Pricing Creative Services: Educating Clients on True Value

This conversation with Alicia De Santis, founder of 38th and Kip Studio, reveals a critical, often overlooked, truth about pricing creative services: the inherent conflict between a client's perceived value and the actual cost of delivering high-quality, expert work. De Santis argues that while many clients undervalue marketing and creative offerings, the real challenge lies in an agency's confidence to educate clients and set prices that reflect true value. This insight is crucial for agency owners who struggle with commoditization and fear losing business by charging what they're worth. By understanding the systemic undervaluing of creative work and developing the courage to price accordingly, agencies can build a more sustainable, profitable, and respected business. Those who master this will gain a significant competitive advantage by attracting clients who value expertise and are willing to invest in quality, while simultaneously deterring those who are merely looking for the cheapest option.

The Hidden Cost of "Cheap": Why Creative Services Are Not Negotiable

The digital marketing and creative agency landscape is rife with a fundamental tension: the client's often-limited perception of value versus the expert's understanding of the true cost and complexity involved. Alicia De Santis, with 15 years of experience leading 38th and Kip Studio, highlights this disparity, noting that across developed nations, marketing and creative services are consistently undervalued. This isn't just about a client thinking a logo is easy to draw; it's a systemic issue where clients, trained to negotiate prices for tangible goods or other expert services like legal or plumbing, feel empowered to haggle over creative output. De Santis’s journey from charging $200 for projects to confidently setting higher prices underscores a critical shift: the necessity of educating clients and, more importantly, developing the internal confidence to say "no" or to present a price that might feel uncomfortable but is justified by the value delivered.

This isn't about fear-mongering, but about understanding the downstream consequences of underpricing. When agencies accept low bids, they often attract clients who are not invested in the long-term success of the project or the agency itself. De Santis points to websites as a prime example. New businesses often cut corners, hiring less experienced individuals or friends, only to face disaster when that person disappears, credentials are lost, or critical updates are neglected. The immediate "savings" translate into halted business operations and significant future costs. The core insight here is that the perceived "low price" from competitors often signals a different kind of risk: a lack of expertise, a higher time investment from the client, or a higher probability of failure.

"Folks tend to think that things cost a lot less than they actually do whether that's buying a painting or getting a portrait of your family or a logo or a marketing strategy."

-- Alicia De Santis

The strategy to combat this lies in reframing the conversation. De Santis suggests drawing parallels to other professional services. When a plumber charges $250 for a consultation, it's accepted. When a lawyer does the same, it’s expected. Yet, for creative services, negotiation is the norm. By explaining the value in terms of other, non-negotiable expert services, agencies can begin to shift client perception. This educational approach, coupled with the confidence to decline business that doesn't align with fair pricing, builds a stronger foundation. The implication is that the "dumb ones," as De Santis puts it, who can't grasp this value proposition, are better off being steered toward cheaper alternatives, freeing up the agency to serve clients who understand and respect their expertise. This creates a moat, not through complex technical solutions, but through a disciplined approach to value and pricing.

The Thought Leadership Paradox: Building Trust Through Genuine Education

In the quest for agency growth, thought leadership is often touted as a powerful engine. However, as De Santis and Jason Swenk discuss, the effectiveness of thought leadership hinges on its authenticity and its ability to bridge an actual educational gap, rather than merely serving as clickbait. The critical insight is that poorly executed thought leadership can actively dilute trust. A white paper that offers no new takeaways or fails to address the audience's specific knowledge level can alienate potential clients, making them feel patronized or that their time has been wasted.

The key to successful thought leadership, according to De Santis, lies in a deep understanding of the target audience across four dimensions: motivation, pain points, level of literacy, and communication style. For instance, an agency targeting financial services clients must speak their language, not a jargon-filled marketing dialect. Using overly technical marketing terms with an audience that lacks that specific literacy will instantly create a barrier. Conversely, dumbing down content too much signals a lack of respect and perceived value. Finding that precise level--where the content is educational, empowering, and relevant--is the challenge. This requires empathy and diligent research, moving beyond assumptions to truly understand where the audience stands.

"If you're going to produce thought leadership content as part of a growth or awareness strategy you have got to make sure you understand... what is their level of literacy within what you're talking about."

-- Alicia De Santis

This deep dive into audience understanding is where delayed payoffs create a competitive advantage. While many agencies might churn out generic content, those who invest the time to genuinely educate and connect with their audience build a far more durable form of authority. Swenk emphasizes the long-term power of a podcast, noting that while it takes significant effort and consistency, it builds a loyal audience over time. The "drinking game" made in jest within their mastermind highlights the common resistance to this type of sustained effort. Many members only embrace podcasting after years of hesitation, only to realize its profound impact on building a moat and establishing genuine connection. This isn't about instant virality; it's about consistent, valuable output that gradually earns trust and demonstrates expertise, a strategy that is difficult for competitors focused on short-term gains to replicate. The true value is not in the content itself, but in the relationship it fosters.

The Uniqueness Imperative: Building a Brand Beyond Services

A recurring theme in the conversation is the struggle for agencies to articulate their unique value proposition in a crowded marketplace. The ease with which a podcast can be started belies the difficulty in making it stand out, and this challenge extends to the agency's core identity. Jason Swenk passionately advocates for building personal brands alongside agency brands, citing his own early mistake of defining himself solely by his agency ownership. When that agency was sold, he felt a profound loss of identity. This experience underscores a critical systemic dynamic: individuals often conflate their professional role with their personal identity, making transitions difficult and limiting their perceived value.

The core problem, as both De Santis and Swenk identify, is the fear of being different. In a social environment that often rewards conformity, agency owners hesitate to reveal their unique personality or take unconventional approaches. This fear prevents them from developing a truly distinct brand. Swenk uses the analogy of trying to tickle yourself: it's nearly impossible to generate that sensation internally. Similarly, discovering one's unique value proposition and personality is exceptionally difficult without external input. This is why hiring other brand strategists or agencies, even for established experts, is crucial. They provide the objective perspective needed to identify and articulate what makes an agency or individual stand out.

"It doesn't matter what you do it's like who do you help and what's the outcome."

-- Jason Swenk

The Savannah Bananas baseball team is presented as a prime example of this uniqueness in action. Their unconventional, entertaining approach to the sport has garnered a massive following, far exceeding the appeal of traditional, "boring" professional baseball for many. Swenk argues that agencies should adopt a similar mindset: focus on who they help and the outcome they deliver, rather than simply listing their services. Instead of "we build websites for nonprofits," a more compelling narrative is "we help nonprofits get more members, donors, and volunteers." This shifts the focus from a commoditized service to a tangible, impactful result. Embracing this uniqueness, even if it feels uncomfortable or "silly," is precisely what creates a lasting moat and attracts clients who are looking for more than just a transactional service provider. It requires courage to be different, but the payoff is a brand that resonates deeply and stands apart from the sea of sameness.

Key Action Items

• Immediately: Re-evaluate your agency's pricing structure. Identify services where you consistently undercharge due to perceived client objections.
• Within the next quarter: Develop client education materials that clearly explain the value and cost of your services, using analogies to non-negotiable professions (legal, medical, etc.).
• This quarter: Practice articulating your pricing with confidence. Role-play objections and develop clear, value-based responses.
• Over the next 6-12 months: Identify and actively disengage from clients who consistently undervalue your services or engage in excessive price negotiation. This creates space for better-fit clients.
• Ongoing: Invest in creating authentic thought leadership content that addresses your specific audience's literacy level and pain points, focusing on tangible takeaways.
• This year: Begin building or strengthening your personal brand, distinct from but complementary to your agency's brand, to establish deeper trust and connection.
• 12-18 months payoff: Seek external branding expertise (even if you are a branding agency) to uncover and articulate your unique value proposition and personality, enabling you to stand out authentically.