- On March 16, 2020
Over the last couple of months, it has become clear that we are headed for a prolonged economic downturn on a global scale. The cyclical nature of the economy is such that it has its ups and downs. The tricky aspect of this is that it challenges business owners to establish processes that enable them to withstand turbulence in the economy. The rapid global spread of the novel Coronavirus doesn’t make things any easier.
Ask yourself this: is your digital agency prepared to roll with the punches in these trying times. In this blog, we discuss two main factors you should focus on to ensure that your business comes out of the other side of this storm standing.
One – The Achilles’ Heel Of Our Industry: Pricing Strategy
The digital industry generally doesn’t pay much thought, strategy or deliberation towards how prices are set. Most of us pluck figures that are loosely based on industry averages, which neglects the unique financial needs of each agency. In some instances, this results in unsustainable pricing, which becomes especially pronounced in a strained economic situation.
“What I’d suggest you do to start with is go back and have a look at the way that you set your prices and make that support your business, [providing] a decent wage for you as the owner and the profit in the business as a legal entity. We have some great resources at Globital, which there’s no cost to access around pricing strategy,” explains Globital’s Managing Director, Damian Papworth. (One of the resources he refers to is the company’s Profit Perfect Pricing cheat-sheet).
Two – Staying Ahead Of Your Clients’ Needs To Ensure They Keep You Around
At this very moment, it’s likely that your clients are sitting with their accountants in a panic, trying to work out ways to survive. The resounding resolution, in most instances is to cut costs, which may – albeit counterintuitively – include marketing. This places us as digital agencies on the chopping block.
The best thing to do in this kind of situation is to get in front of your clients and stay there by communicating clearly what value you add to their business. Remind them that they will need more leads in this time and that you can provide that. If you rest on your laurels, your agency will be one of the costs that your clients eliminate in an effort to save money.