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Per lead costs can range from several tens of euros to hundreds of euros due to the high competition in B2B online marketing and correspondingly high click prices, often in the mid-single-digit euro range.
You must take this into account when pricing and calculating the contribution margin.
The question of the optimal product price for the own offer drives many founders and entrepreneurs around. If you do not have a comparable product or service, i.e. no direct competition, the price is not formed on the market by competition, but primarily through your pricing and thus according to your internal calculation.
When pricing, always keep in mind: The lower the price, the higher the probability that you will sell to problem customers. Because: You can never please customers with a cheap-is-hungry mentality.
Keep away customers who can't afford your products or services or don't value your time.
Generally, B2B prices must be higher than retail because the volume, i.e., the number of customers you can acquire in a month or year, is much lower.
Customers who look at three- or four-digit product prices with their "consumer glasses" quickly consider you overpriced or usurious and are quickly put off by them, but completely disregard the fact that the cost of acquiring a new B2B customer, the so-called customer acquisition cost, e.g. through high online marketing costs for advertisements or a telephone sales team is usually several hundred euros or dollars. At the same time, the number of potential customers is limited, but the number of competitors fighting for the potential deals is not.
The great agency death is a problem that will confront many agencies in the coming years. It is expected that by 2023, more than 80 percent of all agencies will be unable to cover their costs.
This is due to a number of factors, including increasing competition, which means many agencies will have to lower their prices to attract business. It's also possible that some clients who turn to large agencies prefer to buy individual services instead of an expensive, full-service offering, which means agencies also receive less money per job.
In addition, increasing technologies are increasing the use of automated processes, which means that much of the work that used to be done by agencies is now done by computer programs. This results in agencies needing fewer employees to do their work, which in turn results in cost savings.
Another factor driving agency death is the increasing competition from new, very low-cost agencies that are often used to replace existing agencies. These new agencies often offer much better value than many established agencies, making them more popular with clients.
Finally, some agencies may also be affected by the impact of the Covid 19 pandemic, as some industries have suffered a severe downturn that has reduced demand for agency services.
All of these factors contribute to the possibility that many agencies will no longer be viable by 2023 because they will not be able to cover their costs. It is therefore important that agencies actively seek new ways to reduce their costs and develop new revenue streams now in order to survive in an increasingly competitive landscape.
The search for the right agency is often difficult. In the price battle for the best advertising spaces, it is difficult for inexpensive providers to place or appear with your ad among the first ads on the first or second. After all, the cost of a click (PPC: price per click) in Google Ads , formerly known as Google Adwords, can quickly exceed €5 and more.
The first search results or are therefore dominated primarily by providers, which bring high-priced products and services to the woman or man. With given PPC costs, it is a question of the product price or price for an average deal when providing services and the so-called conversion rate, any rate that describes the number of sales -sales - and divided by the number of clicks generated. A cost-covering ad strategy and keyword selection together with constant optimization is necessary to become cost-covering, in the best case profitable.
Therefore, in the interest of better market transparency, it makes sense to include not only those providers listed high up in the list of postential contractors, but also to find agencies and service providers who cannot (yet) afford or do not want to invest a higher share of their revenue in higher click prices.
With our databases, starting with the media & PR database , through the company database to our agency database, we make a contribution to making the market more transparent, creating visibility on for smaller providers and facilitating the choice of the appropriate agency or provider.
For example, you can discover similar providers in your city or region based on keywords and compare them with each other, filter, sort and to be able to put the entries first on a long list, later on a short list.
At the same time, our address databases represent an efficient acquisition tool for companies, agencies and service providers and offer added value in customer acquisition in the B2B sector, more precisely: for directmarketing purposes and for expanding the individual acquisition strategy.