The podcast discusses the trend of service providers trying to raise prices by appearing more 'strategic', losing work to off-shore teams and AI. Topics include the evolution of strategy in creative industries, global workforce shifts, adapting strategies for success in changing markets, and navigating industry disruption and innovation.
Many firms are overemphasizing strategy in pricing, leading to losing work to competitors.
Offshoring and AI are reducing costs in creative industries, emphasizing the importance of competitive labor and strategic adaptation.
Deep dives
Questioning the Value of Strategy in Pricing
The podcast explores the idea of questioning the value of strategy in pricing for creative services. By reflecting on past advice and experiences, the speakers discuss how the focus on strategy may have led to increased prices for basic services like design and development. They highlight the need to reevaluate the importance of strategy and how firms may be overemphasizing it, leading to higher costs for clients.
Impact of Offshoring and AI on Creative Industries
The episode delves into the impact of offshoring and AI on creative industries, particularly in reducing costs and influencing the way services are offered. The speakers draw attention to the trend of moving services offshore to countries like Eastern Europe and Latin America, emphasizing the competitive advantage gained from cost-effective labor. They also discuss how AI is driving down costs and reshaping operational strategies for creative firms.
Positioning and Adaptation in a Changing Market
The discussion shifts towards the importance of positioning and adaptation in response to market changes. The speakers stress the need for firms to redefine their positioning, focusing on solving specific client problems rather than being generalized service providers. They emphasize the necessity of taking a strategic approach in pricing and operations to maintain profitability and competitiveness amidst evolving industry dynamics.
Blair thinks too many design firms and other service providers are trying too hard to raise prices by presenting themselves as more “strategic.” Both he and David see these agencies losing more and more work to competitors moving to off-shore teams and AI centered services.