STANDOUT agencies focus on delivered costs

STANDSTILL agencies focus on price
STANDOUT agencies focus on cost

STANDSTILL agencies focus on the price they sell their projects/retainers at. They measure their success by the fees and how many hours they sell.

STANDOUT agencies know that it’s not just how many hours you sell that matters; it’s how many hours it takes you to deliver the work.

Selling a project for £20,000 (200 hours x £100 per hour) is one thing, but if it took you 300 hours to complete then you have a problem. If this happens with every project you undertake then you have a MAJOR problem!

The difference between 200 and 300 hours is 100. That’s called leakage and in this case it’s 50%. The goal is zero or negative leakage. If you’re consistently exceeding 10% leakage, you are not profitable and are either underestimating the hours required or have some major issues in process and delivery management (or both!)

What’s your average leakage percentage?