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| À La Carte Publicity Lori Johnston |
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While working in advertising at The News-Press, Vince Modarelli heard the head of a local agency bragging that he occasionally "fired" clients. That was not so long ago, when booming real estate sales and droves of people moving to Southwest Florida fueled business. Some marketing firms were able to pick and choose clients on retainer, the traditional model in which a business pays a monthly or quarterly fee for services. Today, in a rush to reduce costs, many businesses are cutting loose their marketing staff and consultants. Marketing professionals are struggling to adjust, and some are taking a different tack. The economy’s downslide didn’t stop Modarelli from launching Southwest Florida’s first PRstore last May. "Before I went to do this, I explored entering into the traditional model," he says, with five clients But Modarelli saw a market in businesses that are unwilling or unable to pay a retainer. While visiting Charlotte, N.C., he noticed a PRstore, and ended up purchasing a franchise. Businesses are charged for the specific service, such as quarterly newsletters, hourly telemarketing and 400-word press releases. In less than a year, the Bonita Springs store rose to fifth in total sales among the company’s 34 stores, according to fourth quarter 2007 data, and Modarelli anticipates reaching $500,000 in revenue in 2008. The Bonita location has two full-time employees and a part-timer, and Modarelli plans to expand to Sarasota later this year. The "Wha’cha need?" motto displayed behind the counter says it all, Modarelli says. His store has support from a centralized staff of designers, copywriters and other professionals at the company’s North Carolina headquarters. "If I can satisfy you on whatever project it is that you need at this point, you’ll come back," he says. Of its 75 clients, mostly small businesses, 72 percent are repeat customers. Widespread Technologies has used the PRstore on an ongoing basis for months to secure ads, e-newsletters, press releases and more. Lily DeBlieux, its CEO, appreciates the flexibility. "I don’t have this huge commitment. I can just use them as I need to," she says. PRstore isn’t alone in trying to capture clients on an as-needed basis. Sue Huff created a division last year, offering à la carte services in her Naples-based marketing and management consulting firm. Since starting her firm in 1996, she had followed the more traditional model. With eight to 10 clients, typically on retainer with six-month minimum contracts, Huff enjoyed being part of a company’s team, and was included in everything from strategy sessions to Christmas parties. "I didn’t want to do one press release for this guy, and a brochure for [another] guy," says Huff. She sometimes turned away clients seeking help on individual projects. "I thought it would be too scattered," she explains. But last year, a few real estate clients on retainer dropped her services to cut costs. "I thought, ‘Well, how much market is there that we’ve been turning away?’" Huff started offering piecework services, such as writing and distributing press releases, overseeing graphic design and printing projects, coordinating direct-mail campaigns, planning and managing special events and helping create marketing plans. On average, she charges $125 per hour. Two clients on retainer that had considered leaving turned into hourly customers instead. About half of her clients now are on retainer. Others, including nonprofits, small women-owned firms, and larger businesses such as Estero Bay Chevrolet have used the à la carte option. "Instead of having one big dinner party, you’re having a lot of people coming in for coffee and pie," she says. With the help of two part-timers and an independent consultant, Huff is trying to strike the right balance of both, and keeping track of how much time is spent on each project. She admits the retainer setup continues to be the more profitable strategy. "When you have an à la carte client, it’s more stop and go, stop and go," she says. "It’s a lot more expensive for me to get that client, keep that client and bill that client. [There] is a little bit more bookkeeping involved." But Kathy Prutos, owner of Prutos Pub-lic Relations in Naples, says the retainer route remains the best choice for a client seeking to maximize marketing dollars. "I can give better service to my clients when they’re on retainer because I’m constantly speaking about them," she says. Just like their clients, savvy marketers aim for return customers. Some of Modarelli’s clients use PRstore so often that they’ve set up an account with him. Huff anticipates that opening the door to new clients on an hourly basis could lead to some hiring her firm on retainer as their business picks up. "They’re sort of renting us before they buy," she says. |
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