How to Price Your Video Production Services: A Step-By-Step Guide
If You Want to Create Video Content Professionally, You’ll Want to Bookmark This Article
Making video content in the professional world can be a complex process, with a whole lot of nuance. For example, you can film a video project for $5,000 or $50,000, and the only thing that triggers the difference in price is the type of camera you use. This is a great YouTube video that breaks down the differences here [CINEMA VS DSLR CAMERAS — Which should you buy?].
As a video content professional or company, one of the most important decisions you’ll make is how you set — and share — your rates with the market. Because ultimately, your rates will determine how much you earn for you or your company’s time and expertise, and they’ll also play a role in attracting new and recurring clients.
In this step-by-step article, we’ll explore the factors that go into setting video content rates, how to determine the right rate(s) for your services, and how to package and sell your services to clients.
Steps:
- Level of Experience
- The Complexity of the Project
- Understanding the Market Rate(s)
- Overhead Costs
- Calculating Your Costs
- Daily Rate vs. Hourly Rate
- Budget
- Quote
Bonus:
- Clear Communication
- Offering Multiple Packages
Factors That Impact Video Content Rates
There are several factors that can influence your video content rates, including:
- Your level of experience
- The complexity of the project
- The market rate
- Your overhead costs
As a video content professional, your level of experience is an important factor that can affect your rates. If you have a lot of experience to date, you may be able to charge higher rates than someone who is just starting out.
If you’ve been working in the industry for several years and have a strong portfolio of work, you may be able to charge higher rates. By this point, you’ll have a proven track record of producing high-quality work, and have developed a valuable skill set and expertise over time.
The complexity of the project is another factor that can affect your rates. For example, a video project that requires travel or a large crew will typically cost more than a simple, straightforward one.
This is because these types of projects require more time, resources, and expertise to complete. When quoting a project, be sure to take into account any additional costs that may be incurred as a result of the project’s complexity.
Further, it’s important to be aware of what other video content professionals in your local area are charging for similar services. You don’t want to charge too much and risk losing business. But you also don’t want to undervalue your services. This can be a tricky line to dance. To get a sense of the market rate, one tip is to ask other professionals in your area what they are charging, or do some research online to see what others are charging.
Lastly, your overhead costs, such as gear, hardware, software, and staff (either in-house or out-of-house) will also play a role in determining your rates. These costs represent the expenses you incur in order to provide your video content services. In order to turn a profit, you’ll need to factor these costs into your rates.
Be sure to include all of your overhead costs when calculating your hourly rate, so you can cover your expenses and still make a profit. If you don’t, make sure you have a clearly defined and outlined budget tracker that can be used with all necessary members of the team.
Determining the Correct Rate for Your Services
So, how do you determine the right rate for your services? Here are a few steps you can follow:
- Calculating your costs
- Setting a daily rate (not hourly)
- Determining the budget for the project
- Providing a quote
It’s essential that you have a clear understanding of all the costs associated with your business. This will help you accurately price your services and ensure that you’re maximizing your budget.
An effective exercise you can do is to make a list of all the costs associated with your video content business. This might include cameras, lighting equipment, and any specialized tools or software that you need to complete your projects.
Be sure to also include the cost of any maintenance or repairs that might be required for your equipment. By making a comprehensive list of all of your costs, you’ll have a clear picture of your overhead expenses and will be better equipped to set accurate rates for your video content services.
In my experience, one of the most important things you can do is to set a daily rate for your services — not an hourly rate. Chris Do, Founder of The Futur, explains this to perfection here [3 Pricing Strategies — How To Price Your Service 2022]. The core of the idea is this: more often than not, it’s just a more effective way to work with a client.
This leads to the next step: determining the budget. Talking about money can be a challenging and confusing task, especially when starting out. But you always want to start with the budget first, before any creative ideas are thrown out or put together. This is imperative to nearly every aspect of video content services.
When discussing the parameters of a project with the client, make sure to align on important items such as the length of the video, the number of locations, any specific editing requirements, and deadlines. Oftentimes, this can be the most challenging step for people to learn.
An easy analogy you can use is this:
It’s like building a house.
If you design a house without a budget, sure, you can create your ideal blueprint with 10,000 square feet, furnish the space with the most expensive furniture, rugs, and paint you can find, all of which would eventually turn into an immaculate home.
But if the final cost to build comes back at $1.5M, and your budget was only $750K, it was a huge waste of everyone’s time. So rather, it’s most efficient to start with the $750K budget first, then figure out how to build your ideal home from there.
It’s the same with video content. Start with the hard costs first, then create backward from there. Oftentimes, you’ll find those budget parameters are actually a good thing.
Lastly, based on the scope of the project and your rate, provide the client with a quote for your services. Be sure to itemize the costs and include any additional fees, such as travel expenses or equipment rentals.
Packaging and Selling Your Services to Clients
Now that you’ve determined your rates, it’s time to package and sell your services to clients. Here are a few bonus tips:
- Be transparent
- Offer different packages
One of the best quotes I’ve heard that is applicable to nearly all areas of life is this:
“All problems — at their core — are communication problems.”
So the better you get at clear and effective communication, the better your work life (and probably personal) will be.
That’s why it’s important to be transparent and upfront about your rates and any additional fees. It’s much harder to ask for additional funds after a project is wrapped, versus addressing it upfront. This means clearly outlining your pricing structure and any potential additional costs, such as travel expenses or licensing fees, at the beginning of the project.
Being upfront about these details can help prevent misunderstandings or miscommunications down the line, and can help establish a clear and open line of communication between you and your clients. It can also help you to avoid any potential conflicts or disputes over payment, as both you and your clients will have a clear understanding of what is expected from the outset.
Offering a variety of packages at different price points can be a great way to appeal to a wider range of clients and potentially increase your business. By offering a range of options, you can cater to clients with different budgets and needs, and can potentially attract new clients who may have otherwise gone elsewhere.
One way to structure your packages could be to offer a three-tier approach.
In Tier 1, you can offer a basic package at a lower price point, which includes the essentials such as filming and editing. In Tier 2, you could offer additional options such as additional crew members or filming days. In Tier 3, you could then offer items like location rental, additional video edits, or add-ons at higher price points, such as the inclusion of additional filming days or the use of specialized equipment. By offering these options, you can give your clients the flexibility to choose the package that best meets their needs and budget.
It’s also important to consider the value you are offering with each package. Even if a higher-priced package includes more features, it should still offer good value for money to your clients. Make sure to clearly communicate the value of each package and what it includes so that your clients can make informed decisions.
Overall, offering different packages at different price points can be a good way to appeal to a wider range of clients and increase your business. Just make sure to carefully consider the value you are offering with each package and to clearly communicate the details to your clients.
Be open to negotiating your rates and making compromises to win business. However, be sure to protect your bottom line and don’t undervalue your services.
Closing + Video Content Rates
In conclusion, pricing your video content services can be a daunting task, but by following these steps, you can arrive at a fair and competitive price point that works for both you and your clients.
By following these steps and being aware of the various factors that go into pricing your video content services, you can create a pricing strategy that works for you and your business.
Another challenge can be understanding the appropriate rates associated with video content personnel. So to help, I created this article — The Ultimate Guide to Video Content Production Rates.
