: Never Waste a Good Recession
Recent Gauteng Business News
More and more marketers
are exploring opportunities to ‘cash in’ on the recession by seeking
budget savings through upfront payments.
“’Never waste a good recession’ seems to be the watchword of some budget-conscious clients,” says Kadoro managing director Amanda Rogaly. “This means they seek ways to extract advantage from today’s difficult trading conditions.
“Without exception, marketing budgets are under pressure. So it makes sense to ease the strain by looking for savings or getting the most bang for your buck. Of course, one of the biggest potential savings is on cash in advance. Our experience is that it invariably gets suppliers sharpening their pencils.”
Kadoro achieved initial growth on the back of strong implementation skills. To deliver further value-add, Kadoro increasingly invites clients to capitalise on the efficiencies it can deliver during an event’s pre-planning phase, specifically supplier negotiation.
Kadoro demonstrated a net saving of 15.2% on total costs in one recent costing exercise predicated on positive cash-flow for all suppliers.
“In this particular case, the bottom line was either a big cash saving or an additional 100 guests at the function,” notes Amanda. “This is important in the current market as some promotions are ‘multi-tasked’ to reach out to consumers, the client’s own industry and sometimes staff members as well.
“When broad reach is a prime requirement, the ability to address an additional 100 guests in a cost-efficient way can be crucial.”
Cost savings on cash upfront have always been possible with suppliers in the event-marketing sector, but recessionary conditions compound the potential benefit.
“We increasingly advise clients to optimise our negotiating power,” says Amanda. “This might mean giving us as much time as possible for planning and smart procurement, but a cash component is especially persuasive today as banking institutions now apply extremely tight lending criteria and suppliers would prefer not to stretch their lines of credit.”
Potential cost savings are not the only benefit.
Amanda explains: “The cash customer can sometimes jump the queue when there is competition for the services of preferred suppliers in specialist areas.
“Congestion at in-demand venues or around popular dates might magically ease when the negotiation involves cash payments.
“Cash is king and clients running a cash-positive business are wising up to the savings this might entail.”
Business News Sector Tags: Business|