
Originally Posted by
CamGirl
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!