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: 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|