All of the above responses are right on the money. Most people outside our business have no idea what we are worth. They do know that video is video and it’s all the same. Yep, we all shoot on VHS. They think beta is the home format that lost. Why buy grip gear when all you really need is a news camera, black tripod, a big battery and a small light on top. No microphone is needed because there is one mounted right on top of the camera, right where it belongs.
When we get the inquiries, we first get a name, address and phone number. After they faint at the real price, we advise them that there are other sources that can match their budget. We refer them to recent grads of the local film/video school. We also, very politely, make sure that they have our contact info so that after they receive their footage, we would be happy to look at it and advise them on any problems that they may see or wonder about. When they bring the dark, shaky, out of focus footage, tell them it’s actually pretty good for what they paid. Have a premo shot reel available nearby and show them the difference. Be as kind and professional as you can possibly be and never cut down the competition. Just say “Here is a sample of our typical work”. Keep it brief. Don’t say “What the hell did you expect for $125, you dumb shit”. This may turn them away.
When these things come in to us, if it’s gotten to the point that I mentioned above, I’ll sometimes offer to do it right and actually subtract the amount that they paid Mr Shaky. But only if they feel like long term repeat clients. Be the hero. They need one right about now. Hold their hand. Give em a hug. Cash their check.