Print
Solutions November 2005
Mailbag
Editor’s
note: The following letters
are part of a discussion that
took place on DMIA’s members-only
broadcast email system. The discussion
centered on why and how an advertising
agency was able to charge a government
agency $75,000 to brand its local
beaches.
A
government organization has budgeted
$75,000 to hire one advertising
firm to “brand the city
beaches.” This amount
includes market research and a
logo design. When I heard this,
I almost fell over because I have
in the past gotten quotes from
several graphic artists that can
do a branding package, and the
price was $5,000 maximum. I’m
curious because I know how good
advertising agencies are at presentations
geared to part people from their
money unnecessarily. Does anyone
know what this kind of thing costs?
Also, does anyone feel that this
organization is irresponsible
for considering this amount of
money for this sort of project?
Kathleen
Brennan, CDC, CEO
Proforma
Info Pros
Galveston,
Texas
This
is a great example of explaining
the value of a service as opposed
to the cost of the service. It’s
not that creative services are
sold by fast-talking liars. Rather,
it’s that the marketplace
values the profit potential of
a good idea. What is the economic
impact in the Houston/Galveston
area of coastal tourism? I don’t
know, but I’m sure it’s
in the millions of dollars. Seventy-five
thousand dollars spent to bring
a return of several million dollars
is the value at stake. If the
decision-makers felt comfortable
using a $5,000 solution, they
would. For $75,000, they’re
going to get a staff of strategists
and art directors as well as artists
and photographers who will entirely
devote themselves to “beach
branding” until they have
a really great plan to grow that
business. For an issue so economically
important to the area, it could
be argued that they would be negligent
to go “cheap.”
If
through extensive and expensive
market research the brand returns
$2 million of new business, then
the $75,000 is only 3.75 percent
of the sales increase. By golly,
with a price that reasonable the
ad agency is practically giving
it away.
The
forms industry is so far removed
from this way of thinking that
we have chosen to be paid through
the sales of our products in competition
with folks who work out of the
trunk of their car. That steep
one-time cost of $75,000 will
result in tested logo artwork
that the government entity will
then distribute to printers and
media outlets at will. The ad
agency won’t make ongoing
revenue once the project is done.
When you spend time developing
a process, do you tell the customer
you want a percentage of the value
of as a one-time flat fee? Or
do you hold your breath and pray
that you get at least three repeat
orders to make the process development
worth it?
Steve
Visio, CDC, President
Executive
Data Control
Springfield,
Mo.
When
talking about corporate identity
and branding you must define the
scope of the project. Seventy-five
thousand dollars does sound like
a lot, but it depends on what’s
included. That amount may include
press releases, and designing
and placing ads or TV spots. We
do corporate identity and branding
for our clients, and it includes
logo ideation, industry research,
all final art, a corporate standards
manual, and art and design of
a stationery system. The packages
cost anywhere from $12,000 to
$25,000. We do one of these programs
about every three months. The
best thing about it is we always
wind up with all the print business
because the client realizes it’s
not the “marks on the paper,”
it’s the information that
it communicates to the audience.
E.H.
(Skip) Campbell
President
and CEO
EHC
Inc.
Columbus,
Ohio
We
do a lot of “conceptual
design” at PrintConcepts,
and it’s probably one of
the most expensive things we offer
to clients. Why? Because it’s
conceptual, and it’s unique.
It takes artists, marketing experts,
writers and salespeople. We often
tell our prospects that we’ll
actually spend more time thinking
about their project than most
of our competitors will spend
doing it. Successful agencies
don’t try to convince their
clients they can afford their
creativity. They show clients
they can’t afford not to.
Here are some questions:
•
Why do they want to brand their
beaches?
•
Who will most benefit from this
branding?
•
What other cities have branded
their beaches? Were they successful?
If so, what have they gained?
•
What is different about their
beaches than other beaches?
•
What advertising methods will
be used other than print to promote
the beaches?
•
How will any campaign be measured
for its effectiveness?
Think
of all the work that goes into
answering these and other questions.
Then think about the work that
goes into presenting it and quantifying
your findings to support your
position. All this, and we really
didn’t lift the pencil to
draw or design anything yet. This
is much different than a graphic
designer whipping up three or
four “beach theme”
logos and saying “You owe
me $75,000.”
Creative
design, conceptual design, content
management and branding are expensive.
It’s an art more than a
service. I see people from the
print industry never able to grasp
this because they’re stuck
on the $90 it costs to set a 91Ú2
x 11-inch form, and having a purchasing
person complain about the price.
In my opinion, if you have a prospect
who has budgeted $75,000 to spend
for a branding project, they’re
someone you want to pursue. Imagine
the printing, promotional advertising,
and other related budgets that
go along with that branding budget.
Mike
Fisher, CDC
President
and CEO
DMIA
Board Member
PrintConcepts
Orefield,
Pa.
