Over the past 10 years, I’ve gained extensive experience in video editing and decided to establish my production company in 2020. Most years, I’ve achieved impressive six-figure earnings, except for one. However, I’ve noticed a misconception that hinders many, which, interestingly, is often the opposite in reality. I’d like to share some insights I’ve learned along the way.
Navigating Bid Challenges
Firstly, it’s crucial to recognize that some individuals may not have the financial means for video production, and they won’t be your potential clients. Instead, focus on targeting businesses that value quality and have the resources to invest in your services.
Avoid pursuing enterprises with ultra-cheap offerings, startups, or those who can’t spare the budget or time for professional video production, as they might not yield the return on investment you seek.
To make investing in video worthwhile, aim for businesses selling products or services in the hundreds or ideally thousands of dollars. For instance, a sofa seller at $2,500 per customer needs your video to attract just four new customers to generate $10,000 in sales.
In contrast, a coffee shop selling $3.50 cups of coffee requires 5,000 new customers to achieve the same outcome. Therefore, targeting high-end businesses is more effective, as low-end enterprises might not have the budget to afford professional video production.
Moreover, focus on businesses with at least 7-10 employees, as they are more likely to allocate funds for such marketing initiatives. Companies without a budget planned for video production might struggle to pay for it adequately.
Reasons you Loss Bid
The reason you didn’t get the bid/job might not be that you asked for too much or lacked skills; it’s often about perceived value. Companies may not reveal why they chose someone else, leaving you to assume your price was the issue. However, being awarded bids at higher rates indicates that perceived value matters more. For instance, winning a 15K bid when others quoted 7-8K shows that clients saw added value in your service. Multiple quotes set the market price, so positioning yourself as offering exceptional quality and value can help you secure higher bids.
When some of you bid low, say 4-5K, clients may perceive your work as subpar because they compare it to the average bids. On the other hand, when I bid 10K, they assume “greatness” due to the higher cost.
For larger companies, playing it safe is preferred. They value their time and are wary of cheap offers, associating them with potential drawbacks like poor quality or delays. This perception can harm your reputation. Some companies even reduce their prices after losing a bid, appearing desperate and less appealing to clients.
Presenting yourself with higher bids can convey value and professionalism, attracting clients who appreciate quality over lower costs.
Furthermore, when a company has experience with video production or knows of other companies that do, they often base their expectations on price ranges. If your quote falls below their price range or is significantly cheaper, they might not consider you. It’s similar to a home buyer expecting a certain price range for a neighbourhood, and a drastically cheaper offer raises suspicion of potential issues, regardless of actual quality.
Offering very cheap prices can also create doubts about the value or quality of your services. Companies or agencies might perceive lower prices as a sign of inexperience or inferior work. Aligning your pricing with industry standards can instil confidence in clients that your work meets their expected level of quality and value
Ngnpostal shares this to remind you that sometimes you hold yourself back. You create reasons for not getting the job, but it’s crucial to recognize your self-doubt. Avoid targeting cheap clients in the long run, as they may not value your skills.
If you believe in your work’s quality, don’t feel stuck climbing a ladder. You can confidently set higher rates and quote a project at 100K. If someone agrees, you’ll have the means to hire top-notch professionals to deliver exceptional results. Have confidence in your abilities and embrace your worth.