Episode 033: Decommoditizing Your Agency: How To Shift From Vendor to Strategic Partner

 

We’ve all felt it. That slow, creeping sense that clients are treating your agency like one of a hundred interchangeable options. The conversations shift from creative strategy and expertise to line items and hourly rates. Suddenly, instead of being the trusted advisor who shapes their growth, you’re reduced to just another vendor in a race to the bottom. And let’s be real—playing that game is exhausting.

In this episode, we sat down together to unpack one of the most important and overlooked conversations in agency growth: how to stop commoditizing yourself and start standing tall as a differentiated partner. The truth is, most of us have unintentionally played into commoditization. We’ve said yes to the wrong clients. We’ve published laundry lists of “things we can do.” We’ve leaned on generic answers like “culture” or “collaboration” when asked what makes us different. It’s no wonder prospects start to see us as replaceable.

But here’s the empowering part: we have full control to change it. In fact, once you see where you’ve been unintentionally blending in, you can start reframing everything—your positioning, your pricing, even the types of clients you attract—so that you’re viewed as one-of-one, not one-of-many.

Why Commoditization Is So Dangerous

The agency world loves to talk about AI as the existential threat, but Forbes data shows the real risk isn’t technology—it’s commoditization. When you’re seen as interchangeable, clients use price as the only decision lever. That leads to discounting wars, slim margins, and constant churn. And the brutal irony? Research shows the lowest-priced proposal only wins about 10% of the time. Meaning all that discounting you’re tempted to do? It isn’t even working.

Commoditization impacts everything: the types of projects you land, the authority you hold in the room, the longevity of client relationships, even the way your team feels about their work. Executional tasks with razor-thin margins burn people out. Strategic, outcome-driven partnerships energize them. Which agency do you want to be building?

Five Shifts to Decommoditize Your Agency

In the episode, we walk through the exact reframes and practices that separate commodity shops from agencies that command trust and premium pricing:

  1. Niche with confidence. Yes, niching still feels scary for many founders. But when you define a specific audience and solve a clear set of problems, you become magnetic to the right clients. Broad equals forgettable. Specific equals memorable.

  2. Lead with outcomes, not deliverables. Your clients aren’t buying “10 social posts” or “a PR strategy.” They’re buying visibility, leads, credibility, and growth. Position your offers around transformation, not tasks.

  3. Develop proprietary IP and frameworks. Even simple branded processes give clients confidence. When you present a proven recipe, they stop dictating how you should work and start trusting your expertise. Flexibility is fine—losing authority isn’t.

  4. Think like a partner, not a vendor. Step outside the silo of the exact project you’re hired for. Show you understand how your piece of work fits into their bigger picture. Partners see connections. Vendors just execute.

  5. Build thought leadership. Call it what you want (we joked on the show that “thought leader” needs a rebrand), but the agencies winning today are publishing perspectives, hosting roundtables, appearing on podcasts, and sharing their point of view. That visibility attracts aligned clients who already “get” you before the sales call.

The Empowerment Mindset

At the heart of this conversation is a mindset shift. Commoditization is not inevitable. It’s a choice—one you can stop making. Every time you hold firm on your pricing, protect the integrity of your process, or publish content that only you could write, you’re building equity in your differentiation.

We share plenty of stories, analogies (yes, even garlic makes an appearance), and real-world examples of how agencies can reclaim their power. Because when you resist the pull to blend in, you not only build a healthier, more profitable agency—you build a business you actually love leading.

(00:00:00) The Race to the Bottom and How to Escape It

  • Why commoditization is draining agencies of value and energy

  • The telltale signs you’re being treated as interchangeable

  • Why clients rarely choose the lowest price—even when they say they do

  • How reframing confidence and niching can flip the pricing game

(00:11:56) Commoditization Is a Choice

  • How saying yes too often keeps you stuck as one-of-many

  • Why clients treat interchangeable agencies like line items

  • The difference between execution work and strategic partnerships

  • The trust-building shift that turns price into value

(00:17:20) Niching, Outcomes, and the Power of Process

  • Why niching down creates clarity around client problems and solutions

  • How leading with outcomes reframes pricing as an investment, not an expense

  • The authority you gain from sticking to proven processes

  • Why cutting corners to please clients undermines long-term trust

(00:26:29) From Vendor to Partner: The Thought Leadership Shift

  • Why partners zoom out while vendors just check boxes

  • How publishing insights and sharing your POV builds authority

  • Examples of agency leaders carving out time for visibility

  • The trust and alignment that come when clients already “know” you

(00:31:29) Choosing Differentiation as Your Growth Strategy

  • Why resisting the pull to commoditize leads to stronger partnerships

  • How standing firm on pricing and process creates better client fit

  • Episodes to revisit for deeper dives into niching and positioning

  • A final call to step into agency leadership with confidence

This episode is brought to you by:

Copper | Get 15% off any annual plan with code DARLINGS at https://copper.com/agency

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Meet Your Hosts

Meredith Fennessy Witts is the Founder of Le Chéile, the go-to finance and strategy consultancy for creative agencies.

Connect with her on LinkedIn and Instagram.

Melissa Lohrer is the Founder of Waverly Ave Consulting, a growth consultancy for indie agencies.

Connect with her on LinkedIn and Instagram.

 
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Episode 032. The Discount Hangover: Feels Good Now, Hurts Later