All projects or services that 2 HOT MARKETING LIMITED may be contracted to produce or provide for THE CLIENT will be subject to the following:
WORKING/BILLING PHASES – Based on our experience with long-term design communications projects, we have found that it is mutually advantageous to handle each project in logical working/billing phases.
Concept revisions, extensive alterations, or a switch in marketing objectives sometimes makes it impossible to accurately estimate in advance the total cost of a project. Planning the work, cost estimating, and billing in several phases permits 2 HOT MARKETING LIMITED or THE CLIENT to adjust for such revisions/or halt work before completion if a project is postponed or cancelled. Any cancelled project is billed only through phases and/or portions of phases that were actually completed by 2 HOT MARKETING LIMITED. For each project, THE CLIENT will receive a proposal/estimate outlining the project specifications and our proposed scope of services and working/billing phases. Each proposal estimate will contain a project budget, which includes estimated fees for professional services and separate itemized costs for anticipated out-of-pocket expenses.
We will begin work upon THE CLIENT’S approval of the written estimate. Your approval (written or oral) will constitute an agreement between us.
PAYMENT/ESTIMATES – THE CLIENT agrees to pay 2 HOT MARKETING LIMITED in accordance with the terms specified in each proposal/estimate. On accounts that have not submitted a credit application and been approved by our credit department, will be required to pay 50% of the project cost before work can begin.
Unless otherwise specified, all subsequent balances due are payable upon art approval. Interest on past due balances is 18% per annum or 1.5% per month. We reserve the right to refuse completion or delivery of work until past due balances are paid.
Estimate: Billing will reflect the actual costs incurred. Valid for only 30 days from date on estimate. THE CLIENT requested changes will be billed additionally. THE CLIENT will be notified of any price changes.
OUT-OF-POCKET EXPENSES – Fees for professional services do not include outside purchases such as, but not limited to, printing, photography, colour printouts, laminating, illustrations, separations, shipping and handling or courier service. Expenses are itemized on each invoice. Expenses are subject to UK sales tax unless 1) You are a non-profit organization; or 2) the work is for resale and you have submitted a resale certificate to 2 HOT MARKETING LIMITED. If consultant or supervisory services are required in out-of-town locations, we will bill lodgings, meals, and transportation at cost. Reimbursement for mileage is calculated at current allowable rates.
REVISIONS AND ALTERATIONS – New work requested by THE CLIENT and performed by 2 HOT MARKETING LIMITED after a proposal/estimate has been approved is considered a revision or alteration. If the job changes to an extent that substantially alters the specifications described in the original estimate, we will submit a proposal revision memo to you, and a revised additional fee must be agreed to by both parties before further work proceeds.
Author’s alterations and other copy changes requested after layouts or mechanicals are completed are billed at standard hourly rates.
OVERTIME – Estimates are based on a reasonable time schedule, and may be revised to take into consideration your “Priority Scheduling” requests requiring overtime and weekends. Knowledge of your deadlines is essential to provide an accurate estimate. In addition, outside suppliers such as service bureaus charge a 100% to 200% markup on overtime after 5:30pm and weekends.
NATURE OF COPY – THE CLIENT agrees to exercise due diligence in its direction to us regarding preparation of materials and must be able to substantiate all claims and representations. You are responsible for all trademark, servicemark, copyright and patent infringement clearances. You are also responsible for arranging, prior to publication, any necessary legal clearance of materials we prepare.
ERRORS AND OMISSIONS – It is the THE CLIENT’S responsibility to check proofs carefully for accuracy in all respects, ranging from spelling to technical illustrations. 2 HOT MARKETING LIMITED is not liable for errors or omissions. Your signature or that of your authorized representative is required on all mechanicals or artwork prior to release for printing or other implementation.
TELECOMMUNICATIONS – THE CLIENT shall pay for all transmissions charges. 2 HOT MARKETING LIMITED is not responsible for any errors, omissions or extra costs resulting from faults in the telephone, cable, satellite network or from incompatibility between the sending and receiving equipment.
OVER RUNS AND UNDER RUNS – THE CLIENT will accept over runs or under runs that do not exceed 10% of the quantity ordered on all jobs. 2 HOT MARKETING LIMITED will bill for actual quantity delivered within this tolerance. If THE CLIENT requires a guaranteed quantity, the percentage of tolerance must be stated at the time of quotation.
PLACEMENT OF ADVERTISING – At your request, we will purchase media space on your behalf through our media division. Space will be billed to you at current rates plus the standard agency commission.
INSPECTION OF BOOKS – Upon reasonable notice, invoices from our vendors, time sheets and other documentation relating to your account will be available to you.
PROPERTY AND SUPPLIER’S PERFORMANCE – 2 HOT MARKETING LIMITED will take all reasonable precautions to safeguard the property you entrust to us. In the absence of negligence on our part, however, we are not responsible for loss, destruction or damage or unauthorized use by others of such property. We will use our best efforts to ensure quality and timely delivery of all printed (offset, silk-screened, embossed or otherwise reproduced) pieces. Although we may use our best efforts to guard against any loss to you through the failure of our vendors, media, or others to perform in accordance with their commitments, 2 HOT MARKETING LIMITED is not responsible for failure on their part.
If you select your own vendors, other than those recommended by us, you may request that we coordinate their work. If at all possible, we will attempt to do so, but we cannot in anyway be held responsible for quality, price, performance or delivery.
LIEN – All materials or property belonging to the THE CLIENT, as well as work performed, may be retained as security until all just claims against the THE CLIENT are satisfied.
RIGHTS OF OWNERSHIP – Once a project has been delivered by us and is fully paid for by THE CLIENT, 2 HOT MARKETING LIMITED will assign the reproduction rights of the design for the use(s) described in the proposal.
According to the Copyright Law of 1976, the rights to all design and art work, including but not limited to photography and or illustration created by independent photographers or illustrators retained by 2 HOT MARKETING LIMITED, or purchased from a stock agency on your behalf, remain with the individual designer, artist, photographer or illustrator. Unless a purchase of “All Rights” (A Buyout) is negotiated with 2 HOT MARKETING LIMITED and/or his/her authorized representative, you may not use or reproduce the design or the images therein for a purpose other than the one(s) originally stipulated. If you wish to use the design we have created and/or the images within it for another purpose or project, including a reprint or exhibition, you must contact us to arrange the transfer of rights and any additional fees before proceeding. If printing or other implementation is done through your vendors, you agree to return to us all our original mechanicals and artwork (disks, slides, prints, drawings, separations, etc.) within two weeks, and to provide us with printed samples of each project.
We reserve the right to photograph and/or distribute or publish for our firm’s promotional and marketing needs any work we create for you, including mock-ups and comprehensive presentations, as samples for our portfolio, firm news letter, brochures, slide presentations and similar media. We agree to store mechanical boards and computer disks for a period of 6 months beyond the delivery of a job. Thereupon, we reserve the right to discard them.
TERM AND TERMINATION – The term of this agreement will continue for work in progress until terminated by either of us upon thirty (30) days written notice. If you should direct us at any time to cancel, terminate or “put on hold” any previously authorized purchase, we will promptly do so, provided you hold us harmless for any cost incurred as a result.
Upon termination of this agreement, 2 HOT MARKETING LIMITED will transfer to THE CLIENT all your property and materials in our control and for which you have paid. THE CLIENT will indemnify and hold 2 HOT MARKETING LIMITED harmless for any loss or expense (including solicitor’s fees), and agree to defend 2 HOT MARKETING LIMITED in any actual suit, claim or action arising in any way from our working relationship. This includes, but is not limited to assertations made against THE CLIENT and any of its products and services arising from the publication of materials that we prepare and you approve before publication.
PRODUCTION SCHEDULES – Production schedules will be established and adhered to by both THE CLIENT and 2 HOT MARKETING LIMITED, provided that neither shall incur any liability, penalty or additional cost due to delays caused by a state of war, riot, civil disorder, fire, labour trouble or strike, accidents, energy failure, equipment breakdown, delays in shipment by suppliers or carriers, action of government or civil authority, and acts of God or other causes beyond the control of the THE CLIENT or 2 HOT MARKETING LIMITED. Where production schedules are not adhered to by the THE CLIENT, final delivery date or dates will be adjusted accordingly.
ADDITIONAL PROVISIONS – The validity and enforceability of this agreement will be interpreted in accordance with the laws of the United Kingdom applicable to agreements entered into and performed in the United Kingdom. This agreement is our entire understanding and may not be modified in any respect except in an executed agreement.
If we must retain solicitors to collect our invoices, we will be entitled to reasonable solicitor’s fees, court costs, and interest at the maximum rate permitted by law.
Why We Don’t Make Speculative Presentations
The main product of our business is ideas — creative solutions to the communications problems and opportunities facing our many clients. And good ideas — creativity — can be tough to define, or agree upon. One person’s passion is often another’s poison. So it’s no wonder that potential clients often ask us to take a project on speculation. That is, to try out our creative product in much the same way they may try out other types of products before purchasing.
Unfortunately, we must turn down such projects. This will explain why doing so actually makes us a better, more stable and reliable supplier for you to do business with.
It lets us keep our prices low
We make money mostly by selling our time. Unlike businesses that sell products, we can’t take time back and resell it. Thus, the less time we actually sell, the more we have to charge for it. So we attempt to hold our prices down by keeping constantly busy.
We also have substantial fixed overhead costs — computers, peripherals, software, etc. So the higher the percentage of our time that is productive (billable), the more we can spread these costs, and the less each individual client gets charged for them.
In addition, the only way we can recover our overhead costs is through what we charge our clients. If we accepted speculative projects, the overhead for these non-billable hours would have to be added to the factor we already charge our regular, paying clients. We don’t think this would be fair.
We want to give you only our best
We are very proud of our track record of helping many different clients with many different challenges. In doing so, we have come to understand the crucial components in producing outstanding creativity.
First, outstanding creative work requires good, complete input from our clients. It takes time and effort that’s tough for them to justify unless they are committed to awarding an assignment. Yet without it, we can’t show how good we really are. Or our best effort may well be misdirected; a great shot that hits the wrong target.
Equally important, great creativity requires enthusiasm. We need to be excited enough to pour all our energy into a project. Frankly, that’s impossible without knowing whether we will be chosen to go all the way, or even get paid.
And, finally, developing creativity is very labor intensive. Although we wish it were otherwise, it seldom comes in a flash of inspiration. Rather, it usually requires research and thinking time, then the working through of many different ideas and approaches. This makes it difficult or impossible to do good work in a compressed time frame.
Speculative projects, whether done by us or some other firm, usually require cutting every creative corner. That’s hardly in your best interests, or ours.
We’re a small firm, in business to stay
We hope our small size is what attracted you to us. It has lots of business advantages. Because we are small, you get to deal directly with those actually doing your work; there are no “middle- men” to muck things up. It also means we’re more flexible, able to turn things around faster. We can offer better, more personal service, too. And because our overhead is lower than the big guys, so are our prices. In a business like creativity, size is seldom an advantage.
All these are reasons why we have been so successful. It may also be why you called us.
Another reason for our success is that we are good business people. We know that a small business like ours (probably yours, too) has to watch costs carefully and can’t afford to give much away. If we weren’t careful — if we did give away our time — it is likely we wouldn’t be here next time you called, which means you’d have start all over again bringing someone else up to speed learning your business. We doubt you’d want that, and we know we wouldn’t. We believe we should both be looking to build a long-term, mutually-productive and cost-efficient business relationship.
Truth is, small organizations like ours can seldom afford to accept speculative projects. If you find one that will, be skeptical. They may be desperate.
As for larger organizations and agencies, yes they can afford to do speculative projects, and often do. But that’s the very point. If they do have the volume and staff that makes it a small risk for them, they’re probably too big to give you the personal service and outstanding creativity you’re searching for.
We hope you’ll give us the opportunity sometime soon to prove just how good we really are. In the meantime, look carefully at our portfolio. The work we have done for many other clients with many other challenges speaks volumes about our abilities.
