Insights

If you want to increase your fees, make sure your client can see your value

How clear are you about what your client, especially the senior client, values about your work for them or your impact on their business?

When did you last ask them about your impact on their business? Or do you assume you know what they value?

If you only speak with the marketing manager, it’s likely you won’t know what’s actually important to your client’s C-suite and their senior team. Often the marketing manager has a different perspective to that of their C-suite and the senior team.

The danger is that if your senior client can’t see the value of your work then they will simply see you as a cost or see you as expensive and certainly not willing to agree to any increase in fees or rates.

UK inflation is forecast around 3.5% (May 2025). A respectable agency net profitability is 15%. A profitable agency is achieving 20%+.  If you don’t increase your fees simply in line with inflation, then inflation of 3.5% will come straight off your 15% net profit – that’s coming straight off your bottom line!! (I suspect if ‘agency inflation’ was tracked it exceeds general inflation) You could therefore lose a substantial proportion of your profits simply to inflation. If you want to grow your profitability you definitely cannot afford to ignore inflation.

Many clients’ businesses have changed more in the last couple of years or so than in the last 5, maybe even 10 years. “Change” will be tearing through their business like a cold wind in winter. Their CEO and CFO will be looking to cut overheads and grow their topline – a challenge and an opportunity for your agency.

Step back and put yourself in your senior client’s shoes. When your client thinks about you and your agency, what are they thinking?

At one extreme your client might be thinking this about you…

“They are a real business partner. They challenge us (in a good way) and question us. Their insights have helped us question, even adjust, our critical business strategies. Without the agency our sales, market share and profitability would be significantly less”

OR
Your client might be thinking this about you…

“The agency does as we ask, but we now need so much more than that. I’m not convinced they’ve impacted our business, our sales, our success or our profitability. I’m sure we could find another agency which is better, cheaper and smarter.”

So back to the title of this article. If you want to increase your fees to your client, then your client needs to clearly and measurably see the value and impact of your work on their business. If you’d like my help increasing your agency’s fees to your clients let’s talk. Drop me an email to chris@spring8020.co.uk