A new IPA white paper, The Price of Success, was unveiled at this year’s IPA Business Growth Conference.
Authored by Janet Markwick and Sam Jordan, the paper was commissioned to help agencies address problems with the traditional Cost-Plus-Billing model in an era of declining agency fees and growing agency workloads. It will act as an invaluable companion for agencies to ensure their pricing strategy is related to the value generated for the client rather than the resources used.
They identified six key factors within an agency pricing strategy:
- Client needs: what they really want and value
- Activities, Services & Products: your offering
- Value attribution: what services can be valued
- Risk: where agencies and clients need to be brave
- Relationships: the important of trust
- Commerciality: who owns pricing
Says Marc Nohr, Chairman, IPA Commercial Leadership Group and CEO, Fold7: “The traditional Cost-Plus-Billing model is becoming more and more inadequate as a way to account for the increasingly complex and diverse services that agencies offer and the true value of what they deliver to clients.
“That’s why we’ve commissioned, The Price of Success, which defines the challenges, competitors, complexity and commercial reality facing businesses and gives agencies a wide range of tools to better reflect the value they generate for clients. It will serve as an important handbook for our industry, driving forward the next wave of business growth for agencies.”
About the authors
Janet Markwick, Founder and CEO, Markwick Consulting
Janet sits on the IPA Commercial Leadership Group and brings a wealth of knowledge from both a client and agency perspective into how agencies can achieve commercial growth.
Before Grey, Janet held senior financial, marketing and commercial roles at Coca-Cola and Sony, where she was Director of Marketing Communications Investment EMEA.
Formerly Global EVP of Commercial Operations and Production at Y&R, Janet recently established Markwick Consulting, her own consultancy business, working with leaders and their teams to build truly innovative, future-ready commercial solutions, capabilities and operational structures that scale efficiencies aligned to what clients and agencies value.
Sam Jordan, EVP, Manifesto Growth Architects
Sam runs the North American office of Manifesto Growth Architects, a strategic consultancy with offices in the UK and the US. He also leads its global media practice. His clients include major TV networks and publishers as well as technology and financial-services brands.
Manifesto Growth Architects unlocks growth potential for its clients by designing customer propositions that deliver better experiences for customers and value to the business. The consultancy figures out what customers really value, what needs to change to meet their needs, and how to make it happen.
Prior to joining Manifesto, Sam held senior management positions in agencies and brand consultancies in London and New York.