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Fast and cheap business plan
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If you put ketchup on it, I’m afraid all deals are off.
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[Mark Suszko] “If you put ketchup on it, I’m afraid all deals are off.”
Ketchup is for kids — oh, and for prime rib and lobster.
Just kidding, Nick. ;o)
Nah, hot dogs should be mustard, chopped onions, sauerkraut (sometimes), sweet pickle relish (other times), maybe jalapenos (hey, this is California, after all), — but I always go for the cheap yellow mustard. I have never liked the brown stuff.
I know…sacrilege. Blame it on my Mom, she got me strung out on French’s at an early age and it is a habit that has carried over a lifetime.
They asked me about this when I tried to move to Chicago and they forbade me to move there — something about a city ordinance or something, they said.
Ron Lindeboom
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You make some great observations. I would only say that your boss had a point – as the business owner, he was presumably targeting lower dollar, higher volume work (which is a legitimate model) while you, being an artist with pride in your work, were trying to deliver higher quality work than his business model could sustain. It was a fundamental mismatch in needs – art vs. income – a mismatch that defines our entire industry. We are all prideful artists, so we accept lower pay and sloppy business practices in return for artistic satisfaction. On the other side, those who pursue business at the expense of the art are treated as greedy outsiders. Is either side right?
My studio has struggled over the past few years with this very issue. We can do very high quality work, and it’s a matter of pride for us. The end result is that we inevitably give our clients way more than they pay for, just because we don’t like doing work that reflects poorly on us. From a personal perspective it’s more rewarding, but from a business perspective it’s a slow atrophy that leads to death by a thousand cuts. The answer to this problem is simple. If you run a business, you have traded in your artist hat for that of business owner, and therefore have a duty to your employees and your personal finances to run the business well, whatever it requires, without crossing any ethical or moral lines. End of story.
Here’s two quick points I would like to add:
– For as long as I can remember, the realm of video production has been limited to those with the biggest of budgets, maybe the top 30% of companies out there could afford it. Clearly, the lower-budget clients of the world represent a huge majority, a vast underserved market. Now that production is getting so cheap, it only makes sense that most new business, the wild west, is going to be centered around cheap, fast video catering to these once ignored markets. Even if you and I choose not to pursue that business, it’s going to have a profound effect on us like it or not.
– Businesses, which by and large make up our entire customer base, live and die by return on investment. “Quality” means nothing to them unless there is a quantifiable, increased return on investment great enough to offset the risk of paying so much more for that quality. As consumers embrace user generated video, and the onslaught of video-mills lowers the bar, consumers will become desensitized and lower quality will become more and more acceptable in the marketing arena. Clearly, quality isn’t going to be something we can hang our hats on much longer.
Brendan Coots
Splitvision Digital
http://www.splitvisiondigital.com -
Clearly, quality isn’t going to be something we can hang our hats on much longer.
Yes I can certainly attest to that statement.
A client of mine shot two 15 second spots “on Spec” (read free)for a Casino,
using the Canon 5d, and the “management” loved them and ran them.
He then shot a more ambitious 30 second commercial, again receiving only 50 percent of his costs because he wanted to have a spot for his reel. The management also swooped in on this relatively free spot and ran it for awhile. They talked about doing a whole series of ads and my client then invested in his own 7D, and really went out on a limb with a full production crew and proceeded to shoot a Lexus promotion in conjunction with the Casino. It was a very classy, slick ad that looked like it was shot with a $200k budget. Although he was paid a little more for this spot, he still ended up eating 10K. (A great spot for his promo reel however!) Now “management” has gone back to the free local cable production ads which look like bad used car commercials for the Xmas run. They and their clientele really don’t care about “production value.” It does have something to do with ROI, but more importantly getting cheap or free commercials for most clients now.
It is also the downside to the internet age in many respects. Many people only listen to mp3s now, instead of hearing quality music through quality sound systems. HD acquisition is now at critical consumer mass and is now as ubiquitous as DV was before the HD “revolution.” Pinnacle Ultimate Studio has just about all the tools FCP does now, and even comes with Magic Bullet Looks, etc. I always chuckle at the posts of people who are all worried about camera “chip size” and “ability to be able to read the blacks” etc. when their material is going to be viewed via iPhone or You Tube, (and in this case, Demand Media). I have even been amazed at the low quality film production I have seen in our “digital age.” There are several exterior shots in “Jules and Julia” that look like they were shot on 16mm film and transferred to VHS before the final print was sent to the theaters. But if you are watching it on for free streaming on Netflix, who notices or cares? Blame the bean counters.none of us can or will survive simply because we offer video/multimedia production.
We’re lying to ourselves if we think our experience gives us some inherent advantage in creativity or quality
just do the video work as a home hobby where it’s something I do for self-actualization instead of a checkThere does come a time whether you call yourself an artist or you become a “cog in the corporate machine,” which definitely values cheaper and cheaper labor for its bottom line. Do you really want to keep getting paid less and less to do work you no longer enjoy? In the “Demand Media” story the most telling element was the once proud videographer who cringed at the footage he was shooting and editing, and who “normally would have taken out the baby crying, the wind noise, taken more time for critical focus, etc.” but didn’t because there was “no time for that.” He had to make his $20.00 for his clip via paypal!
The answer seems indeed in finding a small niche in the market, or do like Tim Wilson has done and just become a writer about media, or like Ron has done, create a site where people come and kvetch about the media, but charge advertisers for “clicks” (eyeballs). I have also seen Kevin McAuliffe cranking out a lot of Digital Juice “demos” lately, but it seems like the “Total Training, Lynda.com, VASST, Class on Demand, Peachpit online training” paradigm is become way overcrowded as well. I feel 2010 will be a very interesting year indeed for all of us in the digital production field. I wish us all well.Dual 2.5 G5, IO, Kona LH, IO, Medea Raid, UL4D, NVidia 6800, 4Gig RAM
Nehalem Octocore 12 GB Ram, Nvidia card, MBP, MXO, MXO2 mini, Windows Vista Adobe Studio CS4, Vegas 9.0, Lightwave 9.6, Sound Forge 9, Acid Pro 7, Continuum 6, Boris Red 4, Combustion 2008, Sapphire Effects -
[Christopher Wright] “There does come a time whether you call yourself an artist or you become a “cog in the corporate machine,” which definitely values cheaper and cheaper labor for its bottom line.”
Christopher,
The real question we should ask clients is do they want “a cheap looking video,” or do they really want “a video with a lower price,” i.e. “a cheaper video.”
You should check out a post I made earlier today on this very subject at: https://forums.creativecow.net/readpost/8/1066713
David Roth Weiss
Director/Editor/Colorist
David Weiss Productions, Inc.
Los AngelesPOST-PRODUCTION WITHOUT THE USUAL INSANITY ™
A forum host of Creative COW’s Apple Final Cut Pro, Business & Marketing, Indie Film & Documentary, and Film History & Appreciations forums.
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And what part of this changed for that “client”? They are likely as big a grinder today as they were before.
The companies that I know that are “cost obsessed,” always were. The ones that I know that were “quality conscious,” may be more cautious than before, but they are not The New Grinders.
Sure, there are exceptions to this, but for the most part, the psychology of the various respective buyers and their place in the market “hierarchical strata” has not changed — at least in my experience. The people that ground on others before, still are; while the ones who were respectful and aware of their image and professionalism, still are.
Yes, there is a greater caution and less “free floating monies” in the market, but human psychology isn’t all that different today than we were years ago.
What is hurting — at least for some — is that there are now people like your friend that will work for nothing. When I began doing this a couple of decades ago, nobody worked for free. When pros that can create “$200,000 productions” will work for free, that opens a whole new can of worms.
Best regards,
Ron Lindeboom
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So, how about a business model that has the high-end top level experienced editors and designers at a higher rate, and a wing with young lower paid trainees who crank out the “on-demand” type videos for a much lower rate.
The production company makes its recommendation on which one suits a particular project, the client makes their decision and off they go. With the high end side they get assured quality and best case experience and artistry.
With the lower end they take a certain risk with the savings built in.
In either case they have the assurance of the production company that they trust that they are in good hands either way. Can a production company work both approaches into their rate structure?
Hmmmmm.
Rich Rubasch
Tilt Media Inc.
Video Production and Post
Owner/President/Editor/Designer/Animator -
[Rich Rubasch] “So, how about a business model that has the high-end top level experienced editors and designers at a higher rate, and a wing with young lower paid trainees who crank out the “on-demand” type videos for a much lower rate.”
As a grandpa, this reminds me of a story that the legendary Charles McConathy (founder of ProMax) told me years ago. It’s a really good story, so go grab some milk and cookies kids and gather round…
Once upon a time when Charles McConathy and I were talking about what had destroyed Media 100 — who the geezers here will remember once had more sales and a stronger market than did either Avid, Autodesk, or FCP — Charles began to recite a story about growing up on a sheep ranch in Texas.
“You know, when I was a kid, Ron,” said Charles, looking off in the distance as he recalled those long-gone days, “the ranch hands would all run off to town to the local brothels. But there was trouble because one was $20 and the other was $100.”
He began to recall how that Media 100 destroyed themselves by “acting just like the $100 cathouse that wanted to compete against the upstart $20 cathouse that had opened up. The trouble is, by having $20 hookers in the joint, pretty soon everyone was a $20 hooker.” Charles went into detail on how it happened but with children present, I’ll leave it to your artistic imaginations.
He then correlated that in his opinion, just like the $100 cathouse, “Media 100 dropped the price on their crown jewels, which was their hardware card and the great picture it gave, to less than $2,000 including Adobe Premiere which they included, and which sold for about $500 at the time. When you deduct the $500, they admitted their card was worth $1500.”
But they were selling their then-rather-featureless software along with their card for about $20,000 at the time. People freaked. “$18,500 for this software!$#@!?,” they cried out incredulously and repeatedly.
In the end, Media 100’s “$100 callgirl” had become about as valuable as Charles’ recollection of $20 hookers.
There’s a story in there somewhere.
I am sure you will all figure it out.
;o)
God bless you, Charles. I miss you.
Best regards,
Ron Lindeboom
Creativity is a type of learning process where the teacher and pupil are located in the same individual.
Perfection is achieved, not when there is nothing more to add, but when there is nothing left to take away.
– Antoine de Saint Exupéry -
“The real question we should ask clients is do they want “a cheap looking video,” or do they really want “a video with a lower price”
Until is is obvious that they don’t even care. I was surprised myself to see this turnaround by Las Vegas ad money, people who should know better, right?
“When pros that can create “$200,000 productions” will work for free, that opens a whole new can of worms.”
Exactly. And hasn’t this actually been the case for several years now, especially when dealing with ad agencies?? More and more “creatives” are expected to put all the time and effort in conceptualizing, producing and editing a trial “campaign,” and then the ad agency decides which creative they want to “bless” with their business, then it takes 6 months to a year to actually get your money out of them.
“The trouble is, by having $20 hookers in the joint, pretty soon everyone was a $20 hooker.”
Not only was this a good story, but it segues perfectly into the story that started this thread. “The once proud videographer who was once proudly shooting scenes in a rainforest, and who is now grasping for a “$20.00 per clip” fee for his services. And I doubt that keeping the Media 100 high price tag would have saved it from an early death, just as I think that almost no one will pay 15K plus a 2k yearly “maintenance” fee for Smoke on the Mac, when they can pretty much do the same work on AE/FCP/Color if they take the time and make the effort. Hopefully the “$20.00 hooker” doesn’t become prophetic, become as popular as the “grinder” euphemism, and quickly become next year’s “elephant in the room.” I really do believe we are indeed going to see a “New Level of Grinders” in the coming year.
Dual 2.5 G5, IO, Kona LH, IO, Medea Raid, UL4D, NVidia 6800, 4Gig RAM
Nehalem Octocore 12 GB Ram, Nvidia card, MBP, MXO, MXO2 mini, Windows Vista Adobe Studio CS4, Vegas 9.0, Lightwave 9.6, Sound Forge 9, Acid Pro 7, Continuum 6, Boris Red 4, Combustion 2008, Sapphire Effects -
[Brendan Coots] “none of us can or will survive simply because we offer video/multimedia production. It’s no longer a black art, and that’s just the way it is. Survival will require more than offering “quality” services, as well.”
If you can’t get down in cost to the level of the low talent guys, then you need to educate your customer base to appreciate the value of your quality added to the product. This is where we are failing as an industry now.
Terence Curren
http://www.alphadogs.tv
http://www.digitalservicestation.com
Burbank,Ca
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