Quenzel Marketing Agency Pricing

100% Pricing Transparency

We believe pricing transparency makes for great clients relationships.

For each marketing assignment, clients receive an action plan identifying the specific steps to implement the marketing effort, a detailed breakout of the agency time to provide the services, and the cost for the agency’s time.

Clients pre-approve all costs before the agency starts the project, so there are no surprises when the bill arrives.

The Agency Business & Our Operating Profit.

The agency business is a service industry that operates under conditions of unusual risk and uncertainty. Based on the Association of National Advertisers, Inc. (ANA) and the European Association of Advertising Agencies (EAAA), the consensus is that a 15% – 25% operating profit, as a percentage of gross revenue, is fair agency profitability. A 15% – 25% operating profit is in line with comparable businesses in the service industry, such as lawyers, contractors and accountants.

In line with the operating profits of those comparable businesses in the marketing communication services industry, Our agency targets business relationships that will provide the agency a 20% operating profit on gross revenue.

We provide a number of simple solutions for compensating the agency for its professional advice and services. As with any mutually successful and long-lasting business relationship, we believe that the best solution is the one that best meets the needs of both the client and agency.

Whichever compensation system the client and agency agree upon, the Engagement for Agency Services should include five key components in order for the relationship to flourish. Below are the five key components we seek in any Engagement for Agency Services:

1. The agency must provide professional-level (data-driven and fact-based) marketing communications advice and services to the client.
2. The agency should be fairly compensated for its time and expertise.
3. The practice of estimating all client’s costs for pre-approval, the client cost approval procedure, the invoicing of client costs, and the agency’s compensation for providing the planning, creative, production, implementation and metrics tracking services required to deliver the desired business results should be simple to understand, administer and report.
4. The Engagement for Agency Services should provide for both client and agency performance incentives.
5. The Engagement for Agency Services should be reviewed periodically.

Clients usually know how much they can invest in various marketing communication efforts like branding, advertising, website marketing, or digital marketing, and it’s usually quite easy to determine the costs for such services.

However, when it comes to determining how much they need to spend on the supporting agency services necessary to deliver the planning, creative, production, implementation and metrics tracking required to execute those marketing communication services; the picture can get a little fuzzy because of  the  variety of factors involved.

Quenzel Marketing successfully works with a variety of clients, in a variety of industry sectors, under a variety of compensation arrangements for the Engagement for Agency Services, including:

1. Hourly Rate Model: For a basic transactional relationship (pay-as-you-go, no client monthly minimum guarantee of hours/work) clients can expect to pay an hourly rate of $125.00 to $150.00 for marketing communication’s advice (customer acquisition marketing, customer optimization marketing, customer retention marketing, customer loyalty marketing) and marketing communication services (marketing, branding, advertising, website design and development, website marketing, or digital marketing); based on the traditional 20% rate of return for professional services firms like marketing agencies.
2. Standard Agency Commission Model: For providing a full-level of standard production and media management services (planning, negotiating, purchasing, trafficking, billing reconciliation, invoicing and payment); agency receives the standard 15% commission on production charges and media management.
3. Reduced Agency Commission Model: For providing less than a full-level of standard production and media management services, agency receives less than the standard 15% commission on production charges and media management.
4. Fixed Monthly Fee Model: For providing a predetermined level of marketing communication’s advice (customer acquisition marketing, customer optimization marketing, customer retention marketing, customer loyalty marketing) and marketing communication services (marketing, branding, advertising, website design and development, website marketing, or digital marketing); agency receives a predetermined, fixed monthly fee for a specific time period, usually a year.

AGENCY SERVICES FEE AND AGENCY REIMBURSABLE COSTS

Agency Services Fee:

1. Brand’s costs for Agency Services shall be subject to Brand’s pre-authorization.
2. Agency will estimate Brand’s costs for Agency Services before initiating activity or incurring any expenses on Brand’s behalf.
3. Brand will pre-authorize its costs for Agency Services by providing written approval to Agency; before Agency initiates any activity or incurs any expenses on Brand’s behalf.
4. For authorized Agency Services, Brand will pay Agency a fee of and agreed upon amount (“Agency Services Fee”).

Agency Reimbursable Expenses:

1. Brand’s costs for Agency Reimbursable Expenses shall be subject to Brand’s pre-authorization.
2. Agency will estimate Brand’s costs for Agency Reimbursable Expenses before initiating activity or incurring expenses on behalf of
3. Brand will pre-authorize its costs for Agency Reimbursable Expenses by providing written approval to Agency; before Agency initiates any activity or incurs any expenses on Brand’s behalf.
4. For authorized Agency Reimbursable Expenses, Brand will pay Agency the total amount pre-authorized by Brand.
5. Agency shall retain its commissions on commissionable Agency Reimbursable Expenses offered by such suppliers to accredited marketing agencies. For non-commissionable Agency Reimbursable Expenses, Agency may apply a mark-up.

BILLING AND PAYMENTS.

1. Agency shall invoice Brand any authorized Agency Services Fee and Agency Reimbursable Expenses at the beginning of each month.
2. The Agency shall submit invoices to Brand in an itemized format, along with a copy of any pre-authorized cost estimates or cost authorizations.
3. For vendors that require prepayment (e.g. U.S. Postal Service, Google Pay-Per-Click, etc.); Brand shall pay Agency in full prior to Agency implementing any efforts with such vendors on behalf of
4. Agency shall credit any rate or billing adjustments from suppliers to Brand on the next following regular invoice date or as soon as otherwise practical.
5. Brand shall pay Agency in full within 15 days of Agency’s invoice date.
6. Brand is responsible for any late fees or interest penalties on authorized Agency Reimbursable Costs, incurred by Agency, due to Brand’s delinquent payment to Agency.
7. If Brand’s account remains unpaid after a 30-day period, Brand will pay Agency interest at the rate of one and one-half percent (1.5%) per month.
   Agency may suspend Agency Services if Brand’s account becomes over 30 days past due.
8. In the event that payment is rendered to Agency by a credit card, there are no refunds permitted. In the event of a dispute, Agency has ninety (90) days from receipt of such notification to remedy same.

DEFAULT.

1. Brand shall be in default hereunder (i) for failure to timely pay all invoices and/or (ii) if Brand becomes the subject of any voluntary or involuntary bankruptcy, receivership or other insolvency proceedings or becomes insolvent.
2. Agency shall be in default hereunder if Agency fails to provide Agency Services as detailed in this In the event of Agency’s default hereunder, Brand shall provide written notification to Agency and Agency shall have ninety (90) days from receipt of such notification to remedy same.