Our Pitching, Pricing & Negotiation webinar brought together three expert voices from the industry -John Cornwell, Commercial Officer for a number of creative agencies; Tracey Shirtcliff, CEO/Founder, SCOPE Better; and Tia Castagno, CEO/Founder, UnlockYourBlock - to share their thoughts on the challenges of pricing and negotiations and discuss how finance leaders can help their agencies re-evaluate their approach to the pitching process and prepare for a future shaped by value-based pricing and AI.

1.   Shifting the pricing mindset: From time to value

A key concern raised by the panel was the continued reliance on time-based pricing — a model that places an artificial cap on value and limits scalability. As panellists noted, once pricing is tied to hours, agencies constrain their earning potential and open the door to commoditisation.

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Compounding this issue is the tendency of agency teams to adopt a defensive posture during negotiations. Rather than leading conversations with the value of the solution offered, many fall back on justifying costs, headcount or hourly rates. This reactive approach allows procurement to take control, often to the detriment of the agency's margin and positioning.

Practical Approaches:

• Prepare thoroughly. Understand client motivations and align teams internally.
• Offer multiple pricing options to create a discussion about value.
• Trade, don’t discount. Always gaining something in return for any price movement.

• Move from defending costs to discussing the value provided.
• Understand and align with the client's business challenges and underlying needs.
• By understanding these deeper issues, agencies can offer solutions with clear value and frame pricing accordingly.

2.  Pitch preparation

A critical insight from the webinar was that many agencies are still under-preparing for commercial negotiations, particularly during pitches. While creative and strategic work often receives significant focus, pricing and commercial planning are too frequently left until the last minute, a practice the panellists agreed must change.

This lack of planning undermines confidence, weakens negotiation positioning and creates internal misalignment. Our panel suggested planning should include: 

Client research

• Speak directly with multiple client-side stakeholders, if possible.
• Identify individual priorities — a brand director’s definition of value might differ from procurement’s.

Understanding the Client's underlying business needs

• Don’t just respond to surface-level procurement requests.
• Ask what business challenge the client is trying to solve, and align your offer to that.

Role clarity within the pitch team

• Decide in advance who leads which part of the conversation.
• Everyone must understand their role, from relationship manager to financial negotiator.

Pricing scenarios and managing "push-back"

• Prepare more than one pricing model or offer.
• Present options that reflect varying levels of service, scope or outcomes, not just a single figure
• Align internally on the minimum acceptable price, terms or model, and ensure all teams respect it.
• Avoid ‘fake’ thresholds that can later be overruled, as they weaken internal credibility.
• Don't make scoping an afterthought -scoping and commercial modelling need to be treated with equal importance to creative and strategic development from the outset of a pitch.

Aligning internal teams: Bridging the gaps

There was a strong consensus that internal collaboration between commercial, finance and client teams needs to be established early, not retrofitted at the last minute.

• Client leaders often prioritise winning or retaining the account.
• Finance leaders are focused on ensuring profitability and margin.
• Creative and strategy teams want to lead with ideas and innovation.

All three views are valid, but they can be in conflict unless aligned from the outset. The panel emphasised the importance of bringing everyone into the scoping and pricing conversation early, so trade-offs can be openly discussed.

3. Creating a pricing council led by Finance 

Tracey recommended every agency establish a “Pricing Council”, comprising key C-suite members and led by Finance.

Key characteristics of this council would be:

• Cross-Functional: Bringing together finance, commercial, client leads, and leadership to ensure alignment on pricing philosophy.
• Reactive and proactive: The council can respond quickly to market demands (e.g., client expectations around AI efficiencies) and help agencies shift from legacy pricing models to innovative, scalable ones.
• Future-Focused: With the rise of AI and automation, pricing will change dramatically. The council would spearhead adaptation — defending value, shifting models and embedding pricing as a driver of growth rather than a cost recovery tool.

4. Technology & Tools

The discussion around pricing tools and technology highlighted the widespread reliance on outdated, manual tools - primarily Excel spreadsheets -for pricing decisions. Our panel argued that this approach is no longer tenable in a complex agency environment, especially as AI rapidly reshapes workflows and expectations.

Excel is Outdated and Inadequate
90–95% of agencies still rely on spreadsheets for pricing and scoping. These tools:

• Lack version control
• Are labor-intensive and prone to error
• Cannot support scalable or flexible pricing structures (e.g., project-based, output-based or retainers)
• Slow down speed-to-quote and decision-making

Need for a “Single source of truth”
It's important to have integrated platforms that serve as centralised hubs for pricing data and logic. These platforms must support diverse pricing models while enabling consistent, data-driven decisions.

AI-enabled tools offer multi-dimensional value
There's a need for tools that capture both tangible deliverables and intangible value (e.g., strategic input, innovation, access). Tia argued for moving beyond linear time-cost frameworks toward systems that reflect the true business value of agency work.

Value-based pricing requires Tech support
Traditional tools are not built to support value-based pricing. To achieve this shift, agencies must adopt tools that can quantify value as perceived by the client, not just track cost inputs internally.

5. The Impact of AI on pricing and packaging of services

Artificial Intelligence is already reshaping, and will continue to transform, how agencies price their services over the next 12–18 months. The key message: agencies must move fast to redefine pricing models in light of AI-driven efficiencies.

• AI is driving operational and creative efficiencies, significantly reducing the need for billable hours. This alone threatens traditional time-based pricing models.
• Agencies must now monetize AI capabilities, not just use them internally. This includes:
  • Solution enhancers (e.g. faster production)
  • Operations enhancers (e.g. improved allocation, reporting, workflow automation)
  • Packaged AI-led services that reflect both efficiency and innovation
• Tracey predicted agencies will begin to offer “AI-as-a-service” models – recurring revenue models that combine tech solutions with agency expertise, similar to SaaS.
• This shift will require new ways to package, present and price what agencies deliver, focused on outputs, outcomes and proprietary methods.

Suggestions from the panel: 

Start monetising AI capabilities now
Treat AI not just as a tool for internal efficiency, but as a productised service you can charge for.

Develop AI-powered packaged offerings
Bundle AI tools, creative strategy, and delivery into defined service products with clear outcomes, moving away from labour-based models.

Move toward recurring revenue models
Explore subscription-style pricing for ongoing innovation, support or performance-based partnerships, aligning with SaaS-like structures.

Invest in intelligent pricing scenarios
Use AI to build pricing tools that dynamically generate pricing models based on client needs, scope and outcomes, not time spent.

Include Finance early to model profitability
Recurring and outcome-based pricing requires stronger forecasting, finance must be central in scenario planning and model design.

Conclusion

This evolution is fast-moving. Agencies that lead with value, AI innovation and strategic pricing will have a competitive advantage.

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