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|Forum name||Financial Feast|
|Topic subject||Pricing Question|
43, Pricing Question|
Posted by FireIce, Fri Sep-08-06 04:19 PM
I am currently starting a boutique marketing company focusing on two things. The first is finding corporate sponsorships for a variety of sports-related clients. The second is to help young entrepreneurs with marketing (consulting, writing marketing plans, etc.). I already have a large list of prospective clients and I have some pricing questions perhaps someone could help me with.
I understand for sponsorships I will have to be on a commission-only basis at the beginning (to establish credibility and also due to clients budgets).
What is a fair commission to take on getting sponsorships? The sponsors I'm going after will range from $500-100,000.
Second, what is a fair price to charge young entrepreneurs who are starting (or have already established a company) to write a new marketing plan or revise an existing marketing plan?
Thank you so much for your advice and feel free to reach me at David12000@aol.com
45, RE: Pricing Question|
Posted by Penny Ballou, Tue Sep-12-06 12:19 PM
Hi David G,
That's a tough Q to answer. What's your experience for starters?
You're in MO, what's the average cost in your area? Do a competitive analysis to find out then use it to work out your fee.
Minimally you could draft a contract and get paid monthly if client's can't afford your price or 50% now with balance due upon completion. You might also consider some form of a trade-off in services by some clients whose services or products you could use.
You really have to work out what you need per month to operate then work out how many you'd have to secure to break even and make a profit.
46, RE: Pricing Question|
Posted by wwcap1, Fri Sep-15-06 06:26 AM
As to the sponsorships, it shouldn't matter the amount of the sponsorship. I would recommend no less than 15% if not 20% if you're taking on all the costs of obtaining and managing the sponsorship.
As to the marketing plan, you need to consider the complexity of the company first. I would recommend from $1,000 to $1,500 for the average small business (I mean SMALL with 50 employees or less).
Hope this helps.
Capener Consulting, LLC
47, RE: Pricing Question|
Posted by FireIce, Fri Sep-15-06 03:39 PM
Thanks for the advice everyone and keep it coming!
That was right around percentage I was thinking about what most people have recommended to me. Thanks for the quantifying the business plan idea.