Question

Topic: Strategy

What Do Consultants Charge For Marketing Plans?

Posted by Linda Whitehead on 7/20/2009 at 9:55 PM ET 250 Points
Hi everyone,

I am taking on a project for an apparel company where I will be responsible to create 4 separate formal marketing plans for 4 separate brands. In fact, 2 of these brands are part of separate companies acquired by this Canadian company. operating in the US. Research and information gathering will be my responsibility. There is no existing marketing plan for any of the brands so I have to work from scratch.

I would like to get some feedback from other marketing consultants as to what they would charge for a project like this. Please let me know what further information you may require to answer this question properly.

Much appreciated!

Linda Whitehead
Zuz Marketing
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RESPONSES

  • Posted by ranjanpaul on 7/21/2009 at 1:45 AM Member
    Hourly seems a better way to get started. That way you can always factor in the unexpected when it happens (and it does happen). Also, a fixed retainer shows up as a big number on the financials and in these days of recession and cost cutting, may not go down too well at the approval meetings.

    As you move forward and build a strong relationship with the client, you could also incorporate profit sharing. But that of course would depend upon the nature of the client organization.

    Hope this helps.
  • Posted by ilan on 7/21/2009 at 6:46 AM Member
    As you know the consultant status points to a professional who charges by the hour. If you work for a big corporation you can have a high hourly rate, and it will be acceptable. But if you want the business and your client is a small business, obviously a lower rate is better...
    When it comes to a marketing plan, consider the overall value of the work for the client, and the possibility of spending a lot of overtime in revisions, meetings, travel etc.
    If you have a way of creating value for them by estimating a project fee, this may work as well.
    It all depends on your situation.
  • Posted on 7/21/2009 at 7:45 AM Accepted
    I would avoid the hourly rate. The client watches the clock (and so do you). If you're fast, you're penalized; if you're slow the client gets impatient.

    I would price each separately, and offer options (say regular, special, and super); spelling out the value differences in each and why they're priced differently.

    More on this here:

    https://www.michelfortin.com/the-key-to-getting-the-fees-you-deserve/

    Jodi
  • Posted on 7/21/2009 at 7:49 AM Accepted
    My suggestion: Do NOT charge on an hourly basis. It encourages you to be inefficient and it encourages the client to avoid giving you all the information you need. The meter is always ticking in their minds. Don't do that to yourself.

    What I would do is try to determine (a) what the marketing plans are worth to the client, and (b) how much time will really be required. Use those two factors to come up with a fixed fee. Then indicate that the fee could be higher or lower by, say, 20%. If the project goes quickly, come in under budget. If it takes more than you expected, you'll cap the client's responsibility at +20%.

    With a little luck, you'll come in under on one or two of the projects and over on one or two, with a net effect of "exactly on budget." If that happens, be sure the client understands the offset, so they see that you actually came in under budget on something, and that your variable price cuts in both directions.

    The pricing options for consultants are covered in some detail in Rasputin For Hire. The subtitle is An inside look at management consulting between jobs or as a second career.

    If you use the link above to order the book, you'll also get a special 23-page report (PDF download) free. The special report is actually a round table discussion -- like a focus group -- with five of the top experts here on the MarketingProfs Know-How Exchange. They share their own experiences as consultants and offer advice for new consultants.

    MarketingProfs members and guests can also order the special report without the book, if they want.
  • Posted by Linda Whitehead on 7/21/2009 at 8:39 AM Author
    Thanks everyone for your help and input. I have a meeting today so wanted to know what other professionals are doing. I do agree that I should not go the hourly route. Thanks again for taking the time to help.
    Regards,
    Linda
  • Posted by matthewmnex on 7/23/2009 at 8:45 PM Member
    I agree with mgoodman, don't try to charge hourly.

    It sounds like this assignment will be full time for several months so I would try to charge them a monthly fee + OOPE

    $10,000 per month sounds about right but it is up to you to fix a figure for your labour.

    Always get the monthly fee in advance :)

    Good luck.

    Matthew
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