How do we set the prices for our services?

How do we set the prices for our services?

The valuation of marketing services is always problematic. Customers do not know how much they should pay, and agencies are looking for a profitable model for themselves. This situation gives rise to numerous abuses – that’s why we will try to explain what makes up the price of services offered to you.

4 May 2020 by Jay Jadczak

At the beginning I would like to point out that the article below is not intended to suggest the only right way to cooperate with the agency. It is a text created for internal needs, each client to whom we send an offer receives a link to this text to become more familiar with the methods of our work.

Popular Valuation Models

The three currently most popular methods of accounting for work done are:

  • Hourly model – based on the hourly rate for the work of individual specialists. In this model, the agency presents a schedule and cost estimate, specifying the hourly commitment of its team. The agency, in fact, earns not only on the set mark-up, but also on the inflated labor costs.
  • Model based on generated value – most often in the partial or full success fee model. Settlement based on KPI results in low-value traffic, usually also results in activities that do not meet the client’s initial expectations.
  • Fixed fee model – based on a fixed fee, usually monthly. The big advantage of this model is the predictability of costs. The main disadvantage for both parties – low flexibility, which can be burdensome at a very early stage of cooperation.

Our model

After several years of activity, we decided to work based on the fixed fee model with a precisely defined scope of duties. It protects the best interests of the client and builds mutual predictability of costs and scope of activities

Already the first offer presented to the client contains specific action packages containing:

  • What specifically falls within the scope of our activities
  • The number of organic posts that we create and manage in a given month (for Facebook profiles)
  • The number of creations that we create for the needs of sponsored campaigns in a given month
  • The time range in which we moderate comments
  • Our communication hours in which we are available
  • The method and frequency of submission of the reports of our activities
  • Help with implementing Facebook Pixel or Google Tag Manager
  • Cost for activities beyond the agreed scope of work

Importantly – in no case do we base the price of our services on the client’s potential budget. Regardless of whether the client will spend $1000 on the campaign or will be so pleased that he decides to multiply this amount several times, our rate will not change.

Only in specific, difficult cases we decide to add a commission depending on the amount of sales generated by our campaigns.

We always try to clearly present the offer and billing method to the client so as not to leave any room for interpretation.

What makes up the price?

Each of our projects is supervised by a team tailored to specific needs. You always know who on our side is working on your project.

We form a harmonious, young team, our skills complement each other. We share interest in technology and games. Working on projects in these industries is something natural for us, we fell like a kid in a candy store. The core of our team consists of these players:

Project Manager
SEM Specialist
Facebook Specialist
Graphic Designer
Custom Service

We strive to make life easier for our clients. On our side, the entire project is always run by one person who is in constant contact with the client.

By entrusting us with conducting marketing activities of your company, you will never wonder how to make your specialist come to work on time or your graphic designer submit projects on schedule. In our case, this is regulated by a company-company agreement with much more freedom in terms of the shape of records than in the case of employee relations.

Hiring a good specialist and full-time graphic designer is also a much higher monthly cost than working with a well-managed agency.

Thanks to years of experience, we know the challenges of many businesses. We are able to give you fresh feedback from your business from the outside, from the customer’s perspective. We know what works for other companies in your industry and we are able to determine what will work effectively in your case.

Do you still have doubts? It’s understandable, actions speak louder than words. Check how we solved our clients’ problems and what results we have achieved together!

Check our Case Studies