Creative Courage The 3 Biggest Profit Killers In Your Creative Business with Marcel Petitpas
Jun 4, 2025
Marcel Petitpas, a profitability expert who helps agencies boost their profit margins, joins the conversation with valuable insights for creative entrepreneurs. They discuss major pricing pitfalls creatives often face and the three essential levers every agency owner should master. Petitpas reveals why many creatives underprice their services and the real issues behind low profits. He also emphasizes the importance of balancing creativity with financial sustainability, encouraging listeners to understand their business metrics for improved earnings.
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Why Creatives Underprice
- Creatives often underprice due to lack of confidence and poor estimation of required work.
- Incorrect pricing models can cause them to be underpaid relative to the effort involved.
Price to Support Growth
- Charge enough to afford hiring others without financial strain.
- Target a 70% or higher direct delivery margin to maintain healthy profitability.
Understanding True Margins
- Direct delivery margin must cover indirect costs and overheads like software, holidays, and admin.
- Realistic margins should allow 20-30% for overhead and 10-20% for indirect delivery costs.
