PR Firms involvement

[jhaime]

I'm looking to discover more with regards to PR firms involvement within the industry, centering around how the majority of their profits are made.

Usually agencies will take a commission on the wholesale price of an order? however what % are we talking? 15%? Obviously it will fluctuate throughout various firms, but the average? also, do agencies place an introductuary fee on their clients, when they introduce them to a prospective retailer? or secure a sale for their client?

I'm also curious to discover what type of contracts are drawn up between the PR firm & client, and what is to stop the client parting company with the PR firm & taking their contacts list with them?

I also don't entirely understand how agencies make any profit through clients participation in the press (magazines etc), or infact whether they do at all? Obviously you have the stylists & photographers involvement, but who pays for it all, the magazine? the designer? the agency?

I would most appreciate anyones input into this discussion, as I don't entirely understand who makes money where, how much, or whether they do at all.

 

[Lena]

are you talking PR for Press or for buyers?

*Press: hey charge a fixed amount either on a year arrangement (of course it can be for more years, the price goes down) and they dont take percentage from sales. Their job is to communicate their client to Press under a contract, send out lookbooks, communicate and keeping touch with the Press, carry a full line in showroom for stylists , photoshoots etc and to help out with any special press events, launches, openings or parties of the label.
all extra work is added to the 'account'
*Commercial: they can rep by season (or seasons). Usually they take a fixed amount of money every month and a small % on sales or they take a 12-15% on sales with no contract., but if one gets a non-contract arrangement, cannot expect too much from their agency.. best customers get served in the best way

a full PR list never make it to 'client's' hands so there is no way for clients to 'run away' with a list.. the most one can 'run away' with is he few clients which one may be already working with while with a PR company.. some labels even lose their clients if they decide to leave a PR company since as you can understand retailers have a very close collaboration with commercial PR agencies..

as for contracts if one part brakes it there is a 'fine' as in all businesses

agencies and labels , both make money out of this, but the main service is by the PR agency

 

[jhaime]

Hi Lena,

Thankyou so much for your input.

That's interesting from the press side of the equation, do agencies like Blow for example, only make their profits through demanding an agreed fee each month, season etc?

who pays for the photographers/stylists/models? the publication?

 

[softgrey]

even if you take a contgact list with you..
that is just a list of names...
they are not YOUR contacts...
meaning..you have no relationship built with them...
so it's not really that useful...

i mean..
the names and numbers are public info and anyone can get them if they try...
so that is not really the point...
the point is being able to use those contacts to get what you need..
which is really about building relationships...
and if one starts burning bridges early on..
they are missing the point...

 

[Lena]

That's interesting from the press side of the equation, do agencies like Blow for example, only make their profits through demanding an agreed fee each month, season etc?

who pays for the photographers/stylists/models? the publication?

yes, agencies have a list of fees, depending on what their client needs , its usually a made-to-measure situation, sometimes they even charge by the hour for consultation (and good PR is extremely expensive)

Press PR doesnt cover photographers etc fees or advertising campaign costs, this is a completely different section, but under fee, a PR agency can consult on how to have an effective campaign approach.
but the built up of a campaign is usually the job of an advertising agency, which takes on where PR stops

 

[jhaime]

Hi Softgrey, Lena, thankyou for the input.

Soft, surely a retailer is going to want to continue with a designer if their line is a success in their store, regardless if they walk away from their PR representative or not? I know obviously the buyer will deal directly with the agency when negotiating contracts & that it's a great deal more dificult for a designer to go in & negotiate a contract concerning their own line. However, if a designer is selling well on a retail level, then wouldn't the buyer want to establish contact with the designer to continue a working relationship with that line?

Lena, regarding the advertising firms, obviously they have their own copywriters, art/graphic designers etc.. but who foots the bill for photography, styling & modelling? & where does the advertising firm draw its profit from? just the client? or will they sell on whatever they've done to an editor at a publication for a going rate? especially if they have a client who publications are looking to get their hands on?

would showstudio come under the title advertising firm?

I'm just not entirely sure where & how the money crosses, with regards to this relationship between press PR, advertising firms & publications...

 

[Lena]

client (fashion line) plays for everything

*the advertising company (which is NOT PR) is charging for creative and marketing services the fashion label, not the publications
*the fashion label is also paying the adv. campaign if they want a space in a publication