Christine often gets tapped to contribute to the Forbes Agency Council round-ups. In this one, they asked what obstacles agency owners should be aware of if they want to specialize.
Many agencies develop a specialized focus on one particular industry to position themselves as go-to marketing partners within a specific niche. While this makes sense for some agencies, others can find themselves limited by too intense a focus on one industry, unable to easily generate business outside of that narrow space.
What are the dangers of an agency focusing too much on one industry, and why? This is the question we posed to members of Forbes Agency Council. Below, you can read their expert insights to help you decide whether or not your agency should niche down.
Here’s Christine’s answer:
3. Pricing Pressure From Third Parties
A serious risk often overlooked when specializing is pricing pressure from third parties. Your prices can be higher if you are known and trusted. However, on the flip side, new competitors or market forces can too easily impact the success of your pricing model. The agency industry, in general, is experiencing this right now with the availability of cheaper gig solutions. – Christine Wetzler, Pietryla PR