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Holding pricing?

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Greg Ball
Holding pricing?
on Nov 11, 2019 at 2:22:14 pm

Hi All,

In my proposals I always say that our pricing is good for 30 days. I have a rather large project I'm bidding on and the client is requesting that pricing stay in effect for 90 days.

My issue is we're renting equipment since we are shooting with 7 cameras and 7 Atomos recorders. Also we're contracting out 8 people. (I'd really like to lock in all equipment and crew.

What would you tell the client? This would be a great gig to get!!


Thanks so much.

Greg Ball, President
Ball Media Innovations, Inc.
https://www.ballmediainnovations.com


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Todd Terry
Re: Holding pricing?
on Nov 11, 2019 at 3:52:53 pm

I would ask, is there any reason to suspect that your costs will go up in the next 90 days? Or were you planning a rate increase yourself that you were planning to implement sometime between days 30-90? If not, I don't really see any downsides into locking their rate for 90.

Sounds like a big job and one that you'd like to get, so I don't really see much of a reason not to.

T2

__________________________________
Todd Terry
Creative Director
Fantastic Plastic Entertainment, Inc.
fantasticplastic.com



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Greg Ball
Re: Holding pricing?
on Nov 11, 2019 at 6:16:33 pm

Hi Todd,

Thanks for your response.

As I said we're renting Cameras and Atomos recorders. Those prices are not within my control. Also with 7 freelance contractors, I'd like to keep them all on hold. This way they'll be familiar with the nuances of each room. AlsoI can train up each person to frame the shot how I wish and also record on the Atomos. Otherwise I'll end up with different people on different days and I'll always be training camera/atomos operators.

90 days would only be 30 days out from the event, and maybe not fair for my freelancers to book those days without an agreement. Thoughts?

Greg Ball, President
Ball Media Innovations, Inc.
https://www.ballmediainnovations.com


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Todd Terry
Re: Holding pricing?
on Nov 11, 2019 at 6:27:52 pm

I'm a little bit confused, that seems like apples and oranges to me.

On one hand you're talkin about holding pricing for a future event, but really you're talkin about locking them into a contract. Those are two different things.

Just because you guarantee pricing 90 days from now doesn't necessarily mean they've committed to hiring you for the event... which is what you need in order to firmly book a crew, make rental arrangements, etc. That's irrespective of whether or not your prices are the same or higher 90 days from now.

Sounds to me like you just need to lock them into a contract, so they are obligated to pay you whether or not the gig happens... with or without you.

T2

__________________________________
Todd Terry
Creative Director
Fantastic Plastic Entertainment, Inc.
fantasticplastic.com



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Nick Griffin
Re: Holding pricing?
on Nov 11, 2019 at 8:20:48 pm

OR... you might consider telling the prospective client that while you can lock the price for 30 days you must have the OPTION after that to raise the price up to 10% based on any changes in your rental costs and which subtracted crew members may or may not be available. Handle this apologetically and politely and explain that it's a very fluid market and you'd very much like to protect THEM with this one POSSIBILITY.

How you handle this can also have a very positive impact on how they trust you and therefore want you to win the gig. Even though people always say money is their number one concern it often isn't. TRUST in the quality and RELIABILITY of the end product is what closes the deal more often than not.

Now the reality: when do we ever see prices for rental gear going UP? In my experience it almost always stays the same or goes down as technology marches forward. The real concern is being able to lock in people you can depend on.


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Mark Suszko
Re: Holding pricing?
on Nov 12, 2019 at 3:37:48 pm
Last Edited By Mark Suszko on Nov 12, 2019 at 3:38:39 pm

My Spider Sense tell me this is not really about locking in your rate for ninety days, because if it was, they'd just sign the contracts NOW, wouldn't they? It's not like the big event they are planning is in danger of being cancelled. They've locked-in the hotel and the transportation already, I'm sure. The publicity has gone out, or is about to. The ads are bought and paid for. This is happening.

I think this is a probe to see how firm you are, so they can try to negotiate your price down. Either they already know you are the guy for this, and are (redacted)-ing-around, or they have one of your competitors on the top of their list and you are just the "official" (required by accounting rules) benchmark comparison price source, not the real candidate for the job.

My take is, re-draft a new bid with the 90-day guarantee and raise the price eight to ten percent, to reflect the extra risk. You are neither a bank nor an insurance company. They sense you really want this gig; that's risky for you. You can't bee too eager. Rule two of business negotiation is; they have to believe you can walk away from a bad deal - if they don't believe you could walk away from a bad deal, they own you. And that reputation will poison your future deals in that market because now people know you can be rolled.


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