Use cost control. Save your job

Communication World, April, 1995 by Jeffrey Glasserow

I'm a cost consultant and your management has just hired me to audit your department's communication expenses. What am I going to find?

Today's business communicators are all too familiar with the latest rash of corporate buzzwords - reengineering, streamlining and rightsizing. But no matter how cleverly disguised, these words all mean the same thing: cost cutting.

Unfortunately, communicators are frequently the prime targets for these budget-slashing initiatives. Therefore, it's critical for corporate communicators to allocate budgets that generate the most return on investment, and institute business practices that help reduce spending and still achieve their communication goals.

So, rather than standing idly by waiting for the axe to fall, protect your assets - and potentially your job - by proactively looking for opportunities to strike the right balance between increasing communication results and decreasing spending.

Taking control of production costs

As a professional communicator, you're well-versed in public relations and advertising strategies, but how knowledgeable are you about the costs associated with producing publications, video programs and other promotional vehicles?

Generally, communicators tend to rely on the expertise of their agencies and other outside suppliers for guidance in these areas. Unfortunately the nature of this business is caveat emptor - buyer beware! That's why it's imperative that you know as much as or more than your suppliers because they are apt to use methodologies and calculations that benefit them, not necessarily their clients.

For every methodology presented, there are usually two or three more that are perfectly suited for the job. If you explore alternative methodologies, you'll often find substantial cost savings associated with them.

However, how can you evaluate your suppliers' budgets and methodologies to determine if they're in line, or conversely, downright outrageous? By knowing the right questions to ask and establishing a set of cost control business practices that pertain to every communication project you initiate.

Keeping time on your side

Now you're probably wondering, "How can I save money and still produce high-quality, effective communication vehicles?" It's easier than you think. Essentially a handful of key practices can help you balance cost and quality in your communication programs. The first of these is time.

Simply allow for enough time to do the job properly. Production costs are always a factor of time. If you're trying to produce something that normally takes 12 weeks, don't try to complete it in four. Why? Overtime costs. Overtime spending is the most expensive kind of spending. It doesn't buy you anything above and beyond what you would have paid for in a normal time frame.

Careful up-front planning becomes an important factor in the cost-saving process. It alleviates the need for and dependence on overtime. First of all, decide who and what you will need for the project, and exactly when you will need them. In a print production process, this means photographers, models and product prototypes. And in addition, whether your shoot is print or video, make sure there is a product manager or researcher at the session in case the photographer has questions about how it works in actual operation.

Creating a level playing field

Given the fact that you have enough time and planned properly, there are still other ways to save money. Establish rigid bid specifications and make sure that all vendors are bidding against the same set of specifications. Furthermore, if an agency is conducting the bid process for you, confirm what is being bid on your behalf.

Just as important, you need to know how to read bids. It's no secret that agencies are also experiencing downsizings and consolidations, leaving fewer people to handle more world. For this reason, bids are not reviewed as carefully as they might have been in the past.

For example, in printing situations, it's not uncommon to have one printer come back with the job being quoted on as "proofed to satisfaction" and another printer coming back with a bid stipulating only three proofs. Depending on the bid you choose, it could be a costly process.

Granted, it's unlikely that jobs will require more than three proofs but, as you can probably attest, stranger things have happened in corporate environments. For example, if a job requires eight proofs, and it wasn't quoted on as "proofed to satisfaction," those five additional proofs and progs (progressives) could cost two to three times more than the whole job.

Overruns also can pose a threat to the cost saving process. Do you know what you pay for overruns? On your next printing project, check the overrun figure in the bid. Is it two percent or 10 percent? If you're printing a quantity of one million and you agree to a 10-percent overrun, you will be paying for an additional 100,000 pieces. For this reason alone, it pays to scrutinize the fine print.

As a client, you have the right to refuse to pay for overruns, and you also have the right to charge back printers for under-runs. Underruns are less likely, but often more costly, particularly if you are conducting a direct mail campaign. If under-runs occur, make sure your printer is aware and held accountable for any discrepancies.