Listing Prices

[Kevin Shaw]

If you don't list any price information on your web site, you're definitely losing those people who figure that no price = high price. Even expensive luxury cars usually have some starting price available, and some will walk you through pricing options online. Not listing prices wastes your time and that of potential customers, unless you plan to "upsell" struggling couples into an expensive video they can't really afford. That said, mystery pricing apparently works for some who are good at selling themselves to clients willing to wait to the end of a sales pitch for pricing.

P.S. So-called "Wal-mart" pricing looks better to most customers, so unless you're doing a video for Andrew don't round up to $3000 from $2995.

[Ethan Cooper]

Kevin - It might be wise to remember that what works for some, doesn't always work for others. We all have unique styles in our products and how they're marketed and different segments react to those styles in their own way.

The people who are turned off by a particular pricing scheme might not be the people I'm tailoring my product towards, just as there is a segment of the client base who is not interested in the style of video I produce.

You're not going to book 100% of the people who look at your work be it due to style, marketing, or budget but as long as your particular combination of product, price and marketing lands you the number of weddings you want in a given year then you've done something right.

There is no magic formula and I highly doubt that rounding a number by $5 either way makes one bit of difference when someone is about to shell out $2000+ for a video. At least it wouldn't matter to me since it's $5 for goodness sake but then again... I might be the guy who that type of pricing speaks to... or doesn't speak to... you get my point.

[Andrew Waite]

Originally Posted by Kevin Shaw

P.S. So-called "Wal-mart" pricing looks better to most customers, so unless you're doing a video for Andrew don't round up to $3000 from $2995.

Thanks Ethan for backing me up. Kevin, it wasn't my intention to ruffle any feathers. Let me ask you, do you poll your clients after your sales pitch with a question like: "Had my price been $2000 and not $1999, would that have changed your mind?" Or do you have some data from a national consumer spending report that I don't know about? Because where I made my statement as matter of opinion you seem to make a statement as a matter of fact. I "feel" that most consumers are smart enough to not be fooled by digit increases. I'm sure it's fine with deodorant or toothpaste, but we're talking a couple bucks there... wedding videos are in the thousands.... THOUSANDS. I "feel" $1 or $5 is not going to make a $3,000 investment "look" any better. Matter of opinion.

I'm sorry if I insulted you, Wal-Mart, or your pricing strategy... that wasn't my intention.

[Dave Blackhurst]

Well, just another opinion... I personally like round numbers, as apparently do several others <wink> who are not so easily "fooled" by marketing tricks.... and I tend to price that way...

BUT, let's not ignore a LOT of marketing research, (yes, that means companies with the wherewithall to DO marketing studies as to whether things sell better for 1.99 or 2.00), and that research DOES indicate that somehow the AVERAGE buyer is in fact, like it or not, subconsciously or otherwise, swayed by insignificant differences in price...

I don't know that all that research applies specifically to the wedding video market, but it would make sense that a consumer is a consumer, and at least when a consmer sees "2995" they PERCEIVE it to be somehow a better deal than "3000". I'm not saying one way or the other, but it's at least worth considering...


And another thought, from earlier in the thread... ask yourself how you shop for something?? If you go looking online for a product or service and the site says "click here for a quote" (presuming that unlike Amazon you have to respond and they don't get an instant response), and the next site gives you a range of prices, most of which are affordable, and the last site gives you a good description of EXACTLY what you are looking for, quotes a price that's fair and reasonable and mentions that you can customize to your needs... which site will you buy from? The last one you can jump on it and make a purchase knowing you're getting what you wanted for the price you wanted...

Admittedly, selling a specialized personal service is a different animal, but generally speaking the easier and more comfortable the client is from the very beginning, the more likely they will follow through towards the end of the transaction...

I've seen some "snobby" photogs that I'm sure have extrememy high prices be very secretive about their pricing - it's a turn off to me, maybe someone else likes the secret agent sales approach, I'll walk away immediately, because to me it's the kissing cousin to the "NY camera store" bait and switch boogie...

How many others here are in the "give me the price, if it's acceptable, I'll buy right now, don't try to 'play' me" camp?

[Ethan Cooper]

This discussion makes me want to price my stuff at $2,732.48 just to see what would happen. Or for even more fun, since I'm in the US, price my stuff in Yen, then when meeting with clients convert the 20,000 Yen down to the American sum of 2,000 to make the price sound better.

[Noa Put]

What I also seen happening here is they exclude taxes and mention that in very small print somewere on the other side of the webpage. I just wonder how many clients would appreciate that if they find out afterwards.

[Andrew Waite]

Noa, you bring up an interesting point on taxes. I know it's a state/local government thing, but at least in California where I'm from you do not charge tax for a service (which videography is considered we are not "reselling" anything and the DVD-Rs we use WE payed sales tax on already), but it may not be that way in other states... or I could be wrong about it all together, but who here charges tax? I noticed my friend Kevin Shaw mentions charging sales tax on his site and got me thinking. Anyone care to chime in and clarify?

[Ethan Cooper]

Andrew - From your post count I can see you're relatively new. The tax question gets brought up a couple times a year and it usually ends in bloodshed. It's safe to say that it varies from state to state and from personal interpretation of laws within a given state.

Oh, and so you know, if the tax question ends in bloodshed, the music copyright topic tends to end in all out thermo-nuclear war. I'd avoid both of those topics here and take them up with proper legal council in your area.

**EDIT**
I see your profile thing has you joining sometime last year, so you're not right off the boat, but maybe you haven't been around long enough to know which topics to avoid like the plague.

[Tim Harjo]

No need for bloodshed.. just check with the Board of Equalization. It's not a gray issue at all. It's only a gray issue if you make your own interpretation of the law. So check with the Board of Equalization if you have a question about this, not your accountant, your lawyer friend or some guy that 'knows stuff'.

In California, if you are doing wedding videos, the clients gets back a tangible good. Therefore, you must charge sales tax for the package that they purchase. You can't side step the issue, because if you recorded footage that ends up on the DVD they get back (or any other media form), then you must charge sales tax for the entire purchase price of the labor as well.

[Tim Harjo]

Originally Posted by Andrew Waite

the DVD-Rs we use WE payed sales tax on already

Wedding Videographers in California can apply for a resellers license (that is for legitimate businesses with a California Business License). This license allows you to go to places like Costco and NOT pay sales tax for items that you are re-selling.

That being said, unfortunately, I don't think Costco carries the DVD-R's most of us use, and I don't know of any place where you can use your re-seller's license that would benefit us to get blank DVDs. My advice is to just buy them online. No sales tax for out of state purchases and shipping is minimal.

[Tim Harjo]

Ok.... got one more for ya.. Look at any big newspaper car ad.. Not the one liners, but the full page ads (The ones that cost the big bucks). Count the number of 9's in that ad.. Automakers spend a ton of money on market research. If it's good enough for them...

[Andrew Waite]

Thanks Tim. See, you learn something new every day. Book keeping is not my cup of tea.

[Chris Davis]

Originally Posted by Tim Harjo

Ok.... got one more for ya.. Look at any big newspaper car ad.. Not the one liners, but the full page ads (The ones that cost the big bucks). Count the number of 9's in that ad.. Automakers spend a ton of money on market research. If it's good enough for them...

A better example would be radio or tv ads. They're paying by the second, and apparently taking that extra time to say "twenty-nine-nine-ninety-nine" rather than a quick "thirty-thousand" is worth it.

Plus it allows them to be able to say "A luxury car for under thirty thousand" - even though it's only a buck under.

[Ben Moore]

On the Sales Tax issue:
For What its worth, here is a reply from the State of Washington Department of Revenue


"If you edit, add titles, combine the tape with other video materials, etc., so that an original work is created, retail sales tax is not due. The sale of a one-of-a-kind master tape for a customer is subject to tax under the service and other activities classification of the business and occupation (B&O) tax. In your example, the $1500 would not be subject to additional taxes. However, sales of additional copies would be subject to retail sales tax and retailing B&O tax."

I asked this question direct and got this reply, I know Its not Cali. but I would guess they have a similar policy

Ben

[Tim Harjo]

Originally Posted by Ben Moore

I asked this question direct and got this reply, I know Its not Cali. but I would guess they have a similar policy

Ben

Nope. Not similar at all. Like I said...

Originally Posted by Tim Harjo

In California, if you are doing wedding videos, the clients gets back a tangible good. Therefore, you must charge sales tax for the package that they purchase. You can't side step the issue, because if you recorded footage that ends up on the DVD they get back (or any other media form), then you must charge sales tax for the entire purchase price of the labor as well.