Written by Joel Delgado & Scott Cremer
Video production has become an essential tool for businesses and individuals looking to communicate their message in a visually appealing and engaging way. As the demand for video production services continues to grow, understanding how pricing is determined is crucial for both clients and video production companies.
Making this creative content requires the collaborative involvement of many people, each with their own specific skill set and role. The video’s concept, its complexity, and the methods used in its production will all determine what ends up on your bill. Maybe you’re keeping things simple; But maybe you want to wow your audience with GFX (special effects) and striking visuals.
Here we'll discuss how pricing is determined so you can understand where the numbers come from.
The Video Production Process
Before we dive into pricing, let's first look at the video production process. The video production process typically involves the following stages:
Pre-Production: This stage includes everything that happens before filming begins. This could include scriptwriting, storyboarding, location scouting, casting, and scheduling.
Production: This stage involves filming the footage. Depending on the project, this could include a single shoot day or multiple days of filming.
Post-Production: This stage involves editing the footage, adding music and sound effects, color grading, and adding any special effects. Often this stage takes twice as long as the production stage.
Now that we understand the video production process, let's look at the factors that determine pricing.
Factors Affecting Video Production Pricing
Type of Video: The type of video being produced plays a significant role in determining the price. For example, a simple explainer video will cost less than a commercial with complex graphics and special effects. Do you need both horizontal and vertical video versions?
Length of Video: Longer videos require more time and effort to produce and will, therefore, be more expensive.
Production Quality: The quality of the video being produced will also affect the price. For example, shooting in 4K resolution will be more expensive than shooting in 1080p.
Equipment: The equipment needed to produce the video will also play a role in pricing. If a specific camera or lighting equipment is required, this will add to the overall cost.
Crew Size: The size of the production crew needed will also affect the price. For example, a video with a small crew of 2-3 people will cost less than a production with a large crew of 10 or more people.
Location: The location of the shoot can also affect pricing. If the location requires special permits or is difficult to access, this will add to the overall cost.
Turnaround Time: If a video needs to be produced quickly, this will also affect the price. Rush projects often require additional resources and effort to meet the deadline, which adds to the overall cost.
Additional Services: Additional services such as motion graphics, voice-over, and custom music will also affect pricing.
How Video Production Companies Price Their Services
After understanding the stages of video creation and grasping what the client wants in their video/s, a quote can then be generated.
Most video production companies charge a flat fee for their services. This fee will typically include everything from pre-production to post-production. The flat fee approach makes it easier for clients to understand the cost of the project upfront.
As of 2023, in this type of creative industry the set dollar amount is charged per minute of finished video. The current industry standard starts around $1,000/minute, and can range up to $20,000/minute.
Alternatively, some video production companies may charge an hourly rate for their services. This approach is typically used for smaller projects that don't require a full production crew.
Another approach to pricing is to charge a day rate. This approach is often used for larger projects that require multiple days of filming. The day rate covers the cost of the crew and equipment for each day of production.
There are also fees for revisions depending on the company policy. Some companies allow for a few revisions in the post production stages but after that, an hourly rate is applied.
Along with the above pricing models, some video production companies may also offer custom pricing packages that are tailored to the needs of the client. For example the request for several videos in a video series. The price of the first video in the series may be higher than subsequent videos since there may be additional costs associated with the initial planning and setup of the project. However, subsequent videos may be less expensive since some of the pre-production and setup work has already been completed.
Additionally, when producing a video series, it's important to consider the overall theme and consistency across all videos. This means that additional time and effort may be required during pre-production and post-production to ensure that all videos are consistent in terms of style, tone, and branding.
It's also worth noting that when producing a video series, it's essential to consider the timeline for production and delivery. Clients may want all videos delivered at once, or they may prefer to stagger the release of the videos over time. This can affect the overall pricing of the project and should be discussed with the video production company during the initial planning stages. This structure is often used for larger or more complex projects that require a more customized solution.
Wrapping up, the pricing of video production services is determined by several factors, including the type of video, length of the video, production quality, equipment, crew size, location, turnaround time, and additional services. Video production companies typically charge a flat fee, hourly rate, or day rate for their services, with some companies offering custom pricing packages.
Understanding how video production pricing is determined can help you make informed decisions when selecting a video production company, and can help video production companies provide transparent and accurate pricing estimates to their clients.
Feel free to message us here for a free quote on your next creative video project!