Editing rates depending on use?
I am editing two :30 spots and one :15 spot for a very large fancy hotel chain most of you have heard about. The videos will be used for their website homepage.
Should I increase my rates depending on the end use?
Nope. Your rates are what they are. If you choose to discount your rates for certain clients, that is standard practice. But raising your rates because of the "type of work" you're doing is generally not a good business decision.
Walter Biscardi, Jr.
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Biscardi Creative Media
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Agreed with Walter, as usual...
Here our rates for shooting and editing are what they are, whether it be for a national commercial or a YouTube video.
One thing to consider though, is that certain production elements might vary in cost and change your final invoice to the client depending on the end usage of the work.
The clearest example of this is music rights. The rights for a specific cut of music might be one amount for, say, a local or regional commercial... and a completely different amount for web usage. It surprises some clients to learn that music rights for web usage are typically much more expensive than for a local or even regional broadcast.
Another changing factor can be actors' performances, if there are any. Some talent (and/or their agents) might have different rates depending on the end usage... even moreso if union talent is involved. The same applies for voice talent as it does for on-screen.
Fantastic Plastic Entertainment, Inc.
[Martin Follett] "Should I increase my rates depending on the end use? "
This is one of those areas best dealt with right up front and discussed openly and honestly with the client's point person and then later, based upon that discussion, written into your deal memo, work order, or whatever written agreement you get them to sign off on before any work begins.
Keep in mind when discussing this that the end use typically has a major impact on the workflow and the deliverables an editor normally provides, so there's more to it than just getting more money for wider use of the end product. Insuring that the spots are within broadcast specs may not be an issue when exporting video for the Web, but it certainly comes into play when outputting for TV. So, a real online prep for broadcast needs to be discussed, and you might want to provide a list of all the details that add to your time.
There's also an issue of local vs. regional vs. national usage that should probably also be discussed. However, you probably don't want to come off sounding like a lawyer if you don't think these spots actually have very wide market potential outside your local area or region.
David Roth Weiss
David Weiss Productions, Inc.
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The rate stays the same. The number of hours applied, and the quality of the ingredients available may go up, if they are willing.
As mentioned, better actors, more lighting gear to rent, maybe a dolly or jib shot, better camera or sound gear, custom music or clearances of existing music. Stuff you go over with them when discussing the level of product quality they want and the budget they want to spend.
But you can point with pride to the rate card and say you're not charging them any more per hour for your brains and creativity than you would for Bob's Donut Hut. As with any two cars or homes, the difference is in the quality of the materials used, the craftsmanship and detail applied.
I come from a commercial still photography background where usage always comes into play when estimating work. Why should music and actors have a rates based upon usage and not directors, editors, or production companies?
We don’t use a rate card for our editing services. We have a range for our editing services depending on whom the client is and what the usage is. We present an estimate for every job and the creative fees will vary depending on the client and the usage. I believe if you are doing a web video for a small non-profit you simply can’t and shouldn’t charge the same as if it were producing a web video for a large corporation like IBM. Yes it’s the same creative effort going into every project but the big corporate client is going to use your creative services to generate a lot more revenue then the non-profit or small mom & pop operation.
[Jeff Cadge] "I come from a commercial still photography background where usage always comes into play when estimating work. Why should music and actors have a rates based upon usage and not directors, editors, or production companies?"
In light of your background, do you think that a usage pricing model is still competitive? Or that it's applicable in cases like corporate video, where media is custom-produced, without the opportunity for resale to another buyer?
Both photographers and composers are currently under a lot of pricing pressure from a proliferation of low-cost, buyout stock media that's "good enough." I know photographers and composers who are re-thinking the way they run their businesses because this competition is so stiff.
[Jeff Cadge] "I believe if you are doing a web video for a small non-profit you simply can’t and shouldn’t charge the same as if it were producing a web video for a large corporation..."
In my experience, large companies have the strictest cost controls. It's pretty common for a large company to require you to offer them the lowest rate you offer to anyone for a specific service as a condition of the purchase order.
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