Many people get caught up on video production pricing issues. With the ease at which we can retrieve information these days there is a certain mentality that one needs to get the absolute best price and value for their project.
In theory this is great, but it can also be misleading when it comes to video production and post production projects.
Investopedia states “Perceived value is the worth or merits a customer ascribes to a product or service. Usually, customers are unaware of the factors involved in pricing a product or service, such as the actual or estimated costs of production.”
For example, you would like to get a bid on video editing. Video editor “A” sees your project and estimates it will cost $750.00 to complete the video piece. This seems reasonable and you give them the go ahead.
Video editor “B” sees your project and estimates the project will take four hours to complete at a rate of $185.00/hr. At this rate its basically the same as the first bid – $740.00, but the perceived value in your mind of paying editor A or B is different.
The price of $185.00/hour seems like a lot. Now let’s throw in video editor “C”. This editor quotes you a rate of $50.00/hour and is not sure how long it will take them.
At $50.00/hr. this sounds great, so you opt for editor C.
What you don’t know when you make this choice is what equipment these editors are using, what plug-in options they have, the speed of their computers, experience levels and on and on.
It turns out video editor C is using an old laptop with old software. C can’t run the latest and greatest editing software because the laptop computer in use is too old and slow. Video editor C finishes the job in eighteen hours for a cost of $900.00 and the project does not look nearly as good as it would have if editor A or B had completed the project because their equipment was top of the line and offered better quality with more options.
There are a lot of factors that go into creating a great looking video.
Don’t get caught up in the lowest hourly rate as the deciding factor – perceived value can be your own worst enemy. Trust professionals with proven track records and you will more than likely come out ahead every time.