I run a strategic firm and I’m putting together a proposal for a company who is doing well and needs a plan and execution of all marketing functions except sales (strategy, PR, AD, positioning, management of campaigns, etc.)
This is slightly different than what I’m used to, however I believe that the best pricing module for them is a combination of a contracted monthly retainer and a modicum of funding that goes into a capital account.
My question is: can you give a sound reason for another pricing model (to the client) and if not then what are some of the pitfalls that I should consider as I proceed in pitching it to the client.
Jay’s Answer: To your knowledge, has your client already used this pricing model previously? If so, they’ll know the pros/cons.
If you’d present this to me, I’d ask for a breakout of how much it’d cost for each of the planning/functions you propose. To achieve the agreed-upon goals, I’d want to have a “to not exceed” number (or a fixed price) to ensure no budgeting problems and to allow me to compare your costs with those of your competitors. Depending on the value of the goals, I might even have a performance bonus (if ROI is over X%, I’d pay more, and if less than Y%, I’d pay less).