Season 9 | Ep 97 | Marcel Petitpas on Agency Pricing Models

Do you have the right billing model? Do you find it hard to navigate the conversation around pricing as an agency owner? There are factors you should consider when looking into a billing model, but ultimately, what needs to be true, no matter the billing method, is ensuring there’s enough gross margin for you to be set up for success.  

In this episode of The Agency Blueprint, I’m joined by Marcel Petitpas, CEO and founder of Parakeeto, a consulting and technology firm dedicated exclusively to helping agencies answer important questions without wasting time on spreadsheets. He shares his perspective on agency billing in the industry today and how to best price services for profitability.  

Listen in to learn how margin pressure on agencies leads to increased specialization and business complexity.  

Key Questions:   

  • [01:10] From a billing perspective, what do you see happening in the industry at the moment? 
  • [05:48] What factors would you advise an agency owner to think about when it comes to their billing model? 
  • [24:17] What would you say to someone concerned about changing their billing model to a value-based model? 

What You’ll Discover: 

  • [01:35] Things that have created margin pressure on agencies leading to increased specialization and business complexity.  
  • [06:03] Factors to consider when deciding the right pricing model in your agency. 
  • [08:02] How your positioning and value can help you assess your risk profile when choosing a pricing model. 
  • [11:00] The tactics to use to navigate the value conversation and get some exposure from the client. 
  • [14:09] How to quantify high and low-risk work and sell the agile method of high-risk work. 
  • [17:37] Understanding the pricing quadrant and how to position and structure a pricing model that benefits you.  
  • [24:39] How to educate yourself and shift your mindset to enable you to change to a value-based model.  

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