{"id":2473194,"date":"2017-09-12T00:00:00","date_gmt":"2017-09-12T00:00:00","guid":{"rendered":"https:\/\/prgn.cullencommunications.ie\/potential-customers-that-are-reluctant-to-reveal-their-pr-budget\/"},"modified":"2021-10-06T05:48:39","modified_gmt":"2021-10-06T05:48:39","slug":"potential-customers-that-are-reluctant-to-reveal-their-pr-budget","status":"publish","type":"post","link":"https:\/\/prgn.cullencommunications.ie\/es_es\/pr-tips-trends\/potential-customers-that-are-reluctant-to-reveal-their-pr-budget\/","title":{"rendered":"Potential Customers that are Reluctant to Reveal Their PR Budget"},"content":{"rendered":"

Who Has to Shoot First?<\/h2>\n

by Uwe Schmidt, Industrie-Contact<\/a> (Hamburg, Germany) in co-operation with David Landis, Landis Communications Inc.<\/a> (San Francisco, USA)<\/em><\/p>\n

Sometimes it is cumbersome to get a budget figure from a prospective client. They prefer to keep us in the dark and want us to unveil a number first. It is a bit like the epic duel of Gary Cooper in the legendary western High Noon: \u201cWho shoots first?\u201d I talked about this relevant situation with David Landis, CEO and owner of our American PR partner agency<\/strong> Landis Communications Inc. (LCI) in San Francisco. He has decided never to shoot first.<\/p>\n

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\"David<\/a><\/p>\n

David\u2019s clear statement:<\/p>\n

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\u201cWe don\u2019t submit a proposal if the requester is not ready to tell us what budget they are willing to pay. And they must be able to pay our minimum budget. We do this so both sides do not waste each other\u2019s time.\u201d<\/h4>\n<\/blockquote>\n

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Is he right? In Germany, many times we have provided a proposal after a clear briefing – but later on, we learned that the prospect\u2019s budget was far different from what we thought. And this was not because we were too expensive. Our fees are average, according to the guidelines of the German PR Association<\/strong> DPRG.<\/p>\n

Order a Porsche 911 \u2013 pay a Fiat 500?<\/h3>\n

David had this experience too: \u201cWe spend a lot of time and effort to create a tailored plan of action and cost. In the past, prospects have said to us, \u2018Oh, we were thinking, that campaign should cost much less.\u2019 Sometimes, you don\u2019t even hear from the prospect anymore. We find it ineffective for both sides.\u201d<\/p>\n

So, how does one cope with those who do not want to shoot first? Sometimes it feels like the car dealer, where a customer comes through the door and says, \u2018I want the Porsche 911 sports car. But when he is told the price, he says, \u2018I only have money for a Fiat 500. But how about a deal?\u2019 It does not work like this.<\/p>\n

How is it that some business professionals think PR budgets<\/strong> are completely volatile and negotiable? They are not. Agency owners have a staff and other running costs – like any other serious business has.<\/p>\n

Hands off!<\/h3>\n

As an agency, we do not sell Porsches. Our PR services<\/a> are standard, but we need a signal of seriousness from the potential client. Therefore, PR budgets<\/strong> need to be clarified upfront. Otherwise an agency cannot write a credible concept or proposal. It simply isn\u2019t true that prospects don\u2019t have an idea of budgetary parameters. Within the company, there is a budget for marketing. If not: Hands off! This company will very likely fail, as they do not do serious business planning.<\/p>\n

I asked David how he usually finds out more about his prospects. He told me his team developed a list of simple questions:<\/p>\n