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    Communicating with Cheap Clients
    Hello - I am really hoping to get your advice!

    I have a service-based business and I have set my pricing to charge by the day. This is common in the film industry. I am a video editor and while creating a video, it takes time to organize footage, find all other creative elements and piece the final video together. Most the time, a custom short video (if the video footage already exists) will take about 16-24 hours to complete. And that is FAST!

    I used to work for a company creating marketing materials for them making $20/hour. My current day rate for my business is $400 a day (which is insanely cheap! Most people I know charge $600-$800). But I am giving them a deal and charging $300 a day. I had told them that I could probably knock out most the videos they want in 1 day with the exception of 2 videos. But I also told them that this is just an estimate. Sometimes things get extended or delayed.

    I got the response (even though I've already had this discussion in person) that they were hoping I could do $300 a video!!!! That's insanely cheap. So let's say a video takes me 12 hours to make. If I agreed to what they are proposing, I would only make half of what I proposed. This client seriously is under-estimating what it costs to create a video.

    Am I crazy? I'm really not good at confrontation and am not really sure how to respond. I'm lacking courage to stand behind my price - but I know 110% that I'm worth it. This is my only client at the moment (since I have a previous relationship with them) and I really need to make sure I can retain them since they may likely refer me to many potential clients going forward. What would you say in response?

    Thanks!


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    Quote Originally Posted by CamGirl View Post
    Hello - I am really hoping to get your advice!

    I have a service-based business and I have set my pricing to charge by the day. This is common in the film industry. I am a video editor and while creating a video, it takes time to organize footage, find all other creative elements and piece the final video together. Most the time, a custom short video (if the video footage already exists) will take about 16-24 hours to complete. And that is FAST!

    I used to work for a company creating marketing materials for them making $20/hour. My current day rate for my business is $400 a day (which is insanely cheap! Most people I know charge $600-$800). But I am giving them a deal and charging $300 a day. I had told them that I could probably knock out most the videos they want in 1 day with the exception of 2 videos. But I also told them that this is just an estimate. Sometimes things get extended or delayed.

    I got the response (even though I've already had this discussion in person) that they were hoping I could do $300 a video!!!! That's insanely cheap. So let's say a video takes me 12 hours to make. If I agreed to what they are proposing, I would only make half of what I proposed. This client seriously is under-estimating what it costs to create a video.

    Am I crazy? I'm really not good at confrontation and am not really sure how to respond. I'm lacking courage to stand behind my price - but I know 110% that I'm worth it. This is my only client at the moment (since I have a previous relationship with them) and I really need to make sure I can retain them since they may likely refer me to many potential clients going forward. What would you say in response?

    Thanks!
    Sadly I know exactly what you are or were going through. I have the same issue at times. But I come to realize that I am running a business, a business to satisfy a need, to make the client happy and to make a profit. If you let your clients dictate your prices then you may as shut down now and not worry about having your own business. There are ways to confront the clients in a nice way but if they insist or get to be too much, you do not have to take their request. You can turn them away. It isn't fun but it is your business and you need to have it as stress free as possible. And not dealing with complicated customers is the 1st step. Set your price, if it is and estimate, work on making it a final pricing as soon as you can before you start the project so they have the choice to stay or run.


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