What to charge for corporate videos? A hint anyone :)

youngindiefilms

youngindiefilms

Well-known member
Fellow freelancers and filmmakers.

In order to finance my upcoming film projects I have decided to do some freelancing on the side. I have some potential clients, but I have never done corporate videos and the like.
What does one charge? I know you can't easily generalize this.

There won't be any special effects necessary or any special setup. I will not do any post production on these either. I am providing all my own equipment and will be a one man gig. Hope that info helps so you guys can give me some guideline what is reasonable to charge.

I appreciate any advise.
 
I do them quite often. And I usually charge between $50 and $150 per hour depending on the scope of the project and the size of the business. Usually I do shoots that are not too complex so an 8 hour day is pretty normal for what I do.

for example, If I do a mom and pop ice cream shop spot, I know they are not working with too much I usually hook them up with a flat rate.

I'm pretty cut and dry when it comes to side work.
 
We deliver a flat rate estimate based on a $125 ph rate for corporate clients and $75 ph for non-profits. Then we stick to that flat rate unless the client makes a significant and unexpected change.

We find that works well because we don't have to nickel and dime people and have clients worry about calling us in for something because they don't want to pay a few hundred extra dollars. It has definitely won us some gigs because the client had a solid figure they could budget for.

BUT! In order for that to work you have to rely on two things:

1) That you and the client communicate effectively about what their needs and expectations are. That generally comes with experience. Most clients don't really know what they want, so you have to know what questions to ask. Especially if there is more than one person involved on their end.

2) That you understand your own process enough to know what you are getting into. In our case, I know that I am going to eat some hours on the back end. My standards are often higher than my clients and I will put more hours into editing than the client would require. But it has my name on it, and I'm okay with that.

Good luck.
 
That's very good info here Jim. I have some upcoming opportunities, no post production needed so I guess I can settle for a lower flat rate than you would usually charge.
About the filming process itself I don't have any concern, I have done several short movies and documentaries, working on one also at the moment. Normally I work with people who I know well, so the only concern here is working with others I haven't worked before. That can be difficult at times especially when you have to rely on them.
 
You charge whatever their budget is. And you deliver the best product you can within that budget constraint.

When they say "what will it cost" you answer "what is your budget for this?" If they won't answer, you say "look, it's like asking 'what does a house cost?' I can build a 10,000sf castle, or a two-room bungalow, depending on your budget, right? Same thing for video. We need to know what you have budgeted so we can build the best product that fits within that budget."

You never know, their budget might be $20,000. If you go in and bid $20/hr, you might find yourself with a grand paycheck of $1000 when it could have been $20,000 with props and sets and special effects and something that'd really shine on your reel.

Find out what their budget is.
 
Barry_Green said:
When they say "what will it cost" you answer "what is your budget for this?" If they won't answer, you say "look, it's like asking 'what does a house cost?' I can build a 10,000sf castle, or a two-room bungalow, depending on your budget, right? Same thing for video. We need to know what you have budgeted so we can build the best product that fits within that budget."

You never know, their budget might be $20,000. If you go in and bid $20/hr, you might find yourself with a grand paycheck of $1000 when it could have been $20,000 with props and sets and special effects and something that'd really shine on your reel.
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This is what I hate. Maybe I am just not getting it yet because I am still an amateur. Same with expensive computers or software or interior design or whatever. Those damn resellers or integrators don't have a fixed price, instead they "work" with you. I don't want them "work" with me, meaning pulling every last dollar out of me. Just give them damn options:
* cheap-ass video like local car dealership ads, shot outside on sunny day, harsh natural light, no effects, and I am providing my own presenter (a pushy car salesman) -- XX
* their own hot babe licking on my car (I am washing and waxing the car myself) and some cheap effects -- yy
* studio, pro sound, rotating podium, music specially written for this piece -- zz
* 100 dancers and an orchestra -- zillon bucks
etc. Then I MYSELF will be able to choose and to assess my aspirations with my budget. Maybe I will even increase the budget if I am presented with clear choices.

I understand that simply calculating budget for those base choices is a separate work, and is not free. But if you are a professional, you should at least know the ballpark, give or take. I am not expecting a marching band with street closures for 500 bucks, for chrissake.

I suppose, I would make a really bad client ;-)
 
Let's say it again: "what an apt username"... :)

I used to do corporate video for a living. It can be a good living. Do it the way I outlined, and you'll maximize the potential revenues. Remember the age-old adage "he who mentions a number first, loses."

For customers like Cranky, who really don't know what they want, I would offer a three-tier pricing plan, but that only comes with experience and knowing what a client likely wants and knowing what you can do it for. If they simply didn't know what something costs and they didn't know really what they want, I'd show them some examples with the knowledge that I could do any of them for my "base price". Then I'd say "look: I can do a bargain-basement commercial for $3,000... I can do a much nicer one for $5,000... and I can give you a really special, really great commercial for $20,000." (or whatever, depending on the job and the client, etc...) Almost every single time they chose the middle price. They didn't want to appear "cheap", so they always chose the middle. Which was way more profitable than the bottom-rung cheap video, so it always worked out.

And if they said that the lowest-budget figure was too high? Great -- get out. I'm glad to know that you're a phenomenal cheapskate who won't value my work, and I'm glad to know it NOW, before we get started. Please, there's the door, walk through it now. Go. I'm serious. NOW. Get out. (you folks just now getting in the business, you'll thank me for this some day...)

I am not expecting a marching band with street closures for 500 bucks, for chrissake.
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Oh, you'd be surprised. Obviously you're new at this... :)
 
Barry, you have a point here but Cranky has a point too. On one hand you may sell yourself below value and you could have gotten out of the client more $ but I really guess it depends on the job.
As mentioned earlier, there won't be any special effects or the like so I don't think there will be a wide variety of possible budgeting for this one.
However, it's a good idea to ask them what budget they have in mind. I will certainly do that and if they don't come up with something clear I will quote what I have in mind.
 
Barry_Green said:
Let's say it again: "what an apt username"... :)

I used to do corporate video for a living. It can be a good living. Do it the way I outlined, and you'll maximize the potential revenues. Remember the age-old adage "he who mentions a number first, loses."

For customers like Cranky, who really don't know what they want, I would offer a three-tier pricing plan, but that only comes with experience and knowing what a client likely wants and knowing what you can do it for. If they simply didn't know what something costs and they didn't know really what they want, I'd show them some examples with the knowledge that I could do any of them for my "base price". Then I'd say "look: I can do a bargain-basement commercial for $3,000... I can do a much nicer one for $5,000... and I can give you a really special, really great commercial for $20,000." (or whatever, depending on the job and the client, etc...) Almost every single time they chose the middle price. They didn't want to appear "cheap", so they always chose the middle. Which was way more profitable than the bottom-rung cheap video, so it always worked out.

And if they said that the lowest-budget figure was too high? Great -- get out. I'm glad to know that you're a phenomenal cheapskate who won't value my work, and I'm glad to know it NOW, before we get started. Please, there's the door, walk through it now. Go. I'm serious. NOW. Get out. (you folks just now getting in the business, you'll thank me for this some day...)


Oh, you'd be surprised. Obviously you're new at this... :)
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That all sounds reasonable Barry, thanks for your advise. I will go and ask for their budget.
 
Pricing is a marketing issue and needs to be approached as such. I recommend researching human behavior studies and things of that nature; you have to understand who is looking at you for their jobs, what their budget might be and how they make purchasing decisions. Then cater to this. Barry's post hits on that as well, but there is not a template for pricing that gets rid of the actual work.
 
Barry has the perspective of experience. Most people just starting out (unless they are working for bigger companies) are only thinking about lower budget shoots. But clients don't always think that way. They may want/expect/need more.

I don't think Barry is suggesting that you just walk in and say "what's your budget?". Chat first about their needs and who their audience is (arguably the most important question). Then ask them what they are hoping to pay. Having been on both sides of that a number of times, I assure you that they already have a number in mind. They may not want to broadcast what their top dollar figure is, but they have a number. AND THEY WANT TO GET THAT OUT OF THE WAY AS QUICKLY AS YOU DO. Everybody breathes a sigh of relief when they know they are on the same page regarding price. The question is, what do you get for that price, and is it what the client really needs?

The fact is that any service for a client should be based on the needs of the client. You find that out through discussion. But the next step is finding out how to best meet that need. If you don't know the resources that client is willing to put behind the project, you are doing them a disservice. They may well have gladly paid an extra 5K to shoot in HD, or use a jib, or whatever. But since you gave them a bid they took that at face value, assuming that you as a professional were telling them what they needed to meet their needs. It's not about sucking the life out of a revenue source. It's about serving the client and trying to establish long-term, mutually beneficial relationships.
 
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Jim Brennan said:
It's not about sucking the life out of a revenue source. It's about serving the client and trying to establish long-term, mutually beneficial relationships.
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Exactly exactly exactly. You want to give them what they want, so they're happy and they'll tell everyone about you.

To use another analogy from cars -- if a guy walks up to you and says "I need a car", do you immediately try to put him in the Hyundai? He may very well want and even need the Lexus or the Cadillac. Find out what he needs, and then get that for him, and he'll be happy.

And if he's the kind of guy who demands a Cadillac, but says he's only going to pay $5,000 for it -- that's the kind of customer you don't want or need. But the person who values quality, who values service, who values professionalism and respects you and your work -- those clients are gold, they make the whole business worth doing.
 
Barry's advice is (as usual) spot on. I literally just got off the phone with a client that I'm doing a shoot for tonight. It's a last minute deal. I would've done it for X amount of money, but the dude offered me double that amount when I asked him what his budget was. He's going to be happy with the finished product and I'm going to be happy with my compensation. It's a win-win situation.
 
Jim Brennan said:
...

I don't think Barry is suggesting that you just walk in and say "what's your budget?". Chat first about their needs and who their audience is (arguably the most important question). ...
The fact is that any service for a client should be based on the needs of the client. You find that out through discussion. But the next step is finding out how to best meet that need.... g the client and trying to establish long-term, mutually beneficial relationships.
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That goes without saying, I agree.
 
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