Giving away your product

[Scott Cumbo]

So the bottom line is you want to be able to say “my spots brought in X amount of money to the company” for either an increased salary or bragging rights.

and you already stated that your spots are great and your well paid,
so is it money or ego your looking for?

Scott Cumbo
Editor
Broadway Video, NYC

[Malcolm Matusky]

Over time every business changes, producing “spots” for cable was never very lucrative for independent producers and now it is less so. So what? If in house production units can do what their clients need and bundle it with broadcast time, great. They can have it, they have the advantage that they do not need to charge for production if the client is willing to pay enough for ad time, I can never compete with that and its not worth trying. I do not do, repetitive work, I hate it and every production I do is different. Talking heads corporate video was once a market segment, now it is mostly done in house as well, with “desktop” video equipment. If that suits their needs fine, I cannot compete with that either, I will not try. If the client is satisfied with a production value that any hobbyist/ enthusiast can crank out, fine. As an independent producer I have to do something else, and cannot compete in segments where I have no competitive advantage.

I started making films with 16mm film. It was easy to get jobs from companies because it was nearly impossible for them to do it themselves; now that has changed. With a few thousand dollars worth of equipment anyone can now buy the equivalent of millions of dollars worth of capital investment in “film age technology” From this post it seems as though peoples business models have not kept pace with the technological change at hand. That is unfortunate and will only drive you out of business as “rates” for producing corporate/industrial work drop through the floor.

As a business owner/producer I have to constantly define what my services are and make sure I am doing what the client cannot do, affordably or at any price. If not, I’m toast!

I do not compete with high school students, college students, no matter how good their “reel” is or ability with after effects. I “sell” business solutions, not ever changing technology. Define your business offerings better and you will be able to “compete” on better terms, your own.

If a “prospect” says they can do a production themselves, great, they are not a potential client, I saved money identifying a waste of time. I am happy with that and may keep them on a contact list for future work if they every want to do a project beyond their internal abilities. That is my market segment, going beyond the abilities of the clients capability, and I charge them for that privileged, if they are not willing to pay, too bad, let them do it themselves because they are not a “client” unless they pay MY bills, otherwise they are a complete waste of time. Be able to identify who is wasting/stealing your time and your business will improve.

Easier said than done, I know, but what are your options? competing in an area where you can never win? that’s stupid. Never run a race when the prize is poverty. Never let the “client” dictate price, if you are not able to make a profit, why are you in business? that’s stupid as well. Know your costs, make a profit, forget the “competition” if they are undercutting you, they are either stupid or have lower costs, if they are being stupid they will go out of business, if they have lower costs they will succeed. Do be sure you are “bidding” on the same thing though. It’s easy to “be competitive” by offering a much cheaper to make production and selling it as an expensive one, that is underhanded and fraudulent, but happens all the time. This is where the business gets tough, how to make a “fair” comparison between two production companies? Better selling skills usually win out in the short term, better ability in the long. How you position yourself is up to you, so is taking care of your own needs, your “client’ really does not care if you can pay your bills/live decently, all they want is the work, cheap!

In my business, there is no “cheap” the word “discount” is never used. Any “prospect” that is looking for a “discount” or something easy and cheap is not a potential client for me, I tell them to “do it themselves” and may or may not keep them on my prospect list if I think there is any potential for the future. If not, they go on the “blacklist” so I do not waste my marketing money on a waste of time.

Good luck!

Malcolm
http://www.malcolmproductions.com

[Simon Roughan]

What do you think? Both.

[Scott Cumbo]

If it’s both than it’s easy… If your as good as you think you
are. than you’ll have no problem finding a new gig if you boss turns you down when you give him the old “I want more money or I’ll have to leave” line. problem solved

you’ll never get the salesman to change the way they are.

good luck

Scott Cumbo
Editor
Broadway Video, NYC

[Simon Roughan]

Actually Scott, I was being sarcastic. Im talking about a principle.