How much to charge a client? at DVinfo.net

David Horwitz · November 14th, 2008, 10:57 PM

Hey all,

Recently I did a videography project where my client wants 15 copies of the following. There were 2, around 2 1/2-hour long talks. So the breakdown is this:

15 DVDs of talk 1
15 DVDs of talk 2
30 CDs of talk 1 (since they are 2 1/2 hour long talks)
30 CDs of talk 2

Total media generation: 90

The idea is that I'm going to sell him the above for him to resell, and then anything after that I can make on my own as needed and sell it. I did this for no cost up front. So how much would be a fair rate for doing this media generation? There is also the cost of the materials to consider: media, ink, label, disc spool, and shipping. I will have to do these 1 by 1 since I don't have a mass production unit.

I usually make $60/hour doing videography, but this is sort of a service project and is a lot different. Let me know what you think, thanks!

Steve House · November 15th, 2008, 05:57 AM

Why not call around to duplication houses in the area and see what they'd charge? Are the video and audio programs mastered and ready to duplicate, disk and box labels done and camera ready, etc, or will you have to do all the setup?

Why does your client want you to do it instead of him simply delivering the program and ancilliary materials to a regular duplication house and paying market rates? Just due to economies of scale you can't do it for any less and make any money yourself. If I read your post correctly, it sounds like your client is hoping to save money by convincing you to do it at breakeven for the costs of disks and labels, without you factoring in your time or other compensation, by giving you permission to sell copies on your own in the hope of making your profit that way. If that's the deal, it's not likely you'll make a penny off of it. Before you factor in any opportunity to make a buck selling copies on your own, in your coolest and least emotional assessment, is the program something that anyone in their right mind outside of a micro niche market would pay money for? Is that market someone you can reach without a lot of effort and won't your client have already completely satisfied the demand with the 15 copies he's probably hoping he can talk you into giving him at cost? I'd suggest completely dropping any consideration of earning money by selling copies on your own from the equation.

Hours spent doing this are hours removed from your "inventory" of time you could be billing for videography at your regular hourly rate. Such "opportunity costs" are a very real cost that is incurred when one activity prevents you from doing some other economically productive activity and are part of the cost of doing business that must be factored into your pricing. That means above everything else you have to add the opportunity cost of $60 per hour.

David Horwitz · November 16th, 2008, 07:27 PM

Thanks Steve, this is what someone quoted me:

he said 1.50 per dvd and 1.30 per cd full color printed face on a spindle
so 123$

Does that sound reasonable to you guys?

Shaun Roemich · November 16th, 2008, 08:07 PM

Quote:

Originally Posted by David Horwitz

Thanks Steve, this is what someone quoted me:

he said 1.50 per dvd and 1.30 per cd full color printed face on a spindle
so 123$

Does that sound reasonable to you guys?

I wouldn't go NEAR it for less than $6 per DVD, $4 per CD. Wear and tear, my time etc. And that's not taking into consideration cost recovery from the shoot (which I don't do - pay me for shooting and editing and THEN we'll worry about duplication), if I'm hearing you correctly.

It costs me 40 cents per disk, about 50 cents in ink to print the disc, 40 cents for my jewel case and about 8 minutes of my time to do one disc.

If you can get someone to do it for the costs you mentioned, outsource it and mark it up 25 - 100% for your client.

David Horwitz · November 16th, 2008, 10:45 PM

Thanks, yeah this is a special case. I'm partly doing it as a service, but after this I might either stop, or change how I do these gigs.

Shaun Roemich · November 17th, 2008, 08:55 PM

Been there, done that... Just thought I'd share my point of view from a purely financial angle.

November 14th, 2008, 10:57 PM	#1
David Horwitz Regular Crew Join Date: Sep 2008 Location: Los Gatos, California Posts: 109	How much to charge a client? Hey all, Recently I did a videography project where my client wants 15 copies of the following. There were 2, around 2 1/2-hour long talks. So the breakdown is this: 15 DVDs of talk 1 15 DVDs of talk 2 30 CDs of talk 1 (since they are 2 1/2 hour long talks) 30 CDs of talk 2 Total media generation: 90 The idea is that I'm going to sell him the above for him to resell, and then anything after that I can make on my own as needed and sell it. I did this for no cost up front. So how much would be a fair rate for doing this media generation? There is also the cost of the materials to consider: media, ink, label, disc spool, and shipping. I will have to do these 1 by 1 since I don't have a mass production unit. I usually make $60/hour doing videography, but this is sort of a service project and is a lot different. Let me know what you think, thanks!

November 15th, 2008, 05:57 AM	#2
Steve House Inner Circle Join Date: Mar 2005 Location: Hamilton, Ontario, Canada Posts: 5,742	Why not call around to duplication houses in the area and see what they'd charge? Are the video and audio programs mastered and ready to duplicate, disk and box labels done and camera ready, etc, or will you have to do all the setup? Why does your client want you to do it instead of him simply delivering the program and ancilliary materials to a regular duplication house and paying market rates? Just due to economies of scale you can't do it for any less and make any money yourself. If I read your post correctly, it sounds like your client is hoping to save money by convincing you to do it at breakeven for the costs of disks and labels, without you factoring in your time or other compensation, by giving you permission to sell copies on your own in the hope of making your profit that way. If that's the deal, it's not likely you'll make a penny off of it. Before you factor in any opportunity to make a buck selling copies on your own, in your coolest and least emotional assessment, is the program something that anyone in their right mind outside of a micro niche market would pay money for? Is that market someone you can reach without a lot of effort and won't your client have already completely satisfied the demand with the 15 copies he's probably hoping he can talk you into giving him at cost? I'd suggest completely dropping any consideration of earning money by selling copies on your own from the equation. Hours spent doing this are hours removed from your "inventory" of time you could be billing for videography at your regular hourly rate. Such "opportunity costs" are a very real cost that is incurred when one activity prevents you from doing some other economically productive activity and are part of the cost of doing business that must be factored into your pricing. That means above everything else you have to add the opportunity cost of $60 per hour. __________________ Good news, Cousins! This week's chocolate ration is 15 grams!

November 17th, 2008, 08:55 PM	#6
Shaun Roemich Inner Circle Join Date: Sep 2002 Location: Vancouver, British Columbia (formerly Winnipeg, Manitoba) Canada Posts: 4,088	Been there, done that... Just thought I'd share my point of view from a purely financial angle. __________________ Shaun C. Roemich Road Dog Media - Vancouver, BC - Videographer - Webcaster www.roaddogmedia.ca Blog: http://roaddogmedia.wordpress.com/

November 16th, 2008, 07:27 PM	#3
David Horwitz Regular Crew Join Date: Sep 2008 Location: Los Gatos, California Posts: 109	Thanks Steve, this is what someone quoted me: he said 1.50 per dvd and 1.30 per cd full color printed face on a spindle so 123$ Does that sound reasonable to you guys?

November 16th, 2008, 10:45 PM	#5
David Horwitz Regular Crew Join Date: Sep 2008 Location: Los Gatos, California Posts: 109	Thanks, yeah this is a special case. I'm partly doing it as a service, but after this I might either stop, or change how I do these gigs.