To Itemize Client Estimates or to Not? That is the Question.
When I first started in this industry, before I knew what Quickbooks was, I used to make quotes/estimates using MS Excel or even MS Word. I was naive to the perils of dealing with clients, and simply thought they would all respect my price points, and not haggle much. They would all just seem to understand that I was a professional, and the prices I was giving them reflected the time (measured in units of frustration) it would take for their project. I didn’t give much thought to whether I should itemize or non-itemize the line items I was charging for on the invoice. I’d just put them all on there in plain site. I had nothing to hide, so why would there be a problem if the client could see the itemized list of charges?
Silly boy. What a maroon.
I soon came to find that nearly all clients have to be babied; hidden from the harsh realities of what we’re billing for. Otherwise, it’s a barrage of this:
“$100/hr for graphics?! My son makes those things on his Macbook.”
“$400 for a voice over artist?! I can just do it myself.”
“I can do my own makeup.”
The funny thing is, the client is right about all of these queries. You CAN find it cheaper down the road. You CAN read the VO yourself, and of course you CAN do your own makeup.
I also CAN retile my bathroom, but I shouldn’t. Why? ‘Cause I suck at it. You should see my condo. If Bob Villa saw my grout work, he would roll over in his grave. Side note: Is Bob Villa dead?
So, as a result of this constant client brow beating in regards to price/quality, my quotes started to look like something a mafioso front company would put out.
Videographies=$10,000.00
Talent=Extra
Money=Up front and Green
I did OK with this for awhile, but every now and then I get the more discerning client that wants an itemized list of charges, and would rather not go to an ATM. I’m being sarcastic mostly, cause now we take visa/mc.
Despite the fact that now I list everything included in the quote, just without the individualized price list like this…
Videography for 2 studio days including Video Camera and operator, Audio Equipment and operator, Lighting, Production asssistant, Makeup = $5000.00
…I still get requests for a fully itemized grocery list of charges. VO equals X. Camera equals X. All this does is allow them to price check you with every other vendor in town, and perhaps in the Philippines if they check Craigslist. You can’t always compete in price in this industry. It’s artistic. It’s a service. As a customer they have to make judgements based on a variety of points including customer service, reliability, creativity/talent and yes, price too, but the itemized list provokes price checking.
So, what’s the solution? Probably somewhere in between complete price transparency and blind trust. I’m curious as to what you guys do in regards to invoices – your processes and procedures.
One Response
Hey joe I love this article you wrote here. You right about it but the one I love is the ones who ask you for a quote and don’t tell you anymore about the project so for me and I am sure you would agree it’s hard to give them one cause you do not know if it will take one do or two days to shoot or you may need another camera or a dolly.