A while ago it happened again.
One of my contacts sent me the following message:
“Paul, my client would like you to voice two animations. Both advertise the same product on the same platform, but each one appeals to a different audience. Both scripts are no longer than 125 words. Normally we’d pay you €250 per video, but the client was wondering if you’d record both videos for €250. After all, these things are very short, and this is for the same product on the same platform. Another option would be to offer the client a $150 discount. Let me know how you’d like to proceed.”
What do you think I should do? Should I voice these two videos for €250 or $350? Should I charge the full €500, or even more?
Well, the answer depends on your pricing strategy, and on how you position yourself in the market place.
Let me explain.
A TALE OF TWO PICKLES
In front of me I have two 24 ounce jars filled with pickle spears. One is a store brand retailing for about two dollars. The other is a jar of Famous Dave’s Signature Spicy Pickle Spears, selling for about five bucks. Both jars contain the same basic ingredient: crunchy cucumbers immersed in an acidic solution.
Why would people pay five dollars instead of two, for ten to twelve pickles, you may ask. The answer is simple. Dave’s spears are distinctly different. His spicy cucumbers tingle your tongue with a signature blend of sweet and heat. They are addictively delicious.
Last weekend I was entertaining guests, and I served Dave’s pickles without telling them. I just put them on a plate. After the first guest took a bite his whole face lit up and he said: “Wow, where did you get these pickles? They are incredible!” Two minutes later everyone in the room was crunching away, and wanted to know where they could buy these special spears.
Yesterday I talked to one of my friends who was with us that evening, and he said: “I had so much fun last weekend. And by the way… those pickles were amazing!”
So, let me ask you this:
Would you rather be an ordinary pickle, or one of Famous Dave’s Spicy Spears?
MAKE A CHOICE
Are you a dime a dozen, or do you have something unique to offer? If you fall into the last category, in what way do you distinguish yourself, and how do you convey that to your clients? You see, believing that you’re special doesn’t get you anywhere. You need to prove it.
Famous Dave is a smart guy. He knows he’s got something awesome going, and that’s why he’s not competing on price. He is competing on added value. Added value can be defined as “an improvement or addition to a product or service that makes it worth more.”
As a voice-over, you add value to a video, a computer game, an ad campaign, an e-Learning program, a bestseller, or a major brand. The right voice can bring credibility and authenticity to a message. That alone can be worth millions of dollars, and advertising agencies know it.
You will never see those millions, but I happen to think that you deserve to be well compensated for your contribution. That will only happen if and when YOU value what you have to offer in terms of your expertise, and your experience.
PRICE LIKE A PRO
One way to convince a client that what you’re offering is valuable, is by using the link between price and professionalism. I’ve said it before, and I’ll say it again: Your rate is more than a number. It is a powerful statement. It says: This is what I believe I’m worth. It is also a way to prequalify your clients.
My rate sheet tells them: I take my job seriously. Lowballers better stay away. Quality clients are welcome. I will treat you with respect, and I will do the best job I can.
Like Famous Dave, I know that what I have to offer is different. My English has a European quality that adds a special flavor to a script. Those who like that flavor have no reason to haggle.
WHY COMPROMISE?
Now, let’s discuss that discount I talked about in the beginning of this blog post. Here’s my take on reducing a fee.
1. Discounts are for people who compete on price only, and for clients for whom price is the determining factor.
Here’s a hint: price is rarely the sole determining factor in a purchasing decision.
If clients would buy based on price alone, it would be perfectly fine to take months to send them a poorly made product, right? They wouldn’t dare to complain because you were the cheapest.
2. But Paul, didn’t the client say that these two jobs combined would be no more than 250 words? Why not give in a little?
Well, there are two hidden assumptions behind that argument. One: This job is something I could record in a heartbeat. Two: Clients pay me for my time. Both assumptions are false.
We all know that most clients have no idea how long it takes to deliver any length of finished audio. Secondly, I don’t charge clients for my time. They pay for my talent, my skills, and for my experience. They pay me for the added value I bring to their production.
3. If I were an on-camera actor, and I’d be featured in two videos targeting different audiences, wouldn’t I get paid in full for both? Then why should a voice actor accept a huge pay cut? Does that make any sense? Just because we’re invisible, doesn’t mean people should take advantage of us.
A MATTER OF TRUST
4. The client promised that both videos would be for the same platform, but how can I trust a claim made by someone I’ve never worked with? Clients will tell you anything to bring your price down. What guarantees do I have that these two videos won’t end up on different platforms? Who’s going to check that?
5. In the beginning of a relationship with a new client you set the parameters. If you accept a certain fee for whatever reason, that becomes your going rate. Don’t blame it on the client. That’s what you’ve trained them to expect.
So, the next time you ask for more money, don’t be surprised if your client comes back with: “But last week you did a similar job for X amount of dollars. Why should we pay you a penny extra?” And you know what? They’re right!
6. If you accept doing two jobs for the price of one (or even less), you’ve just stabbed your colleagues in the back. We are not independent contractors. We’re interdependent contractors. We are connected. A going rate is nothing but the prevailing market price. Every individual pricing decision -big or small- impacts that market. Before you know it, you’re contributing to a downward trend.
RATE REDUCTION
Having said that, here’s where I’m willing to give a discount:
A. When a client commits to a long-term working relationship, and a high volume of jobs.
B. As an incentive for a client to pay in full upon receipt of the invoice.
Some colleagues are in the bad habit of giving discounts to all charities, but I make that determination on a case-by-case basis. More about voice-overs and charities in my article “Work For Free For Charity?”
STICK TO YOUR GUNS
Listen carefully. You don’t have to agree with me when it comes to discounts. In fact, you don’t have to agree with anything I’m saying in this blog. It’s just my opinion. But if you haven’t thought about your value, your pricing, and about your position on discounts, simple questions like the one from my contact can get you in a pickle.
I decided to charge full price for those two animations, and I told my contact why. Taking a stance means taking a risk, and I ended up losing the animation job to a colleague who was willing to do it for less. But the story doesn’t end there.
Two weeks later my contact called me again. Working with the cheaper voice-over had left a bitter taste in the mouth of the client, and they wanted me to step in.
“At full price?,” I asked.
“At full price,” he said.
Being cheap often costs more, but some people have to learn that lesson the hard way. Don’t be one of them.
That day I went to the post office to send my contact a small thank you gift.
“Does this parcel contain anything fragile, liquid, perishable, or potentially hazardous, including lithium batteries and perfume?” the woman behind the counter wanted to know.
“Yes it does,” I said.
“What’s in it?” she asked.
“It’s a jar of Famous Dave’s Signature Spicy Pickle Spears!”
“Oh, those are the best,” she said. “Not cheap, but so worth it!”
Paul Strikwerda ©nethervoice
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PPS The word ‘pickle‘ comes from the Dutch word ‘pekel,’ meaning ‘something piquant,’ and originally referred to a spiced, salted vinegar that was used as a preservative (source.) You should know that I am in no way compensated to promote Famous Dave’s delicious pickles.
I just received the link to this article a few hours after receiving myself an offer to work at a discount for a company I never heard of. Very few details on the job. No word count, no context, no indication as where and how my work would be broadcasted. On the promise to get work on a regular bassis and being fairly new to the VO world, I agreed to lower my rate a little, but not to what I was asked. I asked for more details, and a sample of what the work would be. I never got got a reply. That tells me that they were looking for the cheap pickle. Great lesson for me; I should have sticked to my starting rate. Long live Dave’s pickles !
Would you ever bid on a house without knowing what state it is in? Similarly, know what you’re bidding on before you send out your offer, otherwise you’ll pay dearly.
“Interdependent contractors” — I love this! I’ve seen the lowballing you talk about firsthand in the transcription industry, and the concomitant “downward trend” in pay industry-wide over at least the past decade and a half—such a pickle to be in!–which is one of the reasons why medical transcription no longer pays a living wage as an IC and why I’ve been exploring different career options instead of being a bitter “pickle-puss,” VO being one of them.
Hi, Paul, and HUZZAH! Another insightful, humorous and helpful blog entry! Thank you. I always enjoy, and benefit, from your articles. And I echo the first response that “interdependent” contractor is an excellent moniker for us. Best wishes to you.
Paul, this is so well articulated. Thank you very much for the enjoyable read.
It was a joy to research the augurken, Sean.
Paul – such wisdom and excellently written!
Thank you so much, Richard.
Again, Paul, you spelled it out pretty well.
When someone asks me to discount a project because there are such-and-such many more similar projects to come, I say, “I have a better idea… I’ll charge you full price for the first one, and then we can talk about discounting the others!” The response often given is… “makes sense, can’t argue with that!”
But yeah, you have to know your own worth. Like you, I know what my voice can bring to a project that I’m well suited for. Often the client will admit that to me while asking for a discount adding credence to my case of NOT discounting.
In fact, I will not compete AT ALL based on price alone. I simply ask them to find someone else… not interested. Especially if I feel a different voice is better suited to a certain project anyway.
Btw, these days, I know where my voice excels and where it doesn’t so I can avoid a lot of discussion that is not centered on what I can bring to a project.
Thanks for your thoughts and letting me share some of mine.
Play your strengths, cowboy, and the prairie will be at your feet!