When it comes to video production, pricing and budgeting for your project (or projects) can be really challenging no matter if you are a private school, nonprofit, or a business. If you google “How much does a video cost?” three things will happen. First you’re gonna get so many varying costs from company A to company B to company C because there’s so many different elements that come into play when it comes to video production for each company. Second, you may likely see some myths about how video production costs are calculated. And third you may not get answers that are relevant to your project. It’s important to understand that all video is NOT created equal.
As you’re looking into who may be the best video marketing/production partner, I want break down some myths about exactly how pricing works with a video production company that way you can understand what you need to budget for and make informed decisions for your first (or next) video project, or even understanding how to incorporate video into your ecosystem.
- Myth 1 “The length of the video affects price”- 9 times out of 10 the exact length of a video doesn’t affect the price. If you initially thought about making a 2 minute video but then decide to keep it closer to 1 minute, it doesn’t mean your production partner is going to cut the price in half. In fact it may add more complexity to the project. A shorter video with graphics, multiple shooting locations, or tightening up the story can possibly be more expensive to produce, but it’s also going to be more valuable. That said if you were looking for a 10 minute or longer documentary project then in that case, video length would have an affect because there would be an increase the scope of the story. Yet even so there’s no “Charge by the minute” model that I have seen that has been effective (except maybe in the animation space). But overall with the work that we at Monzo Media Productions create, the length of a video under 3 to 4 minutes doesn’t affect the price. I remember starting my career editing basic webinar videos that were about 30-45 mins…gosh if i charged by the minute with that, revenue would be up by the millions!
- Myth 2 “Every production company charges the same”- This is not true because every production company has a different cost analysis. Some are one man bands, some rely on subcontractors, and others have multiple full-time employees. There are also many who to be honest are not really understanding the value that they provide. I know many who undercharge their clients and that becomes a problem of sustainability for future growth and I know many who overcharge their clients and maintain challenges of sustainability for future growth (if they lose one client it could be disastrous for them).Location is also sometimes a factor based on living and business expenses that pertain to their region. And of course there is skill level and understanding of the marketing of these videos. Remember, all video is not created equal.
- Myth 3 “Equipment determines the cost”- equipment can be a factor but it is not the sole factor. Just because a company owns 2 RED Cameras (Hollywood grade for those who are unfamiliar), it doesn’t mean they are going to charge a value marketed project whereas if someone is just using their phone it doesnt mean they wont charge a premium rate. Some companies always rent their equipment out while others often buy and own it. Experience, expertise, creativity, and the time required for planning, shooting, and editing play a significant role in pricing. A company with high-end equipment but less experience might charge less than a seasoned team with mid-range gear. It’s the wizard, not the wand.
Now that we’ve dispelled some myths, I wanna talk about what you can expect to spend on a video production partner like Monzo Media Productions.
First you’ll want to understand that each project is different which is why we can’t even label our prices on what a video costs. Variations on shoot days, team members on site to shoot and edit, deliverables, gear rental, complexity of the shoot and edit, if graphics are needed, if animation is needed, supply and demand, the potential ROI, the business model of the production company, and ultimately the value of the videos, are some of the factors that we (and many others) consider when pricing out projects. Second, you’re going to want to understand that even if you want a company to only shoot for an hour, you’re not going to get an hourly rate. For smaller projects, most production companies will utilize a half day or even full day rate, so I recommend that you go ahead and see if you can capture more content on the day of filming the main elements, even if you don’t have a need for those extra footage- you’ll still get more bang for your buck and you can always edit that content later on. Plus it often takes more time than only an hour- there’s pre-production, set up, break down, Etc.
That said if you really want to get the most bang for your buck you need to know this. Volume of videos is your friend. Instead of focusing on a single video, think about producing a series of videos that aligns with your audience’s buying journey. At Monzo Media Productions, we often reward brands that invest in a comprehensive video strategy. For example, rather than investing in just one video, such as a brand message video, consider adding testimonial videos, barrier videos, and service-based videos. By doing this, the cost per video can decrease significantly compared to purchasing them individually. We have clients who have saved up to 50% off these videos because they take this approach. You’ll save money and gain a more impactful video funnel to help you reach your goals. This approach works because we can shoot multiple videos in one session, repurposing our time and resources efficiently to create various types of content. Efficient use of shoot days is key to making this happen.
I hope this clears up the mysteries of how pricing works with video production so when you hear from video production companies about costs and they say “Well it depends” I promise we are not lying. Our goal at Monzo Media Productions is to create a strategy that will work for you. If you have any questions or want to dive into creating a video strategy that will help your brand achieve its goal, reach out today and we’ll schedule some time to chat.
