Inflation? But this is too much
Friday, August 8th, 2008Inflation must be having a toll on PR and marketing agencies.
Pressure from employees trying to compensate for the decreasing value of their wages by pay rises, fuel costs rises for the office and transport amongst other things.
But it is hard to ask clients to pay more if they are more cost conscious than for some time and return on investment is key.
One exception seems to be the tracking / cuttings agency I like to use. Prices have doubled in more than a year. There are some improvements in service and their suppliers have upped costs, but it is too much.
Businesses have to know what the breaking point is.
Pricing can lose you business, for being too high or underselling your services. It needs to be tackled with sensitivity or at least thought. Doubling prices without a strong enough argument (in my view) can be classed, if we are being generous, as “bold.”
