Marketing agencies tell clients daily to make every dollar work harder. From October 1, it’s time to apply the same discipline to the money moving through the agency itself, writes Jane Grant, chief of B2Bpay.
Changes to card surcharging will reshape how Australian businesses accept card payments. For agencies on tight margins, they’re also a timely prompt to review how they pay suppliers, manage cash flow and extract value from expenses they’re already committed to making.
The question isn’t just “How much can we cut?” It’s “How much more can we get from what we’re already spending?”
What has changed since 1 October
Agencies need to consider both sides of the payment equation.
On the expense side, recurring costs include media, freelancers, production, software, travel, suppliers and professional services. On the revenue side, clients increasingly expect convenient payment options, including cards.
With surcharges changing, ensure invoicing and payment systems are ready and review how major bills are paid.
Key questions agencies should ask: Are our systems ready for the changes? Which major expenses can be paid by credit card? Could payment timing improve cash flow? Are we maximising value from existing business spend? What will accepting card payments cost after 1 October? and Can clients still pay us by card?
Across hundreds or even thousands of transactions, these details can have a meaningful impact.
Look at the money going out
Agency leaders focus on revenue winning clients, growing retainers, launching services. But value can also be created by examining money already leaving the business.
An agency spending $500,000 a year with suppliers shouldn’t only ask whether that spend can be reduced. It should ask how the same spend can deliver more value.
Could payment timing support cash flow? Could administration be simplified? Could the agency earn rewards on expenses it was already going to incur?
Small improvements add up when margins are tight. That’s important when nearly four in five agencies operate below 20 per cent net margins.
Find new ways to earn rewards
This matters as banks adjust rewards programs and cut earn rates on some cards in response to changes in the payments environment.
If agencies are earning fewer points from existing card spend, finding additional legitimate ways to earn rewards can help offset lost value.
Platforms such as B2Bpay allow businesses to pay suppliers, landlords, the ATO and other billers by credit card even when recipients don’t directly accept cards. This can turn expenses traditionally paid by bank transfer into credit-card transactions.
Businesses can earn their existing card rewards alongside B2B Points, convertible one-for-one to Qantas or Velocity Points.
The agency isn’t spending more. It’s extracting more value from unavoidable expenditure.
Keep client payment options open
Getting paid is the other side of the equation.
Agencies often issue substantial invoices for media, production and project work. Making it easy for clients to pay can remove friction and accelerate cash flow.
View the 1 October changes as more than a cost issue. Use them to review the entire payment journey: How do we pay suppliers? How do clients pay us? How long does cash remain in the business? and what value can we generate along the way?
Not every client will choose card, and it won’t always be optimal. The goal is to preserve choice while ensuring systems are ready.
Use 1 October as a payment health check
Review your largest recurring expenses and ask:
What are we spending? When is it due? How are we paying it now? Could we pay it by card? What would that cost? What rewards or benefits could we receive? And would changing the method improve cash flow?
The answer won’t always be to put everything on a credit card. Fees, rewards, terms and cash-flow needs all matter.
But for agencies processing significant volumes of payments, ignoring the card option could mean leaving value on the table.
Get more, not just spend less
Agencies know cutting costs isn’t the same as creating value. Reducing technology, training or headcount may lower expenses, but if those cuts hurt competitiveness, the saving can carry a higher cost.
The same applies to payments.
The smartest agencies won’t necessarily spend the least. They’ll understand where value is created, where it’s lost and where more can be captured.
For an industry that tells clients to make every dollar work harder, October 1 is a timely reminder to apply that discipline to its own spending.
The next revenue opportunity may not be another client. It could be hiding in the expenses you’re already paying.
Written by Jane Grant, chief of B2BPay.
