ON THE BENCH INSIGHTS

5 Tips for Agencies: Pricing & Structuring Service Offerings

We got the chance to chat to Henrik Becker - a Freelance Marketing Technology Strategist and Business Consultant.

In this session, Henrik spoke about pricing and structuring your offerings as an agency and he recommended a few things agencies should consider doing right now.

Watch the recording below

5 tips V2

 


Henrik Becker is a Marketing Strategist and Business Consultant who has consulted for many agencies and businesses

If you’re looking for help with your business as a HubSpot Agency, view Henrik's Roadmap to Success Service Bundle. Or, if you have a more custom request or would like to discuss a longer-term arrangement, send him a brief.

Q: Firstly, tell me a bit about yourself and your background.

Henrik: I worked in Digital Marketing and Marketing Automation for about 10 years for a lot of agencies, with a lot of different tools and for many different international clients (mainly the USA and in the Netherlands). So you end up picking up a lot of different skills.

I do a lot of strategic work with agencies. I get hired to help agencies out with their customers, to provide guidance to the junior agency teams and also to give a fresh perspective on things.

Because I have worked with some many agencies, I've taken on a more strategic role working with them: their delivery, their processes, how to structure their business, what their vision is, how to transfer that vision to their people, how to get things done and keep things moving. I’ve turned into an agency coach.

Q: Last time we chatted, we got into a very impassioned discussion around how to how agencies are structuring and pricing their offerings. On the consumer side, what do you think businesses are expecting in pricing and service structure and how are they selecting selecting agencies?

Henrik: I think a lot of businesses that are a good fit for HubSpot agencies have very basic marketing and they want to take the next step but they are not sure how it works. To them hourly rates feel very safe. It feels tangible to be able to negotiate $10 an hour off of the price and you’re going to get 40 hours of work.

The truth is that it doesn't tell you anything. I might do a lot more work in 40 hours than the other guy but we get paid the same. That is something I’m seeing a lot - “Can you specify the hours?”. Usually it’s about perceived value and not the actual price.

Q: Then, on the other hand, what should agencies do when it comes to structuring and pricing their offerings?

1. Templatize:

  • You should make things as easy on your end to replicate or duplicate and don’t charge less for it.
  • You’re going to have to systematize and make your own stuff cloneable. I love the clone tool in HubSpot - I couldn’t do without it.
2. Growth as a (monthly) service:
  • I have heard about this trend - You pay a monthly subscription to a Growth Agency. This model is viable as long as you communicate to your customers what you are doing and what the results are.

3. Don't do hourly rates

  • In HubSpot, they advocate for building retainers around a set number of things. For example, monthly reporting etc) and there is an extra number of hours which can be used for whatever else is needed.
  • Move more to retainer-based arrangements where you show value month to month. I think with the whole subscription-economy, a lot of businesses are getting onboard with that.
4. Package your offers
  • Package your offers just like you do at On The Bench - you create an offer and say “We do this and this and it will cost you X."
5. Don’t try to do everything in-house
  • There’s a strong sentiment, especially among agencies, to have their own people. I think the problem is that you end up having a lot of juniors.
  • Then they hire more senior people like me to provide the knowledge to the team
Posted by Julia Short on Jun 29, 2020 9:22:27 PM
Julia Short

Julia Short

Julia Short is a Digital Marketing Manager at On The Bench. Email julia@onthebench.io to get in touch.
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Topics: HubSpot Agency Partner, Agency Advice

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