Why you need to shift to value, not cost in marketing
The danger for marketing is that as Oscar Wilde said, “we end up knowing the price of everything and the value of nothing”. Media pricing, agency fees, production costs are all being questioned and continue to be under pressure. But when is value to be added to the equation? Find out why this is so important here in a Golden Minute.
A question I get a lot is “how much should a big idea cost?”
Well what do you think?
If you are paying on retainers or hourly rates the real question is, “how long does it take to have a big idea?”
And that is how long is a piece of string.
The agency will want it to take as long as possible and involve as many people as possible.
In this case the seller is setting the price or cost.
But here is a better question, “what is the big idea worth to you?”
I know that is not easy to answer, but consider
How strategically important is this idea? and what is the financial value of the brand or business you will use it to promote?
Suddenly you the buyer are setting the price.
The price represents the value.
The value the agency work represents to you and the business.
And it is not just big ideas.
You can set a price or value on anything and everything.
It is value-based pricing.
Because marketing is not a cost. Is it?