Increase your prices... vital for growth


Den Lennie TV-Bay Magazine
Read ezine online
by Den Lennie
Issue 105 - September 2015

Increasing prices is such an important part of growing your business. If you want to invest in the latest gear then you have to be charging enough to allow for continual investment The easiest and most efficient way to achieve this is to reposition you and your business away from a cheap commodity product to a desirable and premium priced service.

Low cost, high quality and speed cannot coexist, and the kind of clients you want to be dealing with are people who understand this.

Speed

Take something as simple as ordering a product from an online retailer. If the item is in stock then you can usually select a variety of shipping methods, all priced accordingly. If you want that item the next day before 9am, then the shipping option for this is likely to be the most expensive compared to the standard shipping, which takes two to three days. What this demonstrates is that if you want the item quickly, you pay a premium price. If you dont need it right away, then you choose a more economical shipping option. Speed and efficiency is more expensive than slow and economical.

If you apply the same principles to your video productions, you can charge a premium for post-production if the client wants the item delivered quickly. Theres no reason why you cant charge a 50% additional premium on your edit rates for a quick turnaround.

Quality

Lets imagine your client would like a very high production promotional film that they want to have a cinematic look and feel to. This will require you to work with the gaffer and additional lighting, perhaps a focus puller, a grip, and other production team that might include actors, make-up people, and a costume department. Your DP might choose a camera format like the Red Epic, Arri Alexa, or a Sony F55 with cine lenses and associated camera package. Its also likely it would take one or two days to shoot in a single location, taking care with every single frame. However, if the client wanted this kind of high quality production, but only wanted a three hour shoot, then there would be a disconnect from the amount of time required to the quality of the end production. If they want quality, it takes time and money. High quality is generally associated with the addition of the best resources to guarantee the consistency of output.

Low cost

You never want to be associated with cheap. There are plenty of videographers out there working with cheap equipment and the bare minimum of gear, fighting over who can do the job the cheapest. You never want to be in a race to the bottom. If you find yourself in a position where youre being price matched with another company, then the chances are youre dealing with the wrong kinds of clients. You probably havent got a strong enough relationship with that client either.

Priced-based buyers are not interested in relationships, they are only interested in getting the cheapest price and that is not a business I recommend you focus on.
If you are too cheap your clients will not take you seriously and it gives out the wrong message. Increasing your prices to a point where youre reassuringly expensive gives you the pleasure of dealing with non priced based buyers.

Be reassuringly expensive

Raising your prices will feel uncomfortable; in fact, when you deliver your costs to a client, if you dont feel a little uncomfortable, then the chances are youre not charging enough.

Also, never give your prices verbally. The danger of giving pricing this way is when you announce your price, the line goes silent and you lose your bottle and risk saying something daft like, but if its too much, I can do you a deal. Be proud of your prices; if youre pricing correctly you can dedicate your time to the client project and give them a premium service.

A good friend of mine runs a very successful coaching and consulting business and he works with CEOs and senior managers across blue-chip companies. A couple of years ago he bought himself a Bentley Continental, with cash. I think the car cost in excess of £150,000. For many people, that kind of money is out of the realms of possibility. However, even if you have the money, when you buy that car from Bentley you have to wait. Premium brands often employ scarcity in their sales process as it helps to further enhance the exclusivity of ownership. Plus, when you do order the car it is hand built to your specification and the person who builds it inscribes their name within the chassis. Then each year, when the car needs a service, the engineer who built the car comes personally to the home of the owner and services the car.

Bentley is a premium brand, and my friend is happy to pay the higher prices to have the person who built the car come and service his car. He has the means to pay for such a car and such a service. He doesnt have to wait in line at a garage, its all done for him which allows him to focus on making money in his own business. He also travels everywhere in either business or first class, and only ever invests in the best products and services because he likes the fact that buying from premium priced brands delivers him a premium service.

Dont ever underestimate the value clients put on dealing with a company that is focused on high quality and service. Many are willing to pay more than you think for video production. You may not feel your business is currently in that position. Thats okay, reading this book and applying the principles I share with you will begin to move you more decisively in that direction.

Tags: iss105 | tips | industry | hints | advice | how to | studio | pricing | charge | cost | money | expense | broadcast | Den Lennie
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Submitted by Tama Berkeljon Read this article in the tv-bay digital magazine
Media Production Show and other news
Duncan Payne So, the 2nd Media Production Show has been and gone. Hands up who went to Islington by mistake? I know at least two people who did. Their secret is safe with me! For me, the sign of a great trade show is when I come away really enthused about an innovative use of existing technology or a brand new product. When I find something that combines both these things, then I'm a very happy man.
Tags: iss126 | adamantean | finance | leasing | mps | ptz | sam | Duncan Payne
Submitted by Duncan Payne Read this article in the tv-bay digital magazine
Ad servers and switching solutions
Peter Blanchford Hardware-based ad servers and switching solutions have been around for a long time and, broadly speaking, do the job just fine.
Tags: iss126 | starfish technologies | ad server | ts splicer | ts switch | gop | Peter Blanchford
Submitted by Peter Blanchford Read this article in the tv-bay digital magazine
Implementing an IP workflow
John Smith -new The eventual move to incorporate IP into your infrastructures is an inevitability. However, with justified concerns about interoperability and uncertainty about which vendors are best placed to help organisations achieve their IP media networking and content delivery goals, is it any wonder there is hesitation about moving forward? Broadcasters very wisely, don't want the pain without the gain!
Tags: iss126 | medialinks | ip | mdp3020 | gateway | John Smith -new
Submitted by John Smith -new Read this article in the tv-bay digital magazine
State of the Nation - part 1
Dick Hobbs - new Imagine you are the director of the Champions League Final, knowing that 200 million people will be watching your every decision. Or you're directing the Eurovision Song Contest. Or even, to be honest, the Tunbridge Wells local news opt out. And at live minus 30 seconds, all the screens in the monitor wall suddenly go black then show a demand, in broken English, for 300 Bitcoin.
Tags: iss126 | iabm | british airways | ransom | bitcoin | cybersecurity | cots | Dick Hobbs - new
Submitted by Dick Hobbs - new Read this article in the tv-bay digital magazine
TV Futures
Jane Lawrence When I was younger my dad used to encourage me to be a Jack of all trades and a master of none. One of those clich© things parents hand down to their children. However, as I have grown and gone through different stages of education I have found this little piece of wisdom has followed me. Don't get me wrong, being amazing at one thing is a great skill to have, but for me having a good understanding of everything is also vital.
Tags: iss126 | tvfutures | ccitv | portsmouth | preditors | Jane Lawrence
Submitted by Jane Lawrence Read this article in the tv-bay digital magazine
Monetizing OTT
Oliver Botti Competition in the TV arena is hotting-up for traditional broadcasters with even ESPN, a strong-hold of sports TV, seeing a reduction in subscriptions with the number of American homes paying to get the service declining by more than 12m since 2011. With Mintel reporting that the subscription video streaming market in the UK is due to exceed revenues of GBP 1 billion (EURO 1.37 billion) by 2019, and account for 38% of the total UK video market, traditional broadcasters clearly cannot afford to turn a blind eye.
Tags: iss126 | ott | moentizing | fincons group | Oliver Botti
Submitted by Oliver Botti Read this article in the tv-bay digital magazine
Mobile internet connectivity in the field
Bill Nardi Mobile Internet connectivity is critical to the success of remote news crews. Whether they're doing a reporting assignment for news, sports, or live events, they need a strong and reliable Internet connection. To have an edge over their competition and get content to air faster, crews need to be able to work just as if they were in the studio, but from the field.
Tags: iss126 | dejero | mi-fi | gateway | wi-fi | cellular | Bill Nardi
Submitted by Bill Nardi Read this article in the tv-bay digital magazine
IP Based Remote Production
Ed Calverley Over the last few years Suitcase TV has been getting involved in remote production at the software layer, and I want to talk about some of the ways we have been getting involved in remote production, including a specific trial that we did last year with BBC Sport for the Euro 2016 tournament in Paris.
Tags: iss126 | remote production | IP | jt-nm | smpte 2110 | suitcase | Ed Calverley
Submitted by Ed Calverley Read this article in the tv-bay digital magazine
Live event streaming solutions
Lorna Garrett It's summer! Just those two words alone are exciting. Combine them with words such as "music festival" or "sports" or "travel" and you have yourself a summer to remember. To ensure you have the hottest summer yet, consider live streaming your event ¦ wherever it is.
Tags: iss126 | garland partners | gpl | liveu | streaming | lu600 | liveu solo | Lorna Garrett
Submitted by Lorna Garrett Read this article in the tv-bay digital magazine
360 degree video storage requirements
Dave Frederick Swim with bears, run with the bulls, get a pads-eye view of a rocket launch: 360 degree video production, also known as cinematic VR, makes these and many other bucket list-worthy events more accessible than ever. The format has evolved into a powerful storytelling tool, and one that changes not only the way in which visual experiences are shaped, but also the way in which media consumers perceive and interact with video content.
Tags: iss126 | 360 degree | vr | storage | vfx | ssd | san | nas | quantum | Dave Frederick
Submitted by Dave Frederick Read this article in the tv-bay digital magazine
Audio at 750mph
Sam Ashwell London-based 750mph has recently completed the finishing touches to a massive refit and upgrade of this audio post stalwart's Soho HQ which will bring even more, newly immersive, audio online.
Tags: iss125 | blackmagic | bmd | 750mph | audio | 3daw | 3d audio | dolby atmos | Sam Ashwell
Submitted by Sam Ashwell Read this article in the tv-bay digital magazine