Dealing with customer edit requests and deciding budgets

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    • #72029419

      Hi guys
      I work at a startup digital media company and we make videos for various clients, medium to large businesses mostly.

      We have two problems. One is that I see some videos being made really cheap, and others being made for super expensive, at the same quality, simply because it’s a bigger company. We would love to have those bigger budgets for the videos but we dont know how to justify it. For example I’ve seen a video project for 20,000 USD by another company at the same quality as ours for a similarly large company at 6,000 USD. What would be a method of getting those higher budget videos and justifying the price ?

      Another problem we face is with customers who take full advantage of their number of free additional edits and even try to push it further. They don’t understand the amount of work involved for the editor. I wonder if any of you have an effective system for fixing this problem.

      I appreciate the help!

    • #72029527

      For problem #1: Base your billing on your costs for labor, amortization of hidden expenses — e.g., insurance, vehicle costs, depreciated value of equipment, etc. — and profit. I recommend you calculate your charges on time. For example, actual shooting and editing time, time spent on site location, story-boarding, travel, etc. If you bill this way you will bill high on complex jobs, less high on small, easily done jobs.

      You are “selling” your time and talent to a client. The value of your talent may be debatable: a client either appreciates it or not. But the time you spend on a project is quantifiable and you can put a dollar value on it.

      And this, of course, ties in to your second problem. If you are charging by the hour for editing, your clients understand that changes cost money. There’s no reason why you should absorb the value of time spent making changes.

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