PR Council

Reference Guide

Margin DefenseIdeas Worth Considering for 2027

Clients are looking for more value from every agency dollar — while the cost of delivering the work continues to rise. AI is adding a new dimension: clients may expect “efficiency savings,” even as firms absorb new costs for tools, tokens, governance, and training. But AI is only one source of margin pressure. Pricing, procurement, scope creep, payment terms, staffing, and utilization all shape the economics of an account. The ideas below are worth considering for 2027; use your judgment on what fits each client relationship.

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Pricing & Rate Strategy

  1. 1

    Push 2027 rate increases now, framed around keeping pace with inflation.

  2. 2

    Customize the rationale per client (what the team delivered, how staffing costs rose) rather than sending a blanket notice.

  3. 3

    Open negotiations at your highest price — it’s easier to negotiate down from a strong baseline than up from a weak one.

  4. 4

    If the budget stays flat, tie any incremental work to new rates rather than absorbing it into the existing scope.

  5. 5

    Where you can, shift toward value- or deliverables-based pricing. It caps scope creep by defining the deliverable upfront and removes the need to track and reconcile hours.

  6. 6

    Reconsider the retainer as a financing mechanism rather than a default: build a full project/AOR scope of work, then divide it into monthly payments across the engagement.

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