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Taking Care of Business
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Old October 6th, 2004, 10:55 PM   #1
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Join Date: Jun 2004
Location: Washington, DC
Posts: 84
Sticker Shock

Just wanted to see how you guys handle 'sticker shock' when presenting a quote to a client.

Frequently I pitch to large companies that 'have been wanting to produce [some sort of video product] for a while', such as a corporate video or a sales video, etc. I spend hours finding out exactly what they want and getting them all excited about the project. Then I provide a price quote and ... screech! Though my quote is fair or below market value, the client is expecting something MUCH less. For example, I quote $25K while the client is expecting $2K. Past companies have been medical service providers, pharma. companies and so on, so it's not that they can't afford it. Many companies are attracted by my demo reel and say things like, "We want something like that" -- so I feel that my demo reel package projects an accurate image of my company. They have even picked me out of several, saying that my demos stood way out of the rest.

I find that most companies are one extreme or the other -- they either expected a video production to be a million dollars and therefore never persued it ... or they expect it to be practically nothing.

Have you guys ever encountered 'Sticker Shock'? How do you handle it?

Thanks in advance for your input.
Daniel Stone is offline   Reply With Quote
Old October 6th, 2004, 11:47 PM   #2
Join Date: May 2002
Location: Vallejo, California
Posts: 4,049
All the time.

I usually ask them to multiply what they make per hour times the number of hours I estimate the video will take to make plus add in the expenses. They quickly understand.

Or I ask them to multiply the time by the labor rate of their auto mechanic.

Stops them every time. Doesn't necessarily make them buy if they have a budget crunch vs just dreaming it would be a dollar two ninety eight.
Mike Rehmus
Hey, I can see the carrot at the end of the tunnel!
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