In the early days of my entrepreneurial journey, I offered predefined service bundles for weddings and events through my video production company. As a seasoned video producer, I eagerly awaited responses from potential clients after presenting them with these packages. However, I often encountered ‘crickets’(silence):-). This pattern gradually diminished when I discovered that clients preferred personalized quotes tailored to their unique requirements, leading to a shift in my approach to better accommodate their desires.
Currently, I offer exclusively tailored service packages designed for recurring needs that share common specifications. This approach stems from my observation that potential clients within my specialty in media tend to have meticulous and discerning preferences.
To streamline communication, I present them with a selection of pre-priced options, allowing them to make a choice that aligns with their financial plan. Should they desire additional features beyond their selected package, an extra charge will be applicable.
This brings us to the question on which between custom quotes and service packages is right for your business? To begin with, lets first delve into why the two are necessary in any business.
How Much Do You Charge For Your Services?
This is a common question that service-oriented business owners get asked by potential clients a lot. If this question is new to you, you may find yourself responding without fully grasping the client’s requirements. It’s crucial to understand the underlying needs behind the inquiry to provide a satisfactory and comprehensive answer.
Many new clients who ask this question do not really know in detail what they really want. For example, someone may specify in their request that they want drone footage incorporated into their video not knowing that this will cost them extra money.
The first thing that you do when a client reaches out to you enquiring about the services you offer is to interrogate them properly so that you understand what they really need. Are they familiar with the service you are providing? Do they have a brief or terms of reference of what they want delivered to them?
Once you know the type of client you are dealing with, you are able to easily decide whether to send them a custom quote or your rate card. Some clients requirements do not require rate cards, they require custom quotes.
With this said, lets now look at the pros and cons of each item.
Service Packages and Custom Quotes Pros and Cons
| Packages Pricing/Rate Card | Custom Quotes |
| Only works for some services. | Works well for all the services you provide. |
| Ideal for recurring events with similar deliverables e.g. wedding, photography e.t.c | Popular for request with clearly outlined requirements and deliverables. |
| Can save one time they could have spent preparing a quote. | You are not limited on the amount you charge. You can charge whatever amount you want. |
| You leave it to the client to make a choice. Only serious clients will follow up on it. | Ideal for requests by companies and government entities. |
| You are in control. You only deliver what you have outlined in the package. No more no less. | You deliver what the client wants. |
| Your rate card/ Packages may be cheaper to some clients making you to loose them. | Can send different quotes to different clients based on your evaluation of their requirements. |
| Needs revisions over time based on demand. | It requires time to draft one and its not guaranteed your client will accept it. |
In the business world, there are diverse strategies for setting service prices. Some individuals find it straightforward to provide custom quotes, tailoring prices to each client’s needs.
Others prefer the simplicity and transparency of a fixed rate card, detailing their service fees, which suits their business model effectively. Both methods have their merits and cater to different preferences and operational styles.
The variety of services you provide may warrant the inclusion of both options. This approach ensures that you’re well-equipped to handle any inquiries that come your way, utilizing the most suitable option for each situation. I hope you have found this article helpful.
You can always reach out to me for a quote on video production services here. I can help you out on that line.
Up until next time bye bye and take care.
Follow me on social media @cheptionymutai.
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