by oneafrikan on November 17, 2005
There are an estimated 4500 commercial design agencies in the UK – 56% of which employ less than 5. The research results demonstrate that an average Â£171 million is spent annually on free pitching for a sector that recorded a fee income of just over Â£4billion in 2004/5. The research also showed that 26% of all free pitches/tenders are not awarded due to â€˜change of marketing direction or lack of budget on the part of the client.
There’s an interesting thread running on the cost of pitching for design agencies in the UK, with some real research done to back up the gut feel.
Personally it irks me that someone (who is supposed to be in business too) can expect to get time for free, for a pitch from any agency. It just doesn’t make sense. Some people call it a cost of doing business, and others write it off as a necessary expense in a crowded, commodotised market. This all may be true depending on where you sit, but I think it’s done because people let it happen. I mean, if you call out a plumber to have a look at your plumbing, you pay a call out fee.
Anyways, what do you think – necessary cost of business, or irritating expense?