In this post I explain why some firms charge much less and others a lot more. So before you jump at the lowest bid, make sure you are not going to also end up with the lowest quality production along with that low price tag.
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Why is there such a range between the rates different video companies bid for the same project?
Sometimes when I’m asked to place a bid for a project the client will tell me that they’ve got companies bidding that are way higher in price, some that are near mine, and companies that are way lower. Why is there such a big disparity between the pricing? Well, there’re several factors involved when a company projects how much a video is going to cost. One of the things you really need to examine is – are you comparing apples to apples or are you comparing apples to oranges? Now, what do I mean by that? I’ll tell you.
I’ll use an analogy to explain. Just because a car has four wheels and four doors and is black, is it going to cost the same as every other four wheel, four-door black automobile? Of course not. There are quality differences to consider, options, styling, manufacturer’s reputation, and a host of other factors that affect the price of the automobile. You wouldn’t look at a four-door Fiat sitting next to a Mercedes-Benz and say “Oh look! These are exactly the same and the Fiat is sixty thousand dollars less! Let’s get the Fiat!”
Video production is no different. Different production houses have different levels of equipment, experience, reputation, style, expertise, etc. and all of this will affect how much it cost to hire these firms. Does every lawyer cost the same as other lawyers? Every accountant? Even doctors? Of course not.These and other professionals have different levels of skill set, talents, reputation, and other factors that affect their rates. And, simply put, the superior performers charge higher rates. If you are on trial for serious crime you did not commit and your life is on the line I don’t think you’re going to be hiring the cheapest lawyer you can find. You know that all lawyers are not the same. Therefore expect that in the video production business different people will have different levels of skill, experience and talent.
Resources also affects video costs. A fellow with a camera and a tripod standing at the back of a conference room filming a presentation certainly will not cost the same as a production requiring dollies, lights, camera cranes and other technical gear. Neither will your production look the same. On the other side of the coin is that a company that has a studio, and a large crew of professionals on staff will not be able to price in the same market as a smaller more mobile firm. Like CinematixHD. So they will be higher. But in all honesty there will be projects that they can handle that would be outside our abilities.
Bottom line is that in the production business you are likely to get what you pay for. Determine your needs and then find a company that can deliver on them. Maybe you don’t need a Mercedes and a Fiat will do. If all you need is simple videography skills of a camera and tripod and a fellow to hit the record button, then we’re probably not right for you. You can find inexpensive videographers to fit your needs. Also if your production will be really complex requiring an army of graphics and animation staff, in other words you need Formula One racer! Then you’ll need to go with a larger firm. But if you need a professional video that looks like film, that portrays your company in a polished and professional way that drives sales and revenues, then give us a call.
Cinematographer & HD Pro