A new contract yields an additional 4% in rebates

Situation 

The client felt unhappy in their relationship with their media agency. The contract was written by the agency and felt restrictive and opaque to the client. This, coupled with increasing digital investment, meant that the client needed certainty of leading best-practice terms to prevent the relationship turning sour.

 

Obstacle

Without detailed knowledge of industry best practice and what they could expect the client was at an information deficit in the conversation. Coupled with this the the media agency used the clients’ lack of knowledge in specific best practices to stall any renegotiation.

 

Action

Fuel consultants provided the credibility and knowledge, subsequently the agency engaged and agreed to negotiate a new contract. Fuel enabled the client to develop a completely new contract based on industry best practice, encompassing transparency clauses, right to audit, and digital & programmatic across multiple markets. We provided ‘in-room’ support during negotiations with the agency legal and commercial teams and supported the client through many challenges as they negotiated with the agency holding group for value.

 

 

Results

 A client that was confident in the fidelity of their contract, with significant transparency upsides, yielding an additional 4% in rebates per annum. The agency rapport was also significantly improved as the new contract re-injected a feeling of trust into the relationship.

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