There are a few ways that video production companies charge their clients for videos. These include a day rate, project rate, hourly rate or a combination of these pricing method. The question: How much does video product cost, does really depend of what you want, what you need and what you can afford. i.e. your budget. You will pay a higher rate for the more features you want in your video. For example, if you want a specific piece of music, an actor, VoiceOver artist, visual effects (VFX), etc. Generally, the cost of video production in the UK, from a reputable company, will cost from around £3000. Many video production companies would recommend a content strategy which includes multiple videos over a period of time, rather than just a one-off video. This is because different types of videos can serve different purposes. They key is to work with a professional video production and video marketing company to not only create the right type of video for your business but also to make the most out of your marketing budget and help you to generate a return on investment (ROI).
Pre-production costs
Pre-production costs can be one of the biggest factors that determine the total cost of video production. These expenses include everything from hiring actors and preparing equipment for shooting to permits and licensing. When drone footage is required, then risk assessments are required. The same thing applies to any type of shooting really.
This location scouting exercise can be involving but this cost is passed onto the client. It’s essential that video production companies provide a clear understanding of these costs to potential clients and that expectations are both managed and met. That’s why clear terms and conditions and rules of engagements are required and must be signed before the video production process starts.
This will help video production companies make more informed decisions about the clients they work with (so a good fit between businesses is found) and maintain a profitable relationship with their customers. In turn, the client is more likely to receive video content that is fit for purpose and marketed correctly – this goes towards providing a better ROI for this type of marketing effort. Business relationships cannot be one-sided and must be win-win. This is why a discovery or a number of discovery sessions are required.
When choosing a video production company, it’s best to establish a budget and determine your goals early on, during discovery. We’d recommend going into a discovery call or meeting knowing your numbers in terms of average lifetime value of a customer and how many leads you’d like to generate. Also, know your budget. If you’d like training videos then your key performance indicators will be different. You might want to save money on training time, new staff members onboarding time, etc. You may want videos which are aimed at improving your brand. No matter which type of video you want, you’ll need to work out what success looks like. How will you know if the video is performing? You’ll need to set targets and track results against these targets.
Setting a budget will help you to narrow down the field and eliminate companies from your consideration set that are outside of your budget. A budget also helps you decide the location for your shoot. Also, make sure to figure out how much you are willing to spend on actors and other production staff. Are you and your team going to be comfortable in front of the camera or do you prefer to hire actors? Hiring actors will likely increase for cost of production.
So how much does video production cost is very much a “How long is a piece of string” type of question. More expensive video production companies are more likely to have a greater likelihood of “hitting the mark” and delivering what you need.
Whereas a cheaper video production company may not be mature enough, or its staff may not be confident enough to challenge what you want and actually discover what you need. Cheap video production is rarely a good idea. You may think that you can find a student with a video camera who can deliver what you need. But, in reality, they may not have the life experience, business acumen and overall skillset to really find out what you need, do proper competitor research and get to the bottom of the problem to be solved.
Another aspect to consider is the length of the video production, as well as what specific components are to be included in it. If the production takes longer than expected, the price may need to be renegotiated. It may be necessary to add shots or other components. If this is the case, the price will be increased accordingly.
Once all the details are settled, the project will begin. But we can’t stress enough, the importance of having a discovery call with a professional video production company to find out what you need. I’d be very suspicious if a video production company simply “followed orders” and create what you think you want, with no challenge. Unless, of course, you’re an experience Director of Photography (DP/DoP) and know exactly what you’re looking forward. But the target audience of this content is the average business owner who isn’t yet an educated buyer when it comes to engaging with video production companies.
Travel expenses are another factor in video production. Some video production companies will subcontract some or all of the shooting to local freelance videographers. However, in most cases, the production company will travel to the location to shoot your video. This will result in additional costs for travel. The cost of travel can be offset by hiring a local videographer who is familiar with the area. Or by hiring a video production company with national reach and a freelancer or staff even, in every part of the country.
So find out what the business structure and business model of the video production company is. Also, if you choose a one-person company, sole trader type setup, then you may run the risk of being let down if the videographer becomes ill and does not provide a replacement on the day. A professional video production company will mitigate the risk of NOT getting the job done through resilience. i.e. ensuring they have a backup plan. Ensure if a videographer is ill on the day of filming, a replacement person is available.
Pre-production expenses can be significantly reduced by carefully planning and organising the video shoot. But if you fail to plan then you plan to fail. By creating a schedule, you can ensure that the project runs smoothly and on budget. It also allows you to hire the appropriate team and get the project underway sooner.
Hourly rate
One of the biggest things to keep in mind when hiring a video production company is their hourly rate or day rate. It’s worth noting that many professional videographers won’t get out of bad for less than a half day’s shooting. So I wouldn’t expect a videographer to turn up just to shoot one hour and expect to pay them for just one hour. The day rate is usually the minimum duration of engagement for a video production company. Editing and post-production may be different. But bear in mind that videographers often disincentivise their clients to book just a bit of time with them. This is because once they’ve travelled to a location, setup and filmed for one hour then a half day can easily have passed by. So paying for half-day with a videographer, will likely cost more per hour than paying for a full day. At the end of the day, travel, setup, packing up, etc takes time, and there’s economies of scale when it comes to business.
Using your own team to film your video will also save money and help you connect with your audience in a lot of instances. It’s a bit like stock photographs – they can fill a gap if you don’t have the luxury of bespoke photography services but real photography is nearly always better. So if your employees agree to be filmed, this is often a better and more cost effective often in a lot of instances.
Also, it helps to use real clients in your video productions, as this will build trust with your audience and the spirit of your business. In addition, if you are doing a testimonial or case study, you need to actually film your actual clients and customers, not actors. Or this won’t look genuine.
While new freelancers are often eager to do work for free to build their portfolio and what’s known as a fee to free model can be a great path to market, the general advice should be to avoid doing this when a freelancer becomes more established. But this creates a bit of a chicken or egg scenario, meaning that you can maybe hire a freelancer for free if they’re building a portfolio but you can’t check their portfolio for quality because they don’t have one! They creates a risk for you as a business owner since you venturing into the unknown. Imagine you rally your team, your staff together and maybe some customers to obtain some video testimonials, and the free freelancer bottles it and doesn’t turn up. Or their cheap camera dies on them and they couldn’t afford a backup because, well, they new to all of this. Is the reputation damage that this can cause and wasted time, worth the risk just to save or not spend some money? It’s all about return on investment (ROI). If a £10,000 video can generate you £100,000 in revenue then that’s a great return in terms of marketing. £50,000 would be a good return. If the free video generates £5,000 then well done, you made £5K but for £10,000 spent you could have generated £85K more. So it’s a false economy when you cheap out on video production. Because quality video production can really give you that competitive edge. Especially if your competitors don’t have video or have video can a free freelancer. This of course is a generalisation because you might pay £10,000 for a video and it may not work and that free freelancer might be able to produce the best thing since sliced bread. There are always exceptions to the rules and extremes at both ends. But in terms of averages, you get what you pay for, and paying more will generally get you more expertise, experience, skills, up-to-date knowledge, problem solving and higher end gear, and more people on set, each with their own specific skills.
Day-rate
Video production companies can charge by the project or day rate or half day rate for their video production services. This model can increase the earning potential of a video production company and their clients in the form of return on investment (ROI) and shifts the focus from the actual production effort to the value of the finished product. i.e. the value to the business that videos bring. Video production and video marketing companies can earn thousands, even millions of dollars, if they know how to price your services effectively. And so can their clients. It’s win-win. Listed below is a guide to how the most successful video production services are usually priced. At the end of the day, you can work out someone’s hourly rate by dividing their day rate up but the only figures that really matter is how much more business videos brought in and/or how much money/stress they saved you as a business owner.
So if you think that a provider’s video production services are expensive, then start with the end in mind and work backwards from what you’re trying to achieve. Ultimately, a video production company worth their salt, i.e. one like Edge Video Marketing, headed by me, Michael Greenwood, knows how to get to the bottom of a problem and provide a fit-for-purpose solution. Choose a company like that who knows how to design and implement a strategy using video. Don’t choose one that just produces a video. A video agency that can provide great results will need to get to know you and your business during discovery. Why do you need a video? This is the first question that they’ll ask. If the answer is “Because our competitors have video” – this isn’t a good enough reason.
Your project’s complexity is one of the biggest factors in determining the day rate and day rates vary. When you ask what’s your day rate? Expect a response “Our day rate start from”. A simple video may require only a few hours of pre-production work, while a complex video may require several days of post-production. Additionally, the length of the video will also affect the overall cost. For example, a short video may only need one or two days of post-production work, whereas a long video can take up to 10 days and beyond.
The day rate is a way of calculating how much a provider will be paid but it’s a fluid figure based on the project. If the project requires a Arri Alexa then expect to pay more per day than if a Sony A7Siii is required. So a “day rate” and hourly rate IS DEPENDENT ON THE PROJECT and can never and should never be a fixed amount. For example, a film crew member working 7 hours would earn £1000 a day. However, it is not uncommon for a production to plan a longer shoot day, and thus will contract with a larger day-rate amount. So, to wrap-up this section – day rates, hourly rates, half day rates etc are usually “from” amounts or “starting from” amounts.
If you genuinely don’t have a big enough budget for what you’re trying to achieve as a business decision maker or owner then compromises must be made. You can also use members of your team in place of actors to cut costs, cheaper cameras, cheaper lenses, less VFX, a less expensive script writer, shorter edits, fewer social media edits, etc. Using your own staff in productions can have the added benefit of helping your video become more authentic and trustworthy to the audience. Using real clients for your video productions will also help you build trust with your audience by demonstrating the essence of your business.
Another factor in your video production budget is the location. Some clients choose to have their crews fly to specific locations to film their videos. Sometimes stock footage for shots of New York for example, can suffice. Others opt to hire local videographers in other countries to shoot that footage is also an option. Expect to pay project management fees, and so on. But regardless of the method you choose, you’ll still need to pay for travel if a videographer is required to travel to shoot. This includes accommodation, plane costs and food and beverages whilst they’re there and for the videographers’ time whilst travelling. If the project also requires other crew members, e.g. sound recordist, lighting technician, gaffers, etc their costs will also need to be factored into the budget.
Editing costs
The cost of video editing will vary widely, depending on the type of video and its intended outcome. A video doesn’t need to be perfect. In fact, perfection is a fool’s errand. In business, “just good enough” is often ok. When George Lucus and his team created Star Wars: A New Hope, his frustration was that he wanted certain things to happen that he just had to accept were unfeasible. Star Wars is absolutely epic and timeless but George Lucas still wanted more but just had to accept limitations. As a business owner, having a video created will involve some compromises, most of which will be budget related sacrifices. But as long as the video hits the mark, the chances of success will be vastly increased.
You should also consider the audience. For example, if you’re shooting a video about a company’s products, you probably don’t need perfection. In fact, it doesn’t need to be perfect – perfection is after all a fool’s errand, we’ve already established that. Why do you need a video? Because cousin James thinks your current video doesn’t look good. Well, what do your audience think? They are the ones who ultimately will decide.
Video editing services will also cost more if you want to have motion design and visual effects added. VFX is a specialism in its own right. You’ll want to make sure you factor this into the cost when hiring a video editor. A video editor’s hourly rate could vary depending on the type of editing you require. A common analogy when we’re asked how much a video costs per minute of finished edit, is to compare to a carrier bag from Asda for example. It’s not the size of the bag, but what’s in it. i.e. not the length of the video but the components such as whether you need bespoke audio or if an off-the-shelf licence from an audio library will be sufficient, the cameras used, how many cameras, how many operators, the location or locations including how many locations and distance between them and where in the world they are. There are so many variables, the list goes on and on. So, no, charging based on length isn’t feasible as a fixed cost but some of an average cost based on length is possible. All filming jobs are ultimately priced based on discovery and what’s included in scope though with some contingency added to account for changing weather conditions etc.
Pre-production is one of the most important parts of video production. Many producers overlook it in favour of the more technical aspects of video production. However, pre-production is the most important part of a video. It is analogous to the design stage of a movie. It’s the most difficult part of the production process to charge for, so don’t ignore it and don’t underestimate it. Just because the video production company might have only spent one hour with you in discovery, don’t assume that they only spent one hour on pre-production.
Basic editing services start at a certain rate but if you want to have advanced effects, 2D graphics, and image/audio upgrades added, then expect to pay more.
You should also make sure you hire a video editor who has a great reputation and experience. Check their portfolio and understand their style. Do you like their style? Are you prepared to afford them creative freedom or would you prefer to micromanage them? Micromanaging creatives will usually result in less than optimal results. Giving them creative freedom within pre-agreed constraints is generally good approach. That is why hiring inexperienced videographers who are happy to charge £500 for a video, will often result in poor results. Because an experienced videographer will know the right questions to ask you to put together a winning plan. The inexperienced videographer may not have the life experience or confidence to do so.
Make sure you hire someone you feel comfortable with and ask lots of questions and be very hesitant to hire them if they don’t ask many questions. They should be able to work with the raw materials you provide and understand your goals but, ultimately, they’re the video expert, you aren’t, they’re the consultant, they’re leading the project based on their expertise. Most videographers will require a deposit and a signed contract with clear, succinct terms of engagement.
Location costs
When calculating location costs, it’s important to consider the amount of time the shoot will take. Fortunately, good planning and storyboarding can help you cut down on the production time.
Location fees can vary significantly depending on the number of people needed, size of the crew, and time spent at the location. Depending on the length of the shoot, location fees can range vary in costs. It also depends on the extent of the crew and the amount of time the production crew will spend in the location’s home. Also, location fees vary by market type.
Additional costs include post-production fees. Some productions require special equipment and expertise to edit the materials. For instance, drones require a special license and cost a few hundred pounds per hour. Keeping track of these expenses will help you create an accurate budget. You should also budget a portion of the budget for petty cash. This can cover unexpected expenses such as last-minute purchases.
Location costs for video production vary depending on the size of the project and the style of the production. A full day of pre-production can cost anywhere from ten to thirty percent more. Additionally, if you plan to use a data driven stats and interactivity in your video, the cost could be even higher. Other out-of-pocket costs include travel mileage, hotels, and transportation. Depending on the length and scope of the shoot, these expenses can easily reach a thousand pounds. If you choose local videographers these costs can be avoided.
The most important thing in video production is quality and return on investment (ROI). They say if you pay cheap, you pay twice, so don’t fall foul if thinking you’ll hit the video production jackpot for a few pounds. You really do get what you pay for most of the time. We really can’t stress this enough. Video marketing is also absolutely essential, especially these days when the Internet is saturated with content. A one-off video well placed at the top of your homepage and pinned to social media pages can do really well but this plus a regular pepper of videos through your social networks can do absolute wonders in terms of brand marketing and generally awareness of your products/services as well as driving new business and engaging your audience.
Thinking of doing video production in-house yourself? If you want to create a quality product, then you should invest in high-quality equipment but iPhones can create some great content these days in 2022. But are you a videographer? Do you know about lighting? How much will video production training cost? Are you really interested in it? Will you buy the video production gear then lose interest? In most instances, it’s better to hire the video production experts than to attempt video production by yourself. But if you need help with getting setup in-house including video production training then let us know. Depending on the size of your team though, unless you really aren’t that busy, it’s often better to stick to key tasks and areas of your business, with focused effort, rather than spending time and money outside of what you should really be doing in your business. That’s why I no longer do my own bookkeeping. So I don’t think that you, as a non video production business owner, should make your own video necessarily. Unless, of course you enjoy it and have a genuine interest in learning it.
Ultimately, your audience expects quality content. While video is expensive if seen as a cost, most organisations understand the importance of quality content and your competitors may be hiring video production houses to film for them. So don’t look at video as being just another cost – view it from the perspective that it’s an investment for which you’d like to see a return. If you choose a company like Edge Video Marketing, which is a trading name of Internet Marketing Platinum Ltd which is based in Yorkshire, then we not only create video but do real deep dives into your business, your competitors and ensure that we creates video, yes videos, not just one video (if you still don’t understand why you need multiple videos then please re-read this article), that really work for your business. They either support your sales process, drive more awareness of your business, provide multi-sensory content (audio/visual) about what your customers/clients, your brand ambassadors, have to say about you (video testimonials), help to provide a blend learning approach to staff training and new staff onboarding to save your training team and trainers time and make onboarding more efficient. In fact, these process efficiencies can can really when money is tight. But if money is tight then you need video to help you to sell more.
Still not convinced? Take a look at your homepage now. Do you have video on there? No. Fill in this form. You need us. Let’s book in a discovery call.
I hope you enjoyed this content and found it useful. Get in touch if you’d like to book a discovery call and we’ll see if your business and mine are a good fit.
Your sincerely
Michael Greenwood