Watch Your Nickels, Dimes and Administrative Fees
Costs for conducting qualitative market research are going up! Many focus facilities are raising their fees. But that's not all. Many have begun charging for services that were previously included in their facility rental and recruiting costs, or were not previously charged at all.
Some of these fees aren't always prominently displayed. So review supplier cost proposals carefully to make sure that you're accounting for the nickels and dimes. They add up fast. Here are some examples of fees that might affect your bottom line:
- You may pay a per person fee for snacks when meals are not served
- At some focus facilities it will cost you $25 per group--sometimes more--to have respondent summaries prepared
- 40 cents per photocopy plus an hourly administrative fee
- $300 per day to use video playback equipment (DVD player and TV monitor)
- $1,000 facility rental for one group
- If you need to use an easel, it can cost you $35 or more
- You will likely be charged an "administrative fee" when you need respondents recruited for offsite or remote projects. (To learn more about these fees, read the following article, "Administrative Fees For Offsite Recruiting: Do They Make Sense?")
When you are requesting respondent recruiting for offsite or remote projects, be aware that, in addition to the cost per recruit, you may be charged an offsite administrative fee. The amount can vary depending on the size of the recruit. Typically, the stated purpose of this fee is to enable the recruiting agency to offset administrative recruiting costs that are normally recovered by facility rental charges.
But before agreeing to these fees, here are a few things to consider:
Why are administrative fees only incurred for off-site projects? Aren't there administrative activities for onsite projects? There sure are. We think it makes sense for focus facilities and recruiting firms to separate recruiting, administrative and facility fees. That way, buyers can see what they are really paying for.
If more money is needed to cover administrative costs--and the facility rental is the "bank" that is borrowed from--why not simply increase the recruiting fees to be more representative of the true cost of the recruiting? That would help buyers to better understand and compare recruiting costs.
Administration fees raise another concern. Focus facilities are not usually required to provide administrative services when they are simply providing meeting space. So why does a facility rental without recruiting cost more? Based on the "logic" of offsite administration fees, a facility rental without recruiting should cost less.
Let's be honest. Isn't the real purpose of these fees so that focus facilities can make up for lost revenue (facility rental, videotaping, markup on catering) when projects are not conducted at the focus facility?
Think about it this way. You order a hamburger and the restaurant charges you for fries, even though you didn't order them. If the restaurant explained that they lose money on burgers when customers don't buy fries, would that make sense? Unfortunately for cost-conscience researchers, some focus facilities think it does.
Our advice to research buyers is this. Before agreeing to pay an additional fee for offsite recruiting or for renting a room at a focus facility, find out what additional services this fee buys. If you are not satisfied with the answer, negotiate a fee that better represents the service you are getting. If you are still not satisfied, our advice is that you consider another supplier.
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About Aaron-Abrams Field Support Services
Aaron-Abrams Field Support Services are respondent recruiting and fieldwork management specialists for qualitative market researchers. Aaron-Abrams Field Support Services delivers the right respondents for your qualitative market research with less stress, less hassle and fewer headaches. Sign up for free tips like this at www.aaronabrams.com.
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