Why ‘price creep’ is always a flawed new business strategy – and what to do instead | The Drum

The new business pitch is imminent. Having spent time considering the needs of the prospective client, you believe that price will be one of their key decision criteria. So where do you nail your price? Trim your rates to secure the business or stick to your guns with the higher rate you actually think you’re worth?

Many agencies quietly admit to using a ‘price-creep’ strategy as a third way. As strategies go, it’s a basic one: put in a cheap price now and then add more services later to boost the revenue once the relationship is underway. There’s no doubt that this has worked in the past and has been considered a valid account acquisition strategy for many agencies.

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Why ‘price creep’ is always a flawed new business strategy – and what to do instead | The Drum.