Charge rates for a corporate video

[extremekicks]

I got a potential gig to do a 5-10 min corporate video ( installation of fittings) which will have a voice-over added to it along with text and logo at the begining and end.

1 day - 2 cameras ( Canon XL2 & Canon GL2) with light set up. ( 2 man crew) Figure this will take 1 hour to set up and do the shoot if all goes well. Probally will end up being 2 to 3 hours. Voice over also included.

Edit / Post Production - 2 to 3 days. Give myself longer?

Client is writing script. And will do a voice over the day of shooting which is on the 1 day info.

I'm thinking the total will run about $1,500.00 is this standard? or em I shorting myself?

Brian

[Black Lab]

At $50 an hour that is probably close (that's what I charge). But what's the going rate in Philly? Probably much higher. But then you have to consider that you are just getting into the business, so it's hard to justify charging what somebody with 10 years experience does.

You need to charge whatever covers your cost plus gives you a nice profit, without undercutting the competition too much. You don't want to tick them off, you may need their help on some future project.

Be flexible. Work with the client if the balk at the $1,500. BUT, I would ask for half up front. Nothing worse then taking the time to shoot and edit and then have the client stiff you (a contract wouldn't hurt). $750 in your pocket is better than nothing.

Good luck, and post it when you're done.

[extremekicks]

Quote first, if they agree then contract with half up front.

I will keep you posted on how it goes. It's good being an IT consultant and getting into alot of businesses. Ha an IT geek that can breakdance and loves video.

[DVDDoug]

I agree that $50 an hour or $1500 is reasonable. (Auto mechanics and plumbers charge more than $50 an hour.) I'm sure a lot of companies pay much more, and a lot of people do this stuff for free as a hobby!

Your time estimate seems reasonable too. But, does your client understand how much time it's going to take to produce a short video?

It's up to you (and your client) if you want to quote a fixed price or an hourly rate. Another option is an hourly rate with a "not to exceed" limit.

On the corporate side, it's usually much easier to issue a fixed-price purchase order, than to approve an hourly contract. It's also unusual for companies to pay anything in advance, and it might require special approval to get an advance check from accounting. In fact, the standard is to pay 30 days after receiving the invoice. Most "real companies" are honest, and they do pay their bills. But, some companies also "stretch out" the 30 days. And on the other side, most vendors check-out the customer's credit rating before extending the standard 30-day credit.

You can get into a trap with a fixed price. The shoot can take longer than you expect, and they might keep you waiting around. If you are paying your assistant/partner by the hour, that's real money out of your pocket. And, they might ask for extra editing and "tweaks" after you think you're done.

When I did some hourly contract/consulting work, I added a couple of extra lines to my invoice showing hours (or fractional hours) for "On-site not billed", and "Courtesy time". That was just to assure the client that I wasn't "nickel and dimeing" them for every little thing (like a lawyer ) or charging them when I was standing around chatting, etc.

[Black Lab]

On the corporate side, it's usually much easier to issue a fixed-price purchase order, than to approve an hourly contract. It's also unusual for companies to pay anything in advance, and it might require special approval to get an advance check from accounting. In fact, the standard is to pay 30 days after receiving the invoice.

I disagree. If I am having construction work done I have to pay the contractor 50% in advance, presumably to cover his cost of materials should I change my mind. Also, if I want to have an event at the local social hall, I have to put down a deposit, presumably to cover the cost of the food should I cancel. Asking the client to provide a deposit protects you for the time you spent on location, should he cancel.

Most "real companies" are honest, and they do pay their bills. But, some companies also "stretch out" the 30 days. And on the other side, most vendors check-out the customer's credit rating before extending the standard 30-day credit.

I work at a chamber of commerce. All of our members are "real companies", and most do pay their bills, but you would be surprised at how many don't, especially with this economic climate. And if your client "stretches out" the 30 days for payment to 60, 90 or 120 days (as is the "norm" today - not very many pay in 30), what does that do to your wallet and the vendors you must pay?

If the client balks at a deposit, I would balk at doing work for them. But remember, everything is negotiable!

[skier-hughes]

You need to set aside some time for making minor changes to the movie when the client has seen it for the first time.
Also, ensure your contract is for editing the video to the clients request.
If the client then changes their mind and wants major changes to it, this is costed seperately.
If your contract just says to provide a video to the clients liking they could get you changing it daily at no extra cost to themselves.

[DVDDoug]

I disagree. If I am having construction work done I have to pay the contractor 50% in advance, presumably to cover his cost of materials should I change my mind. Also, if I want to have an event at the local social hall, I have to put down a deposit, presumably to cover the cost of the food should I cancel. Asking the client to provide a deposit protects you for the time you spent on location, should he cancel.

The 30-day payment standard is an industry/corporate standard, usually between businesses that have an ongoing relationship. Of course it's not standard for individuals, and it's not standard in the construction industry either. If you're doing wedding photography/videos, you should get an advance.

I'm not saying it's unreasonable to ask for an advance. I'm saying it's a bit unusual, and it might require special approval and deviation from the standard corporate procedures. I'm just trying to point-out that if the client balks at advanced payment, it might be because he's is trying to "get going" and avoid corporate "red tape".

I work for a small company, and I can "buy stuff" without any higher-level approval, as long as I follow the normal procedure. But, I would have to get approval to pay in advance, or to order something C.O.D. I ordered somthing C.O.D. at a previous job once, when we needed it ugrently and we didn't have an account with the supplier. The purchasing manager freeked out, and said "Oh no!, You can't do that!" I thought his reaction was really funny, because we really needed the item. (If I recall correctly, the order was delayed while we set-up an account with the supplier.)

In every company I've worked for, the normal purchasing/accounting procedure is this:

1. Purchase Requisition submitted to purchasing by a manager/employee. (The manager or employee usually has preset limits or a budget.)
2. Purchase Order issued to vendor from purchasing. (In this case, the contract would be attached, and the P.O. is your contract/approval to get started making the video. The P.O. number is the "key" to being paid.)
3. Vendor provides the product or service, and then invoices the customer.
4. The accounting department simply matches the invoice, the packing slip (to confirm delivery of goods) or approved/signed-off invoice (to confirm delivery of services), and the P.O. If these 3 documents "match up", they pay the invoice (in about 30 days.)

Where I work, I'd guess that about 90% of purchases/payments follow that procedure. Some common exceptions are raw materials for manufacturing where the P.O. originates in the purchasing department (without a requisition), monthly rent and utilities, lawyers & outside accountants on retainer, corporate credit cards, and petty cash. Contractors like plumbers or electricians might be paid on the spot, as soon as the work is completed.

I'd guess that less than one percent of our payments involve advance payment or other special arrangements. I've never actually heard of a situation where a consultant or temporary-contract employee was paid in advance.

Yes, the supplier/vendor takes some risk with this arrangement. Some customers don't pay on-time, so there's usually somebody in accounts receivable who's job it is to call-up and "bug" late-paying and deadbeat customers! As a sole proprietor, you would really like to avoid this risk, and get an advance payment if you can!

[Black Lab]

Doug, I agree that 30 days to pay is the corporate "standard". But in my 25+ years as a "bookkeeper" I would be surprised if half the companies I have dealt with live up to the standard. Right now the norm is 60-90 days.

Digital Juice has a forum very similar to this one, full of very knowledgeable people willing to help one another. The major difference being this forum is visited by mostly hobbyists, while the DJ forum is frequented by many professionals. On their forum they have a "Your Business" thread that discusses topics such as this. All I can tell you is the consensus of the pros is to at least get a deposit first.

[extremekicks]

Looks like the project will run for about $2,000.00 and the client agreed to pay. This is just an estimate it may cost a little more or maybe a little less we will see.

[Black Lab]

Cool.

[extremekicks]

I ended up getting $3,000 for the gig. Moving on to others now

[Black Lab]

Excellent. If you get real busy I know where you can find a videographer/editor up in Pottstown to help you out.

[extremekicks]

Lab mst def your right up the street. I will keep you in mind for sure.

They have me lined up for another and this one will pay even more.

[Black Lab]

You know where to find me!

[Macadoon]

Hi... what an interesting thread ... I have been approached several times recently to film weddings, with two cams and an operator each. I kinda wondered what price I should charge, being as I got the requests after filming a friend's wedding gratis and getting excellent results.
Andy M