Why Selling Time Is Killing Your Public Relations Agency

Every PR firm knows the drill. Client says here's my budget. Firm divides by twelve. Monthly retainer, same amount, January through December, whether the work demands it or not. Need a press release? Flat rate. Need ten? Multiply. Need an editor or a videographer? That's by the hour, and one minute is one hour. The pricing isn't creative. It isn't strategic. It's arithmetic dressed up as a business model.And it worked fine, until AI started doing the arithmetic faster. Suddenly teams are twice as productive in half the time, and if you're still selling hours, you're punishing yourself for getting better. Meanwhile, the client's procurement department is happy to keep paying by the hour, because now those hours cost less. So, who's really winning? The firms who don't rethink how they price will be replaced. Not by AI, but by hungrier competitors who already have.Listen For3:42 Why Are PR Firms the Least Creative in Pricing?6:34 Are You Losing Money by Defaulting to Retainers?9:08 How Should Agencies Identify Where They Create the Most Value?12:19 How Do You Avoid the “Bait and Switch” With Senior Talent?15:27 Is AI Killing Hourly Pricing Models for Good?Guest: Blair Enns, Win Without PitchingWebsite | LinkedIn | Podcast 2BobsDavid’s books including Pricing Creativity DougSubstack | Website | LinkedInFarzanaSubstack | Website | LinkedIn Are you a brand with a podcast that needs support? Book a meeting with Doug Downs to talk about it.Apply to be a guest on the podcastConnect with usLinkedIn | X | Instagram | You Tube | Facebook | Threads | Bluesky | PinterestSend us a note about this episode. We'll reply and thank you on a future episodeSupport the show