My spouse and i read somewhere a long time ago that what you are selling is merely worth what someone more is willing to pay. Some people might want to00 pay $50/hr for your video production services, and some will be correctly happy paying $250/hr for the same service. Of course, the customer has to perceive that they are getting good value for dollar. live event video streaming
When I actually was in the marriage online video production business, I determined to target affluent households. These were willing to pay upwards of $3000 to $5000 per video although the middle- income people were typically not offering any more than $1,5k for the same services. There was literally absolutely no difference between the amount of hours or the quality of our product. (I of course sensed our videos were always worth the $5000. I simply had to find the right customer that found the value the same way Used to do. )
In the corporate video business, large companies will typically pay several thousand or tens of thousands more for the same services as smaller businesses. Little businesses will micro-manage every penny but not want to pay more for nearly anything, whereas larger businesses will typically improve the scope of a project while you are focusing on the task, resulting in a more profitable project and overall relationship.
I think finally, it boils down to your level of assurance with your skills and the value you can create for a consumer. Those of you who would like to thrive in the future, rather than just surviving, try raising your rates across the board by 10%, 20% or even as much as 35%. Will be you worthwhile? I think so. In most circumstances, clients won’t even notice the difference.
The your who do will understand if you position the rate increase by declaring “In order to better serve you, I need to increase our rates. New equipment, technologies, work force,, labor force, etc. are so that it is necessary to raise rates. inches
Whatever or nevertheless, you position it, just make sure it makes reliable business sense as to why you are increasing your rates. You might lose a few clients, nevertheless the one’s you keep plus the start up business you will get under your new rate structure will make you a lot more money with less effort overall. Proceed ahead. Raise your rates on all upcoming assignments. Once you have success this, you’ll never look back.
One other way to start out off on the right monitor is to modify your payment terms. A few years back, I had fashioned trouble getting clients to pay on large projects in a reasonable amount of time. The actual result was that We were broke with around $50k in receivables that never seemed to come in when I needed it. The remedy: Each of our contracts now call for a 50% deposit at the beginning of every project with the balance due after completion and delivery.
This has significantly improved my monthly earnings but a few clients have adapted to my conditions with no problems. It is crucial to realize that your clients expect YOU to tell them how to get your services. Certainly not vice versa. We cannot walk into Wal-Mart and tell them that we’re going pay them net forty-five but that we need the coffee brewer today can we?? Why should we be in charge of financing fully of a client’s task until it finally is complete or until they want to pay?
Several larger businesses have documents payable policies that you can’t circumvent no subject what, but my experience has been that however, most significant of accounts can pass your invoice through quickly if necessary. The trick is to be sure that they realize that “this is your policy on assignments greater than $3000 or whatever amount you want to set. ” Once you start projects with half the cash in your pocket, you feel good about working on the account, the customer gets better service and they are generally motivated to finish quickly because they have already invested.