Procurement Quote by Michael Farmer
““Procurement sets fees based on a negotiated agreement about agency headcounts and costs, and (separately) marketing generates workloads for the agencies. Agencies, who measure client health through profitability measures alone, have no rigorous way to factor in client workloads. TABLE””
About This Quote
The quote highlights a mismatch between procurement pricing and marketing workload generation, and agencies' reliance on profit metrics without accounting for workload intensity.
In simple terms: Procurement and marketing operate separately, causing agencies to miss workload factors when measuring client health.
Align pricing, workload, and profitability metrics.
Themes
Mood
Type
When to use this quote
- budget planning
- service pricing
- agency performance reviews
- client negotiations
Key Concepts
Questions to Reflect On
- How can agencies incorporate workload data into profitability assessments?
- What mechanisms ensure procurement and marketing align on client demands?
Profitability alone may not reflect true service demand or resource strain.