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April 8, 2015 at 9:49 AM #85327kimlingcMember
I am just getting started with my videography buisness and Im not sure what I should charge people. I dont want to overcharge people but I dont want to be selling myself short either. Is there any sort of standard for this sort of stuff? I shoot with a cannon 7D and I have a zoom H5N a light a tripod and glidecam.
April 9, 2015 at 10:57 AM #212076JackWolcottParticipant
A good starting place for figuring out what to charge is "cost," rather than "what am I worth." In other words, what are the costs associated with my video business — insurance, travel (including mileage, depreciation and maintainance) phone, web, advertising, memberships, etc., — you get the idea.
Then consider how many shoots/jobs you think you might reasonably have in a year. I know you're just starting out, but make a rough guess — a couple of weddings, maybe a High School event, three or four photo montages and a handful of DVD duplications. Ten or twelve all told for your first year.
So, you have to cover all your costs from those 10-12 jobs. Right away your going to be charging $20-30 an hour for your work. Then figure in what you think is a good begining salary for yourself; you're starting out, so lets say $25 per hour, a lot more than you can make at McDonalds! So now your charging somewhere in the neighborhood of $50 per hour, but you haven't added in anything for the business — i.e., a "salary," if you like, so the business can grow, new equitment can be purchases, etc. I'd add at least 20% of the total for this. So now you're up to $60 an hour; you're paying yourself a modest hourly wage, providing the begining of a growth fund, and covering all your costs.
Do I think this is low-ball? Well it certainly is in many markets and I would never charge this little, but for someone just starting out it's probably o.k. Tinker with what you think you should be getting for an hourly salary; just be sure that your costs are included first.
April 13, 2015 at 5:57 AM #212092StanDan ProMember
THIS ADVICE WILL LITERALLY MULTIPLY YOUR INCOME WITHOUT HAVING TO DO ADDITIONAL WORK AS A VIDEOGRAPHER:
Another way to look at "what to charge" is to charge the client the value of a single transaction (or a few). In other words, charge the client the value of acquiring just ONE new customer as a result of your video. This will also reorient what type of client you should target. For instance, we have had clients where just ONE customer was worth $150k to them … so selling them on a $10k package was so easy. The only thing we had to do was to demonstrate that we had the skills to do it.
However, trying to sell THE EXACT SAME PACKAGE to a client who's customer is worth only $100 is much harder … practically impossible, unless the client can see the bigger picture. So, target industries that have higher transaction fees and you can make MORE money for the same amount of work (compared to industries with lower transaction fees). Real Estate is one such industry.
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