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Tara Bernardino
Tara Bernardino

1) Tara Bernardino attended a WPP Accord workshop on client pricing and negotiations that provided practical guidance on establishing worth and value. 2) The workshop emphasized basic concepts like not undervaluing your work, recognizing that value is subjective, and providing clients with choices in proposals. 3) Attendees worked on developing pricing proposals with different options at different price points to give clients power of choice and rejection while keeping the agency in the driver's seat.

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Tara Bernardino,MSc Vice President,ManagementSupervisor SudlerNew York A Brief Synopsis of a WPP Accord Client Pricing andNegotiationWorkshop For What it¡¯s Worth¡­. A Workshop Worth its Salt Whenwas the lasttime youattendeda workshoportrainingsessionthatreallyfeltworth the volume of unopenedemailandlossof billable worktime? We oftenspendworkshopscheckingourphones,witha growinglevel of anxietyaboutwhatishappeningbackatthe ranch that we cannot immediatelyattend to¡­combinedwiththe periodicsneakpeekatthe agendatosee whenthe nextcoffee breakis,and prayingthat someone refilledthe Splenda (nojudgment). RecentlyIwasinvitedtoattenda workshop hosted byRickBrook,NickFord,and Tom Kinnairdaspart of the WPP Accord Program, designedto¡°bringseniorpeople togetherfromall of the WPPcompaniesto discusscommonbusinessissuesandtohelpeachotherfindsolutions.¡±The somewhatgeneral title beliedthe verypertinentcontent¡ªclientpricingandscope negotiations,facing procurementwith confidence,andunleashingandsharpeningskillstosuccessfullysell inbusinessforwhatitis worth to the clientandthe Agency,vsthe cost. WE HAVE WORTH?!What a concept.We aren¡¯tjust hamsterson a wheel mannedbyan oldcrone feedingnickelsintothe coinslot¡­ While admittedlythe barmayhave beensetratherlow in mycynical mind,thisturnedoutto be one of the bestworkshopsIhave everattended. Why?Because of the simplicityandcandidnature of the session. Seemingly obviousprinciples wererelevantly appliedtothe pricingchallengeswe face dailyin our clientinteractions. Some examples of these basicconceptsare below: 1. You will never be paid more than you think you are worth. So true!Andnot onlyrelevant to clientfinances.One of the reasonsthisworkshopreallystuckwithme forseveral weeksafter it tookplace wasbecause muchof the contentwas applicable tolife outsideof the office.If I don¡¯tthinkI¡¯mwortha promotionora raise,whythe heckshouldanyone else? 2. Don¡¯t give it away for free. Why do we thinkwe have to lowball ourfeesinordertosell in business?Of course clientswill sayyestolow(er) prices¡ªwhenwasthe lasttime youtolda store clerkthat youdidn¡¯twantthe sale price?! But if we keepundercuttingourprices,the benchmarkdropslowerandlower.The whole conceptof a¡°onetime¡±deal ordiscountdoesn¡¯t workwithclients.Theyhave selectiveandshort-termmemories. The ridiculouslylow costyou agreedto outof fearof notgettingthe business,justpigeonholedyouintothe ¡°momandpop¡± sweatshopcategory. The waythisappliestoourpersonal livesneeds noexplanation.Ladies¡ª yes,I¡¯mtalkingtoyou. 3. Value is subjective. The same item will have different value to different people.¡± Thisis the classyversionof ¡°Oneman¡¯sjunkis anotherman¡¯streasure.¡± Iwill paymore fora good cup of coffee thanIwill fora meal.A yoga guru friend of mine thinksthisisawaste of moneythat
feedsanunhealthyaddiction,yet she spendsherweeklypaycheckonsproutedbreadandchia somethingorother. In agencylife, the ideaof subjectvalue supportsconversationsaroundPRICEof our servicesvsCOST of ourservices.Costisdefinedasthe time (ie,hoursorlabor) necessarytocomplete aparticular service¡ª¡°theinputs.¡± Price,onthe otherhand,isthe amount of moneyor goodsexchangedfor something(anitemorservice). Conversationsgroundedinprice take intoconsiderationinputsas well asoutputs,andideally,outcomes¡ªwhichhave the greatestvaluetoourclients,andthus provide abetterplatformfordiscussingandnegotiatingfinancials.Since everyclientisdifferent, and theirneedsand prioritiesfluctuate,pricingconversationsare more customizedtoourclients¡¯ businessandinterests. 4. Choice matters. Wouldyoushop at a store¡ªwhethervirtual orbrick-and-mortar¡ªthatsold only one size,style, orcolorof something?Uh,no.Do theyevenmake the dreaded¡°0¡± size anymore (One Size FitsAll)?Bythe way,have youbeenina supermarket cereal aisle lately?It¡¯s dizzying. People likechoice,andwhilewe are sometimesloathetoadmitit,ourclientsare people.We know the range of servicesandmaterialswe canprovide andproduce forthem;we do iton a dailybasis. So whydo we usually provide justone proposalwithone dollaramountassociatedwithit? We knowclientslike the powerof rejection.It¡¯swhywe like toshow more creative conceptsvsless¡ª evenoneswe don¡¯tparticularlylike. We proactivelygiveourclients somethingtohate/throwout. We needtotake the ¡°Olympicmedal approach¡±withourpricingproposals, offeringbronze,silver, and goldlevelsof proposalsthatreflect increasingdegreesoramountsof servicesprovided.This allows ourclients toretainthe powerof rejection¡ªthrowingoutthe highestproposal,orfine- tuningthe servicesthatare specified¡ªyetkeepsthe Agencyinthe driverseat andupholds our value. ¡°Most people don¡¯t know what they want until they see it in context.¡±1 A good rule of thumb,accordingto the workshopfacilitators,isto make the proposal youwantthe clienttoselect the middle option. Throughinteractive exercisesthe workshopmoderatorsidentifiedparametersthatshouldinforma pricingproposal andthenhad uswork ingroupsto developdifferentproposal rangestomeeta clientrequestforservices. Again,thisreinforcedthatthe conceptspresentedinthe sessionwere not justabstract philosophical mumbojumbo,buthadpractical,and ¡°implementable¡±, value. 5. The responsibility of pricing proposals and negotiations should never rest on one person. Rick BrookrecommendedcreatingaPricingCouncil tosupportanAgency-developedPricing Strategy,and to reviewandapprove all clientproposalsbefore theyare presentedtoa client.If and whena clientchallengesaproposal ordemandsitbe reducedwithoutcommensurate reduction inservicesprovided,the PricingCouncil canbe calledintohelpdefendthe proposal and negotiate onthe Agency¡¯sbehalf.Asanaccountperson, I findthisidealaudableforits abilitytoreduce the pressure onthe ownersof the clientrelationship; those of usinaccount servicesknowhowdifficultitcanbe to maintainastrong workingclientrelationshipinthe midst of financial stressandtension.Beingable tosay¡°I¡¯ll getbackto you afterconsultingmyPricing Council¡±can be freeinginitsabilitytopuntthe powerandtherefore a key financial decision,to a higherorder,while maintainingthe integrityof the clientrelationship.
Clientnegotiations,especiallyaroundbudgetarymattersandpricing,canbe one of the mostsensitive components of ourjob,particularlyforthose of us outside of the finance department.We focusso heavilyonthe workandpleasingourclientswith award-winningcreativeandintellectuallycaptivating contentthat itcan be awkwardto broach financial proposalsandnegotiationsthat,bynature,mustbe devoidof anyemotional elementtobe diplomaticandproductive.The Accordworkshopacknowledged that challenge,butmore important, focusedonaddressingithead-on,inaroomful of seniorleaders across all WPPagenciesrepresentingavarietyof areasof expertise,all sharingsimilarconcernsand challenges. Iamgrateful tohave had the opportunitytoattendthe sessionsandto have beenoffered simple solutions thatcanbe immediatelyappliedtoourdailyclientbusiness. 1 Dan Ariely. PredictablyIrrational(The Hidden Forcesthat Shape our Decisions).

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workshop article CLEAN

  • 1. Tara Bernardino,MSc Vice President,ManagementSupervisor SudlerNew York A Brief Synopsis of a WPP Accord Client Pricing andNegotiationWorkshop For What it¡¯s Worth¡­. A Workshop Worth its Salt Whenwas the lasttime youattendeda workshoportrainingsessionthatreallyfeltworth the volume of unopenedemailandlossof billable worktime? We oftenspendworkshopscheckingourphones,witha growinglevel of anxietyaboutwhatishappeningbackatthe ranch that we cannot immediatelyattend to¡­combinedwiththe periodicsneakpeekatthe agendatosee whenthe nextcoffee breakis,and prayingthat someone refilledthe Splenda (nojudgment). RecentlyIwasinvitedtoattenda workshop hosted byRickBrook,NickFord,and Tom Kinnairdaspart of the WPP Accord Program, designedto¡°bringseniorpeople togetherfromall of the WPPcompaniesto discusscommonbusinessissuesandtohelpeachotherfindsolutions.¡±The somewhatgeneral title beliedthe verypertinentcontent¡ªclientpricingandscope negotiations,facing procurementwith confidence,andunleashingandsharpeningskillstosuccessfullysell inbusinessforwhatitis worth to the clientandthe Agency,vsthe cost. WE HAVE WORTH?!What a concept.We aren¡¯tjust hamsterson a wheel mannedbyan oldcrone feedingnickelsintothe coinslot¡­ While admittedlythe barmayhave beensetratherlow in mycynical mind,thisturnedoutto be one of the bestworkshopsIhave everattended. Why?Because of the simplicityandcandidnature of the session. Seemingly obviousprinciples wererelevantly appliedtothe pricingchallengeswe face dailyin our clientinteractions. Some examples of these basicconceptsare below: 1. You will never be paid more than you think you are worth. So true!Andnot onlyrelevant to clientfinances.One of the reasonsthisworkshopreallystuckwithme forseveral weeksafter it tookplace wasbecause muchof the contentwas applicable tolife outsideof the office.If I don¡¯tthinkI¡¯mwortha promotionora raise,whythe heckshouldanyone else? 2. Don¡¯t give it away for free. Why do we thinkwe have to lowball ourfeesinordertosell in business?Of course clientswill sayyestolow(er) prices¡ªwhenwasthe lasttime youtolda store clerkthat youdidn¡¯twantthe sale price?! But if we keepundercuttingourprices,the benchmarkdropslowerandlower.The whole conceptof a¡°onetime¡±deal ordiscountdoesn¡¯t workwithclients.Theyhave selectiveandshort-termmemories. The ridiculouslylow costyou agreedto outof fearof notgettingthe business,justpigeonholedyouintothe ¡°momandpop¡± sweatshopcategory. The waythisappliestoourpersonal livesneeds noexplanation.Ladies¡ª yes,I¡¯mtalkingtoyou. 3. Value is subjective. The same item will have different value to different people.¡± Thisis the classyversionof ¡°Oneman¡¯sjunkis anotherman¡¯streasure.¡± Iwill paymore fora good cup of coffee thanIwill fora meal.A yoga guru friend of mine thinksthisisawaste of moneythat
  • 2. feedsanunhealthyaddiction,yet she spendsherweeklypaycheckonsproutedbreadandchia somethingorother. In agencylife, the ideaof subjectvalue supportsconversationsaroundPRICEof our servicesvsCOST of ourservices.Costisdefinedasthe time (ie,hoursorlabor) necessarytocomplete aparticular service¡ª¡°theinputs.¡± Price,onthe otherhand,isthe amount of moneyor goodsexchangedfor something(anitemorservice). Conversationsgroundedinprice take intoconsiderationinputsas well asoutputs,andideally,outcomes¡ªwhichhave the greatestvaluetoourclients,andthus provide abetterplatformfordiscussingandnegotiatingfinancials.Since everyclientisdifferent, and theirneedsand prioritiesfluctuate,pricingconversationsare more customizedtoourclients¡¯ businessandinterests. 4. Choice matters. Wouldyoushop at a store¡ªwhethervirtual orbrick-and-mortar¡ªthatsold only one size,style, orcolorof something?Uh,no.Do theyevenmake the dreaded¡°0¡± size anymore (One Size FitsAll)?Bythe way,have youbeenina supermarket cereal aisle lately?It¡¯s dizzying. People likechoice,andwhilewe are sometimesloathetoadmitit,ourclientsare people.We know the range of servicesandmaterialswe canprovide andproduce forthem;we do iton a dailybasis. So whydo we usually provide justone proposalwithone dollaramountassociatedwithit? We knowclientslike the powerof rejection.It¡¯swhywe like toshow more creative conceptsvsless¡ª evenoneswe don¡¯tparticularlylike. We proactivelygiveourclients somethingtohate/throwout. We needtotake the ¡°Olympicmedal approach¡±withourpricingproposals, offeringbronze,silver, and goldlevelsof proposalsthatreflect increasingdegreesoramountsof servicesprovided.This allows ourclients toretainthe powerof rejection¡ªthrowingoutthe highestproposal,orfine- tuningthe servicesthatare specified¡ªyetkeepsthe Agencyinthe driverseat andupholds our value. ¡°Most people don¡¯t know what they want until they see it in context.¡±1 A good rule of thumb,accordingto the workshopfacilitators,isto make the proposal youwantthe clienttoselect the middle option. Throughinteractive exercisesthe workshopmoderatorsidentifiedparametersthatshouldinforma pricingproposal andthenhad uswork ingroupsto developdifferentproposal rangestomeeta clientrequestforservices. Again,thisreinforcedthatthe conceptspresentedinthe sessionwere not justabstract philosophical mumbojumbo,buthadpractical,and ¡°implementable¡±, value. 5. The responsibility of pricing proposals and negotiations should never rest on one person. Rick BrookrecommendedcreatingaPricingCouncil tosupportanAgency-developedPricing Strategy,and to reviewandapprove all clientproposalsbefore theyare presentedtoa client.If and whena clientchallengesaproposal ordemandsitbe reducedwithoutcommensurate reduction inservicesprovided,the PricingCouncil canbe calledintohelpdefendthe proposal and negotiate onthe Agency¡¯sbehalf.Asanaccountperson, I findthisidealaudableforits abilitytoreduce the pressure onthe ownersof the clientrelationship; those of usinaccount servicesknowhowdifficultitcanbe to maintainastrong workingclientrelationshipinthe midst of financial stressandtension.Beingable tosay¡°I¡¯ll getbackto you afterconsultingmyPricing Council¡±can be freeinginitsabilitytopuntthe powerandtherefore a key financial decision,to a higherorder,while maintainingthe integrityof the clientrelationship.
  • 3. Clientnegotiations,especiallyaroundbudgetarymattersandpricing,canbe one of the mostsensitive components of ourjob,particularlyforthose of us outside of the finance department.We focusso heavilyonthe workandpleasingourclientswith award-winningcreativeandintellectuallycaptivating contentthat itcan be awkwardto broach financial proposalsandnegotiationsthat,bynature,mustbe devoidof anyemotional elementtobe diplomaticandproductive.The Accordworkshopacknowledged that challenge,butmore important, focusedonaddressingithead-on,inaroomful of seniorleaders across all WPPagenciesrepresentingavarietyof areasof expertise,all sharingsimilarconcernsand challenges. Iamgrateful tohave had the opportunitytoattendthe sessionsandto have beenoffered simple solutions thatcanbe immediatelyappliedtoourdailyclientbusiness. 1 Dan Ariely. PredictablyIrrational(The Hidden Forcesthat Shape our Decisions).