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Undercutting as a business model
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[Terence Curren] “My response last night was to offer any producer a “written” estimate of any amount they chose that they could then take to this guy who has publicly said he will beat it.
So I could give then a complete finish with audio on paper for $10.00, and he would have to do it for $9.00. Or else he is a liar. :-0 “
That’ll teach him! Honestly, seeing now that they really are claiming to offer full services, I don’t see how they can realistically expect to stay in business past their third or fourth rent payment.
Arnie
Post production is not an afterthought!
https://www.arniepix.com/ -
[Terence Curren] “PS: Yeah I know I was being a dick, but sometimes I just can’t be restrain myself…”
Know thyself. — Socrates
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[Terence Curren] “PS: Yeah I know I was being a dick, but sometimes I just can’t be restrain myself…”
Only yesterday I received a call from a formerly very good client, whom I also consider to be a good friend, who told me that the twenty-something year old son of an exec. at his company had bid $5000 on a job I was going to bid on at between 15 and 20K. They pulled the project before I could even start on the budget and gave it to junior.
So Terence, using that devious mind of yours, what can we send over there to solve this one???
David Roth Weiss
Director/Editor
David Weiss Productions, Inc.
Los AngelesPOST-PRODUCTION WITHOUT THE USUAL INSANITY ™
A forum host of Creative COW’s Apple Final Cut Pro, Business & Marketing, and Indie Film & Documentary forums.
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If the general public bought solely on price, they would all be driving Neons and eating at McDonalds.
The problem is that most Americans do buy on price. Why do you think WalMart has been such a huge success. As for Neons, if the economy doesn’t get better, that could become the new reality.
Yeah baby, keep that cheap Chineese stuff coming!
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David said:
...son of an exec. at his company had bid $5000 on a job I was going to bid on at between 15 and 20K. They pulled the project before I could even start on the budget and gave it to junior.
The most popular old fashioned barber shop in town has a row of parked cars sometimes ringing the block, all loyal customers. Why? Major clue: a simple sign out front:
“We fix Seven-dollar haircuts”
If “junior” satisfies them, then forget it; you never had this business anyway. The sweet revenge will be on bidding to repair or re-do the botched job later.
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[Mark Suszko] “”We fix Seven-dollar haircuts””
Classic and so, so right. The best I can hope for I guess…
David Roth Weiss
Director/Editor
David Weiss Productions, Inc.
Los AngelesPOST-PRODUCTION WITHOUT THE USUAL INSANITY ™
A forum host of Creative COW’s Apple Final Cut Pro, Business & Marketing, and Indie Film & Documentary forums.
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[Mark Suszko] “The sweet revenge will be on bidding to repair or re-do the botched job later.”
I have made quite the reputation doing just that.
Steve Wargo
Tempe, Arizona
It’s a dry heat!Sony HDCAM F-900 & HDW-2000/1 deck
5 Final Cut (not quite PRO) systems
Sony HVR-M25 HDV deck
2-Sony EX-1 HD . -
Most Americans buy their generic, everyday things solely on price. When you start looking at a commodity, especially say… a commercial to make your business look good, or a corporate piece to get your employees pumped up, though, it’s a different market with different expectations of both quality and price.
Most Americans aren’t buying post-house time. The ones with the money to spend are, and I think that most of those realize that if they spend their money appropriately, they’ll get more bang for the buck than if they have their nephew do the project. The problem comes in when there is a squeeze, and the company has to look for any way possible to cut back. That extra $15K looks like an awful lot of money in the short term.
In the long term, though, they’ll soon see the error of what they’re doing and come back. They need a good quality product, and that is something that the nephew being paid $5,000 to do the work on his pirated version of Final Cut can’t give.
Unless the client is trying to compete based on price, too, in which case we get a bad case of catch-22. They can’t get quality without spending the money, they don’t have the money to spend because they’re not making anything quality. Soon they’re out of business, and we move on to people that come to us because we do better work.
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[Randy Lee] “In the long term, though, they’ll soon see the error of what they’re doing and come back. They need a good quality product, and that is something that the nephew being paid $5,000 to do the work on his pirated version of Final Cut can’t give.”
I hope you’re right! However, I have to admit, I’m scared now. This really worries me. Combined with the economic news we’re seeing on TV these days, I’m concerned we’re all in for a world of hurt, and suddenly that hurt has landed on my doorstep.
I’ve been warning people here to keep their jobs for a reason. Now, I’m beginning to feel the kind of pain I was warning about…
David Roth Weiss
Director/Editor
David Weiss Productions, Inc.
Los AngelesPOST-PRODUCTION WITHOUT THE USUAL INSANITY ™
A forum host of Creative COW’s Apple Final Cut Pro, Business & Marketing, and Indie Film & Documentary forums.
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In your case David, I don’t know that I’d be so surprised at their decision, considering who they awarded the job to.
If Junior is the son of a high-level exec, he only needed to underbid you by $1, if at all, and he would have likely gotten the job. If you’re competing against a decision maker’s family (particularly their kid), good luck. After all, they’re not going to tell their genius child no! Especially when they’re trying to get their awesome new production business started!
Does that make it right? No. Will this kid do as good a job as you would have? No. Their best chance now is that this kid really is a natural talent with skills beyond his years. Otherwise, definitely stay in contact for the clean up.
Best of luck on it.
Michael.
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