The value of time

[Chris Blair]

When we have clients question charges or line-items they think are high, we typically just roll them into a different, less scrutinized line item on the estimate.

Example: when everyone started moving away from doing VHS and DVD’s and began sending digital files for project review and approval, we had clients complain when we charged them for encoding a file and emailing it. We were charging the exact same price we charged for VHS or DVD copies, but in their mind, we were doing less work. In reality, it took us about the same amount of time to encode, check the digital file, type up an email and send it…or upload to FTP.

Rather than try to explain this or fight with them, we just charge a 1/4 hour extra editing per encode. We make the same amount of money and nobody complains.

Same with rush projects. We just add hours to the shooting or editing time (unless it’s a weekend shoot, where we charge time and a half). The client doesn’t see anything called “rush charges,” but we still bill for it.

Problem solved.

Chris Blair
Magnetic Image, Inc.
Evansville, IN
http://www.videomi.com

[Michael Hancock]

[Chris Blair] “Rather than try to explain this or fight with them, we just charge a 1/4 hour extra editing per encode. We make the same amount of money and nobody complains.”

This is exactly what we did when we started delivering via FTP. We took our hourly rate, divided it by what we charged for a dub, and add that as edit time for every file we upload.

Plus, it solves the hassle of billing sales tax for a Beta dub because we’re no longer delivering a tangible product. Instead we’re providing an extra service, which isn’t taxable. Win-win for both parties.

Michael