When marketing services are purchased, a clever combination of price and quantity levers has proven to be effective in order to get the desired improvements in terms of results. Their effects are illustrated below using the examples of procuring two marketing services – print products (such as brochures or flyers) and events.
 
Strategy 1: Volume focus
One effective strategy is to focus on the volume. This starts by developing a company-wide pool of suppliers. If the number of suppliers is reduced and requirements are bundled, the buyers' negotiating power is increased. It is also possible to achieve additional savings by arranging kick-backs (volume discounts).
 
Strategy 2: Price benchmarking
Often departments within a company buy the same or similar marketing services and products – but at different prices. With regular internal price comparisons companies can realize quick wins. Other savings are possible through external price comparisons via tenders.
 
Strategy 3: Optimizing specifications
In optimizing specifications, requirements specifications are reviewed in detail and are then revised. For example, in the print area the number of different formats such as paper types or gram weight can be reduced. It is also useful to compile specifications for recurring requirements that are easy to specify. They highlight creative services, such as the design of a brochure, as well as non-creative services like electronic image processing in prepress services.
If a company has optimized its specifications, it can compare and bundle its requirements better.
 
By introducing specifications in the event area – split into creative, sales-related, and project management services – it is possible to design cost structures more transparently.
 
Strategy 4: Optimizing the entire procurement chain
More savings can be achieved by optimizing processes on an IT basis. This includes, for example, the use of special tools, to bundle small orders. It can also be useful to include the price structures of upstream suppliers. For instance, companies can bundle their orders in the area of "job printing" such as business cards and letterheads by setting up an ordering platform. By doing this, several small orders which at first appear unattractive on their own become more attractive packages for which more favorable purchasing prices can be negotiated. If the company, like the, also buys its paper directly from the producer and then provides it to the printer, it will be able to achieve further savings.
 
Strategy 5: Quantity lever
If a company can practically reduce the quantity of its orders, it should make use of this possibility. After all, this lever can also produce significant savings. In the print area, for example, it is possible to review the purchase order quantities of the print items. You can generally reduce the quantities at least for some of them and thus achieve further savings.
In the event area you can reduce quantities by focusing and prioritizing events. You should pay special attention to the small events, as it is especially these apparently less relevant events that often get out of control in terms of costs. You should already focus when drafting the budgets.
 
 
Author
Dr. Bernhard H. Höveler
Beratungsgesellschaft Höveler + Nold Consulting GmbH, Düsseldorf
http://www.hnc-network.com