- Cheap doesn’t equal value
- You’re Investing in outcomes, not outputs
- Capability and depth matter
- Hidden costs add up quickly
- Evaluate value holistically
In an increasingly competitive agency environment, procurement decisions often begin (and sometimes tragically end) with the lowest bottom-line quote. Cheap quotes fit fabulously into budget spreadsheets. But going for the cheapest quote can be a very expensive mistake.
Aggressive cost-undercutting may look like a clever commercial strategy for agencies, but for client businesses it frequently proves disastrous. It’s a bit like assuming retreads are just as good as a new set of tyres for a vehicle that’s about to drive the Sani Pass … in the middle of the rainy season.
You’re choosing a communications partner, after all. You’re investing in the health of your brand, the future of your business, and the relationships you hold with customers, stakeholders and the public.
Acting in your best interests
What you need is a bona fide partner: an agency that invests in real depth, sharp thinking and the confidence to act strategically in the best interests of your business.
Quality agencies are built to be reliable, accountable, nimble and outcomes-focused. They are geared to solve problems, not create new ones. A low fee rarely reflects the full picture of what you’re buying and, more importantly, what you may need to fix later.
Agency pricing is shaped by the calibre of talent employed, the intellectual property developed over time, the strength of internal processes, and the infrastructure required to deliver work that stands up to scrutiny and competitor pressure.
Before signing on the dotted line, these are the things (along with the agency’s track record) that should be interrogated.
Asking the questions
When assessing proposals, value should be examined with the same rigour as cost.
How long has the agency been in business, and what does that longevity say about resilience and relevance? Is there evidence of strategic thinking, not just tactical execution?
Are key skills genuinely housed in-house, or quietly outsourced once the contract is signed? Has the work been recognised by clients or industry peers?
And perhaps the simplest question of all: would their clients hire them again?
Work that doesn’t deliver
The real cost to a business isn’t the agency fee. It’s money spent on work that doesn’t deliver, strategies that miss the mark and partnerships that unravel.
Many organisations know the pain of appointing a bargain-basement agency, only to hire a second, more experienced one to untangle the mess and rebuild trust, while politely pretending the first phase never happened.
Appointing a marketing, communications, advertising or digital agency is an investment decision. And as with most investments, the cheapest option often carries the highest hidden costs. Businesses that understand this don’t just buy services; they buy results that elevate brands and drive profitability.
Tiffany Turkington-Palmer is managing director of Flow Communications.
