10 Levers for up to 20 Percent Savings – from Print to Agencies to Media
Tender print requirements regularly – leverage savings of up to 15 percent
After the turbulence of recent years, the paper market has stabilized, making it easier to retender print jobs and allowing printing companies to submit reliable quotes. Significant savings—typically 5 to 15 percent, and occasionally more—are possible, especially for complex products with high production depth (e.g., large catalogs with index tab die-cutting, special bindings, or film lamination). Knowledge of the market and technical expertise help find the right printer with the right machinery and finishing capabilities for the product. If a printer lacks optimal production capabilities and must outsource, it can negatively impact pricing. For complex, large-volume print projects, a competitive tender is almost always worth it.
Tip: Request transparent quotes that break down paper costs, print runs, page counts, printing, finishing, and logistics.
Review agency services regularly – save up to 20 percent
Agencies have increased hourly rates due to inflation. Regular cost comparisons, pitches, or critical contract reviews can yield 10 to 20 percent savings. Hourly rates can be misleading—efficiency matters more (e.g., €100/hour for 30 minutes vs. €70/hour for 60 minutes). The more operational the services (e.g., layout, typesetting, content creation), the easier they are to evaluate and tender. Use project management tools to streamline workflows and reduce errors.
Tip: Request comparison quotes or trial projects to realistically assess effort and efficiency.
Negotiate media buying professionally – create transparency, achieve savings
Media agencies often charge fees as a percentage of the budget, meaning costs rise automatically when ad prices increase—even though the AE commission is rarely applied in full. Regular negotiations, clear service definitions, and tenders can deliver over 10 percent savings, especially for SMEs focusing on trade media, industry portals, or online advertising. Define services precisely: Is the agency only managing the budget, or also providing strategic advice?
Tip: Obtain comparison quotes for campaigns to increase transparency and strengthen negotiating power.
Avoid maverick buying – involve procurement early to cut costs
Departments often purchase independently without procurement expertise, leading to a lack of transparency, missed volume bundling opportunities, and higher costs. A binding procurement policy with thresholds and approval processes ensures early involvement. Benefits include better negotiations, improved contracts (e.g., cancellation terms, payment terms), and cost savings without reducing quality. Joint budgeting also enhances creativity and planning while avoiding expensive ad hoc purchases.
Tip: Implement a procurement policy for all departments so that marketing requirements are handled centrally—processes start earlier and costly last-minute measures are avoided.
Centralize and bundle requirements – break down silos, save 10 to 20 percent
Marketing needs such as promotional items, print products, photo shoots, postage, or trade fair construction are often procured in a decentralized way, keeping volumes small and prices high. Centralized control and bundling by procurement increase negotiating power and reduce unit costs—typically saving 10 to 20 percent. For example, HR, product management, and marketing can combine photo shoots instead of booking them separately. Regular coordination with procurement reveals synergies across printers, promotional product suppliers, and photographers.
Tip: Conduct a needs assessment across departments to identify bundling potential.
Actively manage suppliers – ensure quality, leverage negotiation power
Regularly evaluating marketing service providers, improving briefings, and tracking contract terms can increase quality and reduce unnecessary costs. Keep an eye on contract periods and cancellation deadlines to create negotiation pressure before renewals. Define measurable KPIs (e.g., impressions, conversions, leads, on-time delivery) and link fees to performance to drive improvements. Hold regular performance reviews and make them part of the contract.
Tip: Annual reviews with evaluations help identify weaknesses and launch improvements.
Create transparency in costs and services – standardization prevents surprises
Standardized cost structures, documented agency contracts, and clear service descriptions help uncover and eliminate hidden costs. The more operational a service, the easier it is to clearly define scope, effort, and payment terms. For example, for regular packshots, parameters such as number of images, angles, background removal, retouching, output formats, revision cycles, and handling should be clearly defined—ideally in a rate card. This avoids vague descriptions that create hidden costs, ensures predictable budgets, and allows for better comparisons. Include quantity discounts for bundled shoots.
Tip: A standardized rate card reduces misunderstandings and simplifies tenders.
Implement approval processes – control spontaneous purchases and costs
Last-minute needs are common in marketing and often drive up costs. In most cases, suitable service providers are already available in the supplier pool. A procurement policy with preferred suppliers (a fixed pool of vetted providers) offers flexibility while controlling costs. Digital tools like SAP Ariba can handle requests, selection, and approvals efficiently. Benefits: faster processing, consistent terms, and lower risk.
Tip: Link procurement policies with a preferred supplier pool to maintain flexibility without uncontrolled spending.
Review in-house vs. agency work – make informed make-or-buy decisions
Over time, agencies often take on additional tasks not originally included in the contract—frequently because the department lacks internal capacity. Typical examples include corrections, layouts, copywriting, and social media posts. These extras can add up to substantial costs. Regularly assess whether these tasks should be handled internally, by freelancers, or remain with the agency. For recurring operational tasks, in-house teams or a freelancer pool are often cheaper and faster.
Tip: Document and analyze additional assignments systematically to support sound make-or-buy decisions.
Monitor the market and use benchmarks – challenge price increases effectively
Knowing current market prices and regularly benchmarking helps detect overpayments—especially for agency contracts, media bookings, and printing costs. Without comparisons, unnecessary costs creep in. For example, when price increases for print products are announced, checking the EUWID paper market report can reveal whether—and by how much—paper prices have actually risen (often the largest cost driver). For media bookings, monitor reach or circulation data closely, as these determine actual value. For agencies, benchmarks on staff costs and salaries can provide valuable context.
Tip: Obtain comparison quotes every one to two years to assess market levels and strengthen your negotiating position.
Contact:
Kloepfel Group
Damir Berberovic
Tel.: +49 211 941 984 33 | Email: rendite@kloepfel-consulting.com