The P Word
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The P word we’re talking about today is PROFIT, and it’s THE word of 2021. I write this on the last day of 1H and we are halfway through this rebound and recovery year. Are YOU turning a profit yet this year? Have you made it back to black? Are you where you thought you’d be? We stopped making predictions for our company last fall. We had to! (NOTE: we DID make the commitment that we would not fold no matter what, and we stuck to it!)
In the absence of much visibility into the future, though, one thing became crystal clear: we must - as an industry - come together to shamelessly, fiercely and bravely go after what is rightly ours after a year of so much loss and that, my friends, is PROFIT. The word profit has been a dirty word for as long as we’ve all been in business but certainly decades and centuries before us. But I argue there is honor in this transparency to recover, prosper and thrive so that our clients may in turn do the same. We derive incredible joy and satisfaction when we successfully contribute to our own and our clients' bottom line. You might say we get paid to do what we love. We hope you do too!
When I’m talking about profit, though, I want to make several points - and all of these apply to you, my peers and colleagues in the experiences and events industry, whether or not you’re at an agency, a DMC or part of the brand team.
The industry took a serious beating during the worst of the pandemic, and well into the aftermath, so if you are still here and standing, you have what it takes. You are worth your weight in gold. What you DO is invaluable, because it produces results. If it didn’t, you wouldn’t be here now. Make sure you get the budgets you need to create the experience you know will drive business for your company. You now have the proof to present your case to decision-makers because you’ve been doing it for the last eighteen months. Do not personally settle for anything less than what you need to do your job well and honorably. Walk away if you feel you are undervalued or if you are not on the same page about the value you bring to a client or organization. There’s a better fit for you both elsewhere.
Please do us all a favor and do not undercut your competitors by discounting. This is very tempting, as budgets are still building back up and we’re all digging out of a deficit. But try to remember that all boats rise with the tide, and the only way we are going to get back to pre-pandemic levels is by helping each other out in this way. We have an opportunity to band together and right-size how other industries see and value us. Charge what you’re worth and do not put yourself or your services on “sale”. Otherwise, we become a commodity.
In the same vein, price reasonably and transparently. This should speak for itself, but to put it simply, respect the market value for goods and services and do not take advantage of clients and customers who don’t know better. We believe there’s enough to go around. It’s ok to make a profit. Your clients expect you to. After all, they are in business too. Just do the right thing and stay honest.
Understand, too, that if you’re going to be charging more than you have before, you MUST deliver (or overdeliver if you are moved to do so). Clients expect correlating excellence, if not more, and if the quality is lackluster or falls short, this erodes your credibility and equity and reflects poorly on the industry.
Use your well-deserved and earned PROFIT to better your game. Train your team, hire more skilled talent (yes, this is more expensive, but you get what you pay for, and so do your clients!) and keep your promise to continue to deliver a quality product. Contribute to the virtuous cycle and I promise you will see a return.
We are thrilled that live events are coming back and see this as an opportunity to create a fresh new face for our industry - one that establishes a deeper credibility for the good work we do to grow our clients’ businesses and strengthen brand relationships. Do yourselves and your clients proud by stepping up, commanding a fair price that includes a healthy (not weak or meager) profit and deliver on what you’re charging good money for. We ALL win that way!
Need some strategic insight for your next brand activation? We’d love to hear from you.
