When we take on a project for a client, everyone needs to be clear as…
In a meeting with an agency client last September, we were discussing scope creep on projects and giving clients stuff for free.
Whilst the agency was keen to stop (what they called) “proper” scope creep, they weren’t too keen to stop giving away small jobs for free. There were concerns over goodwill, client relationships etc. and the admin behind creating change orders and having them approved.
I completely understand all those concerns
We agreed to conduct an experiment over the next three months.
The agency would continue not to charge for small amends, but would keep a record of what they should have charged for each small amend.
At the beginning of January, we had a call to discuss the results.
Over the 3 month period, they had given away £5,365 of small free amends. That equates to over £21,000 over a full year!
That’s £21,000 of cash that could have been available to the agency and the agency owner
What a difference that could make to his lifestyle over the next 12 months!
My question to you is, how much profit is your agency leaking by giving away small free amends?
Why not conduct this experiment for the next three months yourself and find out?