So…you’ve started to get the hang of this whole social video creation thing, and you’re beginning to work it into your repertoire of services. But even with the video skills tucked firmly under your belt, the question remains:
How much should you charge for your videos?
For many businesses and marketing consultants, this can feel like totally uncharted territory. The good news is that a lot of the time, it’s really not as alien as it seems. If you’ve priced one of your offerings in the past, you’re in better shape than you might think that you are. In this article, we’ll go over the steps to set prices for your marketing videos that are fair for both you and your customers.
One thing we want you to bear in mind as you read this article, and as you make decisions on marketing your offerings, is to price your videos based on their value to your client, not on what they mean you. If your clients could create their videos themselves, they would do it. They’re hiring you because they can’t, and you can. Your ability to confidently create a marketing video does no make it easy. Don’t sell yourself short.
With that out of the way, let’s get started!
The first thing to do is to find your baseline. What services do you already offer to your clients? If, for instance, you maintain social accounts, post on a regular basis, create content, work with them on strategy, craft newsletters and mailing lists, and other duties of that nature, you’ve likely already set prices based on the effort and expenses associated with those services.
Regardless of the offerings you use as your starting point, it’s important, for your own sanity as well as for your clients’ understandings, that your costs are grounded in an established view of how valuable your time, effort, and output is. Throwing a price point at the wall and seeing if it sticks is a good recipe for missing the mark and either undervaluing your own time, or overcharging to the point of turning clients away. A price that you set based on existing standards is a price that you can feel confident in, and defend if need be.
Now that you’ve taken stock of your existing services, the next step is to figure out how they compare to the video creation process. This can vary drastically from person to person, depending on overhead and existing skill sets you’re bringing to the table. If you need to rent or purchase equipment, that needs to be taken into account. If you’re working from an office space you pay for, that’s overhead. If you need to hire a videographer or photographer, those are certainly costs which you can’t be counted on to shoulder. If you’re including a person in the video will hair and makeup be required?
Remember, your client is hiring you to create a video because they’ve decided you’re the best person for the job. Be accommodating but not at the expense of profitability for your business. The video creation process itself may also wind up being a significant time expenditure, and your time is valuable.
Beyond your amazing personality and portfolio of work, there’s a reason that your client has hired you to create a video. Potential customers increasingly expect brands to utilize video in their marketing materials, especially on social media, and you have the skills to make that happen for your clients.
According to a recent Animoto survey, 85% of small businesses are creating videos as part of their marketing strategy, and 64% of people say that a Facebook video influenced them to make a purchase in the past month. The shift in the consumption habits of the social media user mean that modern businesses need to market themselves with video. You are the conduit through which your client is doing so.
The time commitment is only one part of the equation. Your final product is no ordinary post and it should not be valued as such. For example, in addition to the say, 70% more time a video takes to complete than a standard social post, you also must factor in that the video is worth 70% more to the client. We’ll say it again, your client has requested video for a reason, and the final product is not 1:1 with other one-time offerings you provide.
Regardless of whether you’re basing your prices on existing services, or if you’re just getting started, we understand that it’s still a challenge to set number values on an entirely new offering, especially as you build your video portfolio and client base.
Offering different price packages can be advantageous on multiple fronts. First, you’ll be able to gauge what your clients generally expect from you in terms of input, such as whether you’ll be capturing all the visuals and writing the copy or if they’ll be providing those things to you. Secondly, you’ll get real, actionable data on which price points your clients are comfortable paying for in relation to the videos they receive.
The “good, better, best” model is a pricing structure used across many industries that, as the name suggests, offers customers the choice from among three escalating packages in terms of quality/quantity and of course, price. These packages are designed to provide three acceptable offerings, but in general to lead potential customers to choose one of the more expensive options.
These packages, like prices, will vary for many of you, but here’s an example of a “good, better, best” structure that you could apply to your business:
Don’t do it for free.
It’s going to be tempting as you work to get your business off the ground to offer up your videos free of charge. Don’t devalue your product. A video is not an add-on. It’s a valuable marketing material, and your client needs to understand it to be so.
If you offer an initial discount, reserve it for a select number of trusted, existing clients, and make it clear that it’ll be a limited time discount as you build up your body of work. New clients should be brought on board at the rate that you expect to maintain for the foreseeable future.
Ultimately, setting your prices will involve a certain amount of estimation on your part, but the important thing to bear in mind is that you are offering something of value to businesses, and the quality of your work is worth spending on. There are contextual factors, like competition, experience, areas of expertise, and clientele that’ll vary from business to business, but the steps we laid out here should get you on the right track toward establishing prices that you can feel confident in.
To discuss this further with other people who have gone through the very same struggles and mental hurdles that you have, we invite you to join our Facebook group, the Animoto Social Video Marketing Community, and if you have any questions, let us know in the comments below!