The sad thing about craigslist low ball prices is that businesses (and yes there are businesses not just indy films . . . and some businesses posing as indy filmmakers) are getting people to work for next to free and some of those people are talented. That’s foder for another thread though.
The “standard” rate is what you need to survive and grow with your business model.
Gather your total monthly expenses
Rent, food, utilities, insurance (health and gear), web page hosting, email service, cost of equipment, cost of maintenance, cost of software, cost of upgrading all that over 2 years or so (especially for computers, maybe 1 year for software, cameras it depends but 2 or 3 years is reasonable these days), car costs (and there are many), cost of consumables like video tape, office supplies, office furnature, living furnature, anything else you can think of.
Figure out what your yearly expenses are using the above (everything in your life!)
Assume about 20-25 paid hours of work a week.
You’ll be spending the rest of the time maintaining gear, talking to prospective clients, maintaining web page, putting together demos, bookkeeping, billing, learning new gear and software, buying supplies and some time buying new software/gear. You may still find you’re working 60 plus hours a week even with 20-25 billable hours.
You now can figure out what you need to charge to cover all your life expenses and maintain your business and replace software/gear when the time comes. At $50/hr working 20 paid hours a weeks (and probably 20-40 unpaid hours!) you’d be grossing about $1000 a week. Will that keep you going in Las Vegas?
Profit and life’s enjoyment
Do you want 2-4weeks off during the year to enjoy life and prevent burnout or work on personal projects? Do you want to dine out, go to movies or sporting events? What about sick days or other life contigencies that will cut into your billable hours? There’s money you’l want to go on vacation maybe. Buy some toys for yourself. Things that are fun but “non functional/live survival” purchases. Money to grow your business further rather than just maintain it. Cost of training classes for example? Gong to trade shows? Savings so you’re not living from job to job. What about family expenses if/when you have kids? Factor all this in too.
Factor all the above in to what you should be charging for the 20-25 billable hours. To me, the difference between a “newbie” rate and an “experienced” rate is how one factors in the “profit” area. Newbies that charge below the base survival rate for their businesses hurt all of us . . . including themselves. They’ll become hobbyists as they need to look for a “real job” to survive or they’ll be “renting” their gear an craigslist or selling it on Ebay.
Keep the above in mind and you should be able to figure out what your rate should be.
In simplified form
Iit’s all your expenses both personal and business, desired profit for fun stuff, 20-25 billable hours a week for about 48 weeks or so a year (include sick days and other time off).