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Fortune 500 company wants to hand out our DVD at their conference
My partner and I produced an eight-minute video about a new Communications Center in Washington, DC. At the opening of the Center, someone from a Fortune 500 communications company saw the piece, liked it, and approached us about showing it at one of their upcoming conferences and including it in their little tote-bag give-aways.
What would be a fair price to ask for this kind of use?
Thanks.
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11 Replies
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The fact that they’re coming to you with a budget rather than asking you to give it away for the publicity (“Just tuck a business card in there!”) is a joy and a wonder. My teensy experience with big companies says not to expect the money truck to back up to your door and start dumping bills on your head just because it’s a big company. Budgets are tight all over.
Even if they’re spending a million dollars to put on a one-day conference (I’ve seen it happen), the budget for the gift bags won’t be anything like that.
My approach in these scenarios has been the same as it is with other clients. “What’s your budget? What kind of packaging do you want? What quantity? Give me as much information as you can so I can help you make the choice that will work best for you.”
Even if they say, “I have no idea,” then you still the need the info before you can make a proposal. In any case, it should include a range of options, each of which covers you of course.
It rarely works out exactly on the first pass. But I’ve found that presenting some options and leaving the ball in their court helps. “The price breaks at 10,000 units, so with the color sleeve you want, it’s actually cheaper than doing the 8,000 units you propose. You could also save more with a clear plastic case and a full color label on the disk.”
Or whatever the case may be. No matter what price you come to, they’ll feel better about participating, and you can feel better about not pulling a price out of thin air.
FWIW…
tw
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Tim,
Thanks, those are some great tips. Would we then just add a 15% markup to whatever the duplication house charges? And what if they want to handle the duplication themselves– how much should we charge for the video itself?
Thanks again,
Michael -
Hmmm, that’s a tougher question. Any of you other biz whizzes have some ideas?
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[Mertzwiller] “And what if they want to handle the duplication themselves– how much should we charge for the video itself?”
As much as you can get…
Sorry to be a smart-aleck but that is the only answer that makes sense to me, as we do not have all the details nor do we understand the client, your situation, etc.
That’s what I would go for, the biggest check I could get them to write.
My apologies if that seems too nebulous but it’s the best I can do with the information at hand.
Best regards,
Ron Lindeboom
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Ron,
I’m sorry, but I’m not sure what other kinds of other details you’re asking for.
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At a minimum, you need to know how many units they are talking about. If they don’t know, then give them a range based on a quantity break from the replication house.
A 15% mark up does not seem nearly enough to me.
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They’re expecting 4,000 people to attend the conference.
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It’s unlikely they will want 4000 total. My experience tells me that these gift packages generally are reserved for vips or the first X number.
At least you have a number. Now it’s time to contact the replication house and get some pricing based on your quanity and packaging requirements.
Again, I don’t think 15% is nearly enough mark up. You need to look and at your real overhead and costs and the profit you desire. Also, I would not give them the option to purchase the video and make their own dupes. You want to control distribution of your work and maximize your income potential – right?
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This is good information. It’s much appreciated.
Thanks,
Michael -
If you have all the rights to the video, have been paid to produce the video prior and made your nut on that, then this re-purposed sale is gravy, no? Not to say you can’t make profit out of it – you reached a realm not many of us get to – reselling the same material with minimal expense.
I’d shoot for a minimum of 600 units, 30% markup on the dupe fees and a base of four dollars per unit on the minimum buy, discounting the per unit cost .50 for each additional buy of 200 units.
You may want to add handling/shipping/packaging fees if you’re looking to increase profit – only you and your accountant know what your bottom line is.
Cheers,
Frank Otto
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