How to charge premium prices


Den Lennie TV-Bay Magazine
Read ezine online
by Den Lennie
Issue 98 - February 2015

How much should I charge? Is probably the most commonly asked question I receive here at F-Stop Academy. And the answer? As much as you can and your client is willing to pay. In business it is your duty to maximise your profit.

If you are offering a premier boutique video production service then charge accordingly. If you are going to go out into the marketplace and you make beautiful films that help your clients sell more of their products, services or widgets then why not be the very best and charge 5* prices?

I'm serious, if you are gonna go to the trouble of setting up a business and putting yourself and your livelihood on the line, surely it makes sense to make as much money as you can?

I like to be reassuringly expensive. It gives confidence to a client - but like I said earlier, you have to be confident that you can deliver a premier product and service.

The only caveat is that you are genuinely offering a superior service than your competitors.
Let me be clear, you cannot simply charge 5* prices if you're only presenting yourself as a 3 * service.

The value has to be of 5* standards.

The secret here is to be very focussed on your client's problems and do everything you can to solve them with the minimum of fuss.

If your client is say a marketing manager and has a team of 5 people in their department then there's every likelihood that the project they have commissioned from you is only 1 project in 5 or more that they may be responsible at any given time.

Here's how the client will be seeing the project:

- They need a video shooting
- They don't care about what camera you are using
- It needs to be on message
- It needs to fulfil the brief
- It needs to be delivered on time
- It needs to fit a predefined budget *
- It needs to work
- It needs to happen with minimal fuss
- It has to be shot on a certain day for various reasons
- Jane in another department has heard about the shoot and wants to film another product as part of the shoot seeing as they are already paying for a crew.

*This is often an arbitrary figure.

There will be a provisional budget internally for what they want to assign to the project. In my experience this can always be negotiated. Also once we begin to discuss a project the scope always grows. We refer to this as scope creep. The client will have a figure in mind that they want to spend and it's your job to up-sell them to the point where you are offering so much value they are willing to spend more than they first planned to.

Most of all the client wants a hassle free life. Most likely they will be a middle or senior manager on a salary. It's just one project of many they may be looking after throughout the year. Your job is to take away their headaches and make life easy for them. Remove their pain and they will happily pay you for that.

Humans are motivated away from pain. When you work in a corporation the workload can be overbearing. I know because I've done it. When you get a chance to hire external suppliers this can really lighten your load, provide a good excuse to break the monotony and get out on a shoot.

I love Apple products, I love how easy they are to use, I love how cool they look and I love the whole Apple experience.

And yet I can have a 'Hackintosh' built that will be more powerful and cheaper than the equivalent mac. Technically better with more processing and memory...

I'm a creative, Macs are cool PC's are not...just my opinion. Now that is the basic crux of the marketing.

Apple are a premium brand who provide a premium user experience. Sleek, stylish and cool
And that is premier positioning.

Take the Apple approach and that's what allows you to charge a premium rate for your product or service.

To read more and download a free chapter at
www.businessforfilmmakers.com


Tags: iss098 | project | video industry | f-stop academy | pricing | shooting | Den Lennie
Contributing Author Den Lennie

Read this article in the tv-bay digital magazine
Article Copyright tv-bay limited. All trademarks recognised.
Reproduction of the content strictly prohibited without written consent.

Related Interviews
  • Projects Department on BroadcastShow LIVE at IBC

    Projects Department on BroadcastShow LIVE at IBC

  • Tiger Technology at BVE 2015

    Tiger Technology at BVE 2015

  • Movidiam at BVE 2015

    Movidiam at BVE 2015

  • Cooke Optics technology at IBC 2014

    Cooke Optics technology at IBC 2014

  • Cooke Optics on BroadcastShow LIVE at IBC 2013

    Cooke Optics on BroadcastShow LIVE at IBC 2013

  • Wowza Media Systems on BroadcastShow LIVE at IBC 2013

    Wowza Media Systems on BroadcastShow LIVE at IBC 2013

  • Azule Finance at BVE 2013

    Azule Finance at BVE 2013

  • Marquis at BVE 2012

    Marquis at BVE 2012


Related Shows
  • Day 1 of BroadcastShow at IBC

    Day 1 of BroadcastShow at IBC


Articles
Review: JVC GY-HC900 Camera
Andy McKenzie JVC has a long history of developing relatively low price-point equipment, dating right back to its success in the 1970s with the VHS tape format. JVC products sometimes impact the broadcast mainstream but generally find greatest success in niche market segments such as news production where price and portability take priority over the no-comprise quality and robustness demanded by the leading studio-based and OB content producers.
Tags: iss138 | jvc review | camera | sdhc | sdxc | mpeg-2 | nab | gy-hc900 | Andy McKenzie
Contributing Author Andy McKenzie Click to read or download PDF
How the Womens World Cup was Boosted by Broadcast
John Griffiths As we write this article, England’s Lionesses have just beaten Norway 3-0 and are smashing viewing figure records, with 6.9 million viewers tuning in to watch them play Cameroon on BBC One. Rewind to the previous World Cup in 2015, and England’s group and early stage knockout games tempted up to 2.5 million viewers for each match. It’s safe to say that women’s football is finally having its moment; what was perhaps once considered a niche sport is finally gaining momentum in the mainstream space with broadcasters giving it the attention it deserves.
Tags: iss138 | wwc | world cup | spicymango | diversity | John Griffiths
Contributing Author John Griffiths Click to read or download PDF
Making the Workflow Flow
Bruce Devlin - new The toughest things about being the Standards Vice President (SVP) is that everyone expects standards to be the most important thing. In all the systems that I’ve designed and deployed over the years, I've yet to find any production workflow that is 100% standards based. True, the core technologies may well be standards based, but the overall workflow is made up of many technology pieces from open source code, through de-facto delivery specifications based upon SMPTE or Trade Association Specifications that in turn depend on full, International Standards to work. I can already hear some folks saying "In the good old days, everything used standards", but I beg to disagree.
Tags: iss138 | pye museum | pye-philips | smpte | ietf | ieee | w3c | aes | Bruce Devlin - new
Contributing Author Bruce Devlin - new Click to read or download PDF
TVFutures. No More Comfort Zone - Get a Placement
Michelle Brown I have often heard that any chance of getting work in the television industry is based quite heavily on who you know, and whilst that might indeed be true, I’ve also come to the realisation that it may also depends on what opportunities you seize and how far out of your comfort zone you might be prepared to push yourself.
Tags: iss138 | portsmouth uni | creative careers | placement | Michelle Brown
Contributing Author Michelle Brown Click to read or download PDF
State of the Nation: Wings, Fine Coffee and Fake Nudes
Dick Hobbs - new One of the many attractions of this time of year is that I get to meet with my fellow judges for the IBC Innovation Awards, and see what the industry sees as the most important, most forward-looking projects of the day. For me, this says what the key talking points are going to be in September, far more eloquently than the endless press releases from vendors which are already tumbling into my inbox.
Tags: iss138 | ibc | smpte 2110 | deepnude | cisco | Dick Hobbs - new
Contributing Author Dick Hobbs - new Click to read or download PDF