You are probably already doing it! Most trusts have some advertising income contracts, although many are not aware they have any or how many. If your trust has an outside supplier distributing its maternity packs and offering photography, companies promoted on your staff intranet, businesses on your wayfinding maps, adverts in six-sheet posters frames, third-party messages on patient information leaflets, or adverts in your staff magazine or bereavement literature, then you have advertising supplier contracts and should be generating advertising income from them.
Your trust is probably like many others, who are unaware of the full extent of the advertising income contracts they hold. This is because they are not centrally controlled and often they have been authorised by many different departments and by staff who are unfamiliar and not equipped with the skills to negotiate complex contracts. Inevitably the outcome favours the experienced advertising suppliers, who can profit from offering a “free” product or service, when you could be receiving an income. You might be receiving below-market prices and unfair contract terms, such as long rolling notice periods, with very limited opportunity for cancelling, or onerous restriction clauses.
Do you know who is managing these contracts and whether they are performing to their full income potential? Very few trusts centrally control, manage, monitor and audit each contract’s terms. If you are unsure of the contracts your trust currently holds, then an Audit Report will allow you to take control of all the contracts by:
- providing a report for each supplier
- collating the contract terms
- highlighting the key points
- listing all areas of concern and making recommendations for improvements
In our experience there has always been more that can be achieved, in terms of income and improved terms. At one trust we negotiated an extra £20,000 of income for the maternity department over a three-year contract period. At another trust we saved £25,000 in one year for the communications department by appointing a new supplier to provide the staff magazine.
We strongly recommend that you do not renew any advertising supplier contracts until you have spoken with us first. It could significantly increase your income. Let us investigate all your contracts and put you back in control.
Can you answer these questions?
- What contracts do you hold?
- Where are they held?
- Where does the income go?
- Are the terms fair?
- Are you being paid the market rate by your suppliers?
- Could they be improved?
- Are you in control?