There are numerous instances where clients request a Rate Card, which is like a price list, if you will for advertising agencies. Truth be told, it is quite a task to quantify and standardize agency services. There is no blanket cost for simple items like say, Logo design. When pricing an agency has to first consider the task ahead, how long it will take, the resources involved on the project, how much research and edits will be done. Obviously, difficult and time-consuming tasks will cost a little bit more than easy tasks that take less time.

These are the three broad cost categories where most advertising and marketing agencies fall:

Hourly rate

Hourly pricing is when clients are charged for staff’s time, by the hour. Hourly rates are ideal when unsure of how long a project can take. However an estimate of how long the project is going to take still has to be done. In cases where the estimate falls short and the project takes longer than expected, the agency is forced to absorb the cost. Unless of course the client accepts a revised rate.

Retainer model

It refers to an agreement between a business and an agency to work together for a period of time on more than just one project. It includes a monthly or quarterly budget in exchange for a wide variety of services. A long-term relationship allows an agency to become very familiar with a brand and help execute long-term business goals. It offers consistency, continuity for the brand and since the services are considered wholesale. It is therefore value-for-money for brands with lots of briefs.

It also helps agencies to source and assemble the best talent with razor sharp focus on that particular brand. 

However, it’s not all rosy as sometimes the retainer model does more harm than good, for instance retainers may lead an agency to overpromise and under deliver. When a client is risking a fortune in advance on an agency, they expect top notch services 24 hours a day, everyday. They also expect instant return on investment, in most situations this is detrimental to the relationship of both parties. 

Pay per task

Pay per task, as the name suggests, you send a brief and are charged for exactly what you ordered. This enables businesses control their budgets, know exactly what they are paying for and utilize their funds effectively. Heavy and time-consuming tasks will obviously be more costly than light tasks. This model can be favourable to clients with fewer tasks but can be a disadvantage to clients with many briefs as they are better off negotiating for “wholesale” prices.

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Esther: 0725 527 906   Write To Us: info@designvillage.co.ke