10 reasons why clients must include a budget in an RFP

The COVID-19 pandemic has undoubtedly put a strain on the finances of companies of all sizes, and with job losses and salary sacrifices commonplace, every penny spent is rightfully being scrutinised.

The debate about whether prospective clients should include budgets in initial requests for proposals (RFPs) is not a new one but remains an issue in the industry.

In our experience, including a budget is vital to ensure the organisation is able to find an agency or individual that best suits their needs.

Here are our top 10 reasons why clients must include a budget in their RFPs.

1. Show that you are serious about investing in PR

RFPs that do not include a budget can feel half-hearted and suggest the client has not spent sufficient time researching what they are looking for from a PR agency.

2. Budgets show prospective clients what is or is not realistic

Budgets allow PR agencies to see what will be feasible in the timescale and whether it is aligned with the scope of work. Time will not be wasted in the creation of a proposal that is way beyond what the client is expecting in terms of fees and expenses.

3. Make it easier to evaluate proposals

If there is no specified budget, the client will most likely receive proposals that vary considerably in terms of costs. By providing a budget, you can see what agencies will provide within specific parameters.

4. You will attract better quality consultancies

Businesses that aren’t open about their budget often evaluate proposals based on cost and can end up attracting low-quality firms to respond to an RFP. The process then becomes a race to the bottom.

5. It helps remove the guesswork for clients

Every budget is different and agencies may undersell their offering if they do not feel the prospective client would have sufficient funds. You may not get a true reflection of which agency best suits your organisation.

6. Positive first impressions

RFPs are first impressions that businesses give to agencies. Agencies want long-term collaborative relationships and if they don’t see that desire in your RFP, they’ll overlook you and move on.

7. Agencies aren’t looking to rip you off

Reasonable agencies aren’t going to fill your budget or exceed it purposely. They are looking to find out what your expectations are, and if they can deliver them.

8. Avoid time wasting

A lot of agencies use budgets to determine if they can deliver accordingly, so if they decline it will save you valuable time.

9. Loyalty

It is vital to research consultancies you may contact for a proposal. Consultancies with long-term clients tend to be more careful with budgets and give value for the services they provide.

10. Measuring the success of PR activity

A clear budget will help you measure the project's success. Approaching business ventures without clear expectations or goals is a good way to waste your money and effort.