The Most Common Agency Pricing Mistakes, With Kristen Kelly

In this episode of The Agency Profit Podcast, Marcel Petitpas and Kristen Kelly discuss common pricing mistakes made by agencies and how to fix them. They cover issues such as pricing based on guesswork, undercharging and over-delivering, ignoring overhead and profit, using the wrong pricing model, not tracking average billable rate (ABR), and the fear of raising prices. The key solution highlighted is pricing with delivery margin in mind, aiming for a 70% or higher direct delivery margin to ensure profitability. They also touch on practical strategies like using $0 change orders and understanding the importance of setting clear expectations and scope management.