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As fall approaches and clients start working on plans for 2020, it may be time to raise your agency’s prices.

Chip and Gini explain why you should be thinking seriously about bumping up your rates (and what it can mean for your bottom line), and they also offer tips on how to do it effectively.

Quotes

• Chip: “I run into very few agencies who are overcharging their clients, and many, many, many, many who are undercharging their clients.”
• Gini: “Eventually, you need to run your business as your agency as a business. And I think we can agree that that now is the best time to start doing that whether or not you think you need it.”
• Chip: “I’ve had clients in the past I’ve gone to, and I’ve told them that they have to pay twice as much for what they’re getting, if they want to continue. And I tell you what, every single time I’ve done it, 100% success rate on that. If someone is being that over serviced, they really recognize  it.”
• Gini: “Clients are really reasonable. I mean, they get raises every year. Why shouldn’t they be paying their agency a little bit more every year?”

Resources

• A small price increase can lead to a big boost in profits for your agency (Agency Leadership)
• How to Grow Your Agency Without Retainer Work (Spin Sucks)
• Anchor Advisors

[read the transcript]

About Chip Griffin

Chip Griffin is the Founder & CEO of the Small Agency Growth Alliance (SAGA) and a longtime agency owner and executive. He helps PR and marketing communications agencies build better businesses. Full bio