How much do I charge?
Working out how much to charge for your services is not always easy. Whilst you may want to keep your prices low, so businesses will contract you to shoot their video, low prices can put some potential clients off. “If it’s that low, then it can’t be any good,” can sometimes be the response.
Set a number of rates
When I started, I set a number of rates which I then based my quotes on. Valuing your own time is not always easy, but here’s what I did.
- An hourly rate for videoing. Some clients want to know how much you charge per hour to shoot a video. I always give them a figure, but I also tell them that there are other costs associated with producing a promotional video and I’d rather quote on a project basis. My hourly shooting rate is $120/hour.
- An hourly rate for editing. Again this is just one element of making a video so again I always give them a project cost, by my hourly rate for editing is $80/hour.
- Pre-production. Working with your client to decide on a script, shooting locations, etc all takes time and you need to have a pre-production rate. This can be less than your shooting or editing rate, but you do need to work out a fee. My rate for pre-production is $60/hour
Project costs are better
It’s better all round to give a client an all up cost to produce their video. This means you may have to allow for a contingency line item in the budget, but most of my clients prefer an overall project cost. This also benefits you as you know what your income is going to be for that project.
When you prepare a budget, make sure you break each phase of the project down into one of three main sections. Pre-Production (sometimes called the ‘Above the line’ costs), Production and Post-Production (or ‘Below the line’ costs).
Each section can then be broken down into line items. There are lots of sample industry budgets on-line. It’s good to check out a couple of these and then adapt one for your own business. Using an industry sample means you are less likely to forget a line item.
Invoicing
I sometimes break my invoicing down into two. One invoice is sent after you have finished shooting with the second one when the job is completed. If there is will a gap between shooting and editing, then this can help your cash flow. Always set out due dates, bank details, etc in your invoices.
Bad debts
Everyone in business experiences bad debts – I have only had two in 11 years with a total of $2000 – so I think I am doing OK. Invoicing after you finish shooting can help reduce bad debts, as if your first invoice isn’t paid – you may decide not to proceed with editing. After a while you get a second sense about this, but if you do get bad debts, then it’s probably simpler to put this in the hands of a debt collector, rather than chasing it it yourself.
Next time … working with your clients on shoot day.
Here are other posts in this series:
- Video on-line during CovID-19
- Multicam video – the technical stuff
- What are you doing in ‘lock-down’?
- Scary outcome when shooting with multiple cameras
- Five values that shape what I do
