Know-How Exchange : Advertising/PR

My take on this question is: company A wants to find out what company B is paying its agency for events. I'm assuming they're not sharing the same agency. Is that correct?

Mybe I'mmissing the ethical point here but what is the issue you all are facing with doing a little competitive research? If i"m a manufacturer, and use massive amounts of nuts and bolts to create my product . . . I would want to know what my competitor is paying for the same materials so i can make sure I'm getting the best price. Where is this different?

Now, of course, to find it out you'd have to call the agency, present yourself as a prospect with basically the same needs as the competitor, and generate a proposal. Who knows, maybe the same company will be the right company for you in which case you're not pretending at all.

If, on the other hand, you are a competitor with that agency, it would be all pretend but let's face it knowing what your competitors are charging ain't bad info to have.

As I say, I may be missing the point or perhaps my ethical foundation needs shoring up but I'm not troubled by this

ipawlowski, I agree with Phil on this one. The truth of the matter is that pricing, even for the same client, is never the same. Like Phil said "it's whatever they'll sit still for."

That said, if you act like you tried, it won't stop them from coming back and asking you for more and how many excuses are you willing to make up over time?

From my experience on the client side and having played these games with vendors [what can I say, sometimes it's politics!:)], the one thing you should consider asking yourself is if your client has more of an issue with what you are charging them versus how much they assume the competition is paying. It might be a good time to do a review of all the deliverables and value your agency has provided.

Hope this helps!
Beth Harte
Community Manager, MarketingProfs
@bethharte

Beth,

Thanks for your input.

The reason for our client's request is that his company has a new president coming in and this specific employee wants to ensure that the company keep working with us. It's not that he wants to compare our rates with others. I assume he'd do that on his own and wouldn't tell us about it if that were the case. He's trying to make sure that he (and we) have all the ammunition needed in case the new president decides to shake things up, as many do.

How will knowing what a competitor is paying his agency help ensure that the company keeps working with you? Now I'm really confused.

If you're charging less, it's going to sound like you're the "bargain brand" and not delivering the best result. If you're charging more, the client should make you justify the price and convince them they shouldn't switch agencies. And if you're about the same, what have you gained?

If the new president wants to shake things up, I doubt that knowing what a competitor is paying (to another agency) is going to somehow change his/her mind.

P.S. If they're asking the question, they ARE going to compare what they're paying you to what the competitor is paying its agency. I'd bet money on it. Wouldn't you?