Re:very competitive, but...

You said,

"I guess we are really cheap $250"

By my calculations, you are only charging for editing (@ $100/hr) and throwing in everything else for free.

In the example that was given there was about 5 hours of work.

(example: 1.5 hours shoot time for on camera chatter, 2.5 hours of logging, editing and blah,blah,blah, and around and hour of compositing/titling/effecting/whatever.)

(This example is not even considering whatever you did to get the job, paperwork, and archiving and wrapping up things,which most likely would amount to at least one full 8 hour day.)

If you only have 2 people working on this (you and a grip/secretary/assistant/whoever), then for 8 hours you are only getting $15.63 per hour. After taxes and social security that is only around $10.16 per hour each. (At a tax rate of 35%.)

After you throw in medical insurance, business insurance, (equipment and/or location insurance, advertising & marketing and other normal "costs of doing business", you can't be clearing much over minumum wage, and you seem to be close to having to work every day in order to cover your costs.

So my question is: which of those "extra costs" do you cut first? Production insurance? O.K. while it lasts, but one accident on the set could end your buisiness. Medical insurance for yourself? Sacrificial, but again, if you get hurt it could spell disaster not only for yourself, but for your business.

I'm not doubting that you put out a great product at a great price. You may be cutting costs by being a one man shop, borrowing gear, etc. I just wonder how long it can last?

I'm hearing about a lot of people with rates similar to your's around the country, and I think that the market is going that direction. I'm just curious about how you plan to sustain those rates in the long run. Do you plan on growing your business (either size, assets, or client base?)

I really don't mean to be discouraging, there was a time when I would have been estatic earning $10 an hour doing video. How long will it be before you get tired of that rate? In my experience, clients love it when you drop your rates, but have a really difficult time if you raise them. Starting out at $250 a spot, what room do you have to discount rates (for long term contracts, bulk dubs etc.?)

Just wondering...