Question

Topic: Copywriting

Pricing A Media Plan For A Creative Agency

Posted by Anonymous on 3/31/2009 at 1:56 PM ET 75 Points
I have a request for a 12 month media plan. The media budget has not been disclosed and the creative agency is handling the research on demographics/target in addition to the....creative.

My thoughts are to price this hourly, but they have requested a flat fee and a list of "what I would provide."

In addition, the media buying is not guaranteed.

I do not want to sale myself short, but I do want to remain competitive.

Any suggestions?

Thank you.
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RESPONSES

  • Posted on 3/31/2009 at 6:32 PM Author
    Thank you Phil.

    I'm working out a conditions clause to insure I handle the media buy - with terms to be negotiated.

    I'm thinking about using a flat fee including an hourly cost if my time exceeds X. Or I'm weighing in on a monthly retainer because the media plan will include press releases for the each scheduled event.

    I'm getting answers similar to yours from local colleagues in regards to the ambiguity of the request.

    I appreciate your post.
  • Posted on 3/31/2009 at 8:28 PM Accepted
    I'd go with a fixed fee and clear deliverables, perhaps with a proviso that it's + or - 20%, based on any changes, new information or other requests that require modifications.

    You might also look at providing plans for three levels of spending: low, medium and high. Then you can explain what they get for increased spending and why it's probably in their best interests to go as high as they can initially, so they can learn quickly what works and what doesn't. (Why drag out the learning process?)

    The problem with hourly rates is that they encourage you to be inefficient, even when you don't intend to be. And it keeps the client from interacting with you as much as they should because they're watching your meter tick away their money.

    As long as you are very clear on the deliverables and timing, then a fixed fee is ultimately a more equitable way to go. Try not to get sucked into the hourly thing. If they want work beyond the agreed deliverables, you can always set a fee for that when the request is made.

    BTW, a lot of this is covered in Rasputin For Hire. There is a whole section on pricing consulting services, and that section alone is worth the time it will take to read the book. (You'll probably find other tidbits that will help too.)

    Good luck.
  • Posted on 3/31/2009 at 10:18 PM Author
    I'm going to run with the tiered deliverables and a +/-% for modifications.

    I think the creative agency will be more willing to accept the bid with an outlined price quote as opposed to hourly - I sure would be.

    Thank you VERY much for the feedback, both responses were helpful.

    I'll visit your book this weekend, it appears to be a great resource.
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