Question

Topic: Other

What To Charge For Lower Level Marketing Activity

Posted by Anonymous on 8/19/2008 at 8:35 PM ET 250 Points
I've owned my own marketing consulting business for more than 6 years and have recently doubled my rates in this last year (mine were WAY too low before - my fault for not charging more). I'm continuing to get new clients, so obviously my rates aren't too high still. However, my question is this:

I work for a lot of small businesses (i.e. 7 to 10 employees) and even though I charge hourly, I end up helping with a large variety of different levels of marketing activities. It's easy to charge my going rate for things like writing a brochure or developing a marketing budget. However, when I end up running a client's open house and spending 4 hours standing there being hostess and making the clients feel welcome, I feel guilty charging my going rate. I know I'm providing a valuable service and there's no one else at the client's company that can be a hostess like I can, but it could also be done by a lower level, cheaper person. What's your opinion? Should I have different levels of rates for different levels of brain power?

I didn't worry about it too much before as my rates were so low, but now that they're almost around industry standard, I feel a little odd charging that.

Thanks in advance for your opinions.
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RESPONSES

  • Posted by wnelson on 8/19/2008 at 8:53 PM Member
    Jenny,

    As a marketing professional, how do you advise your clients to determine price?

    Ans: The price is whatever the client will pay.

    If your customer pays your price for the less intellectual activities, the customer must see the value in your services equivalent to the price you charge.

    An opportunity present for you, however, is to find someone else you can subcontract the hostess duties to. You would have to find someone you can trust with your client. You would have to train them and make sure they are doing right by your client, but you could subcontract them at a lower rate and apply an overhead rate (25% to 50% higher than what you pay out, for instance) to cover your supervisory activities.

    I hope this helps.

    Wayde
  • Posted by Inbox_Interactive on 8/19/2008 at 9:53 PM Member
    If clients are willing to pay it, then why question if you should charge it?

    It's like an old saying (which I am probably butchering) about why mechanics charge what they do: You're not paying them to turn a screw, you're paying them to turn the RIGHT screw.

    Moreover, if you are truly providing a level of service that a cheaper resource could not provide, then the value is there.

    If your clients feel you're charging too much for a service, they'll tell you. Believe me.
  • Posted on 8/20/2008 at 12:49 AM Member
    If your clients are getting good benefits from your services. then why you charging low? you should charge according to your work load and clients benefits. Satisfaction needs in both end. So increase your charges as much your clients can easily afford.
  • Posted by MANSING on 8/20/2008 at 8:54 AM Member
    Jenny,

    I must say, "You should value your work" and let your customer know how your services are customer oriented?

    In Business there is no favor? Business works on “give and take” and to have profit you have to have business with client.

    “Work Together” and “Value your Offerings, efforts", and technically you have right to charge every single penny for your services/offerings.

    I am confident that they have found out that you are the valuable consultant for them.

    I hope this will help!!

    Mansing
  • Posted by Jay Hamilton-Roth on 8/20/2008 at 9:22 AM Member
    Understand that the value you offer your clients is more than the hours you spend doing an "easy" job. The fact that they know that you'll do an excellent job means that they don't have to worry about your work. They're paying not only for your time but more importantly, for the relief they're getting.
  • Posted by Mikee on 8/20/2008 at 10:19 AM Member
    I concur with others that you stick to your hourly rate. If clients have a problem with it I think they will let you know. You would certainly know if they stopped asking you to do the hosting type work.

    If you feel too guilty about it you could always bill them for less hours than you spent but still at your full rate. If you do this I would indicate that you comped them some time. I think that this shows people your generosity, but still lets them know how long you spent. In the day and age where it seems that everyone is rounding time up this could be quite refreshing to your clients and would certainly cause them to remember it.


    Mike
  • Posted by Mikee on 8/20/2008 at 10:19 AM Member
    I concur with others that you stick to your hourly rate. If clients have a problem with it I think they will let you know. You would certainly know if they stopped asking you to do the hosting type work.

    If you feel too guilty about it you could always bill them for less hours than you spent but still at your full rate. If you do this I would indicate that you comped them some time. I think that this shows people your generosity, but still lets them know how long you spent. In the day and age where it seems that everyone is rounding time up this could be quite refreshing to your clients and would certainly cause them to remember it.


    Mike
  • Posted by michael on 8/20/2008 at 11:21 AM Member
    I've never had a client say I didn't give more than they paid for.

    That's where referrals come from.

    Michael
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