If you don't mind me asking, for a $2500 project, how much shoot time is typically involved? How long spent editing?
I don’t mind at all. I think pricing is a major challenge for everyone especially early on.
$2,500 is typically my half day rate which I consider 5 hours. For the right project I might let that go beyond 5 hours. All my work is either testimonials (typically talking head and b roll) or commercial ads. My editing time is usually 5 - 20 hours depending on the complexity of the video.
I used to charge $150/hour but then clients wanted to haggle and argue about how long they think it SHOULD take me. For shoots it was a nightmare. I would quote the hourly rate and how much time I needed and they would argue that they don’t have that much time on their schedule to commit and would try to force me to do 5+ hours of work in 2 hours. Once I went the half day and full day rates those conversations pretty much went away.
Now, to pull back the curtain completely, I hardly ever break down the rate to clients. I end up quoting them a project rate but internally I calculate that project rate based on my estimation of half day and full day rates.
What I've seen often is that people will struggle with the idea of charging more for their service because they think no one out there will pay it.
I was blessed to have a high level client pull me aside one day back when I started and tell me that my pricing was going to put me out of business. At the time, we landed the client through a friend of a friend and the client was basically throwing us an opportunity to test us out. We did the shoot for $600. When the client told us the pricing was going to put us out of business I got scared and thought we priced it too hight; Instead he told us it was way too low and that companies doing our level of work for them in the past charged them several thousand. He went on to explain if big clients already have the expectation that quality work costs a lot and you quote them a low number, it doesn't matter how good your work is, they're going to assume you aren't as good as the more expensive option.
So the question I get most of the time is "how do I increase my prices? How do I offer more value so that people are willing to pay more?"
For me, the answer was take the time to do everything correctly; What I mean by that is a proper production should have pre-production, production, and post-production phases. Most people just quote via email, agree to a shoot date, and edit. Today, my productions start with a zoom or in person meeting to discuss what the clients wants and why they want it (what their goals are). I take the time to listen and offer recommendations to achieve their goal and set expectations. I don't send quotes in an email; I send a full proposal presentation that breaks down who we are, why other people have chosen us, it includes an introduction video, some client testimonials about us, and then I get into breaking down their project scope. The last page of the proposal has the price and our terms of service. To move forward they have to sign that document and pay a 50% deposit. Once they sign and pay, I schedule a meeting with them to begin pre-production (site visits, messaging, rough shot discussions, schedule limitations, ward robe, participants, etc.). I then put all that information into a production book that I present to the client that includes every detail you could imagine to walk them through the shoot. After the shoot, my turnaround is 2 weeks MAX. They look at it, (99% of the time I don't get any edit requests because I'm so thorough with my pre-production) they tell me they love it and I send the invoice via Quickbooks (no cash app or paypal- why? because Quickbooks organizes all my income and expenses but also because it's another layer of perception for the client that they are working with a more serious business and not "homie with a camera and a gimbal starving to take anything to make ends meet).