulfill its potential?no comments