As a media production company, we often find ourselves in the position of trying to answer this question from clients: “What value will the media you produce for me bring to my business?” That is, if they’re spending $10,000 dollars on a video for their website, will they generate $100,000 dollars in business? More? Less?
That is a very difficult question to answer. In fact, it’s impossible. We can produce a professional, high-quality product but we can’t quantify what the response will be. What we can quantify is how we’re able to sell the client on media production. And that has to do with a theory we found in a blog post entitled Finding Value In Video Production from a company called Identity Visuals:
“It’s only when the buyer’s perceived value exceeds that of the seller’s perceived value that something is sold.”
To get to a seller’s perceived value, the blog post highlights a very easy-to-follow formula. First, it takes into consideration the hourly rates for each member of the team. Next is the overhead element, which includes renting studio space, hiring a crew, etc. There’s also the profit aspect, which allows us to grown as a business. And finally, there’s the number of hours it will take to complete the project. Here’s what the formula looks like:
(Talent/hr) + (Overhead/hr) + (Profit/hr) x (Hours worked) = Value
As for the buyer’s option for determining perceived value, it’s not as concrete. It depends on everything from a company’s goals and strategy to methods of marketing. What also comes into play is how the media production will be used. Is it sales-focused or impression-focused? The former is designed to increase short-term revenue while the latter is more abstract in that its main goal is to connect with an audience and provide an enjoyable experience rather than an immediate sale.
Not surprisingly, there are formulas to calculate the value of these disparate approaches. Find out what they are by checking out the blog post Finding Value In Video Production.
And once you come to understand which approach is best for you in terms of value, check out some of Eaglevision’s media production samples. We’re confident that our value will be self-evident.