By Kevin Price, Executive Editor, USADT.
Recently I had a marketing authority read an advance copy of my up coming new book, “Making New Rich Books Work for You.” He loved it and shared the ideas behind it with a business associate in the video space. He liked it too and began seriously implementing the concepts. He is now doing his editing behind the desk and having his clients do a great deal of the work themselves. He is able to produce viable videos at a fraction of the time, I was told. He charges around $1500 an hour and usually produces one in an hour. By modern business thinking, this is great, but it is far from New Rich. I’ve been approached by video people about doing partnerships, but I would want all the editing done somewhere else. With my national TV show I went from a US editor (who required significantly more per hour) and got my videos edited in Eastern Europe — 30 minute shows produced at a very high quality for less than $30 each. If I were going into partnership with someone who wanted to charge $1500 an hour, it would be to oversee the video qualities of my Eastern European team. He could easily sign off on ten videos in an hour (probably more), with all of them edited at $300. $1800 for ten videos instead of $15,000 for the same number done entirely in the US. You do the math. This approach would have several advantages:
- It would allow you to rapidly grow your business based on demand instead of making your high end editor do all the heavy lifting with limited bandwidth, you would just hire editors as needed.
- In addition to easy “ramp up” with editors as needed, you can easily cut them, based on demand, without minimal harm to your profits.
- You can dramatically lower pricing, offering domestic quality videos at cheap, outsourcing pricing.
- The lower the price, the greater likelihood of being a repeat customer.
- The lower the price, the softening of customer expectations too.
My point with all this is that we should continuously challenge our thinking about the way we do business. I ask the question all the time, “did I go far enough?” In this case, I would go even further. I would figure out how to drive the price below $200 and sell them on a subscription bases. Offer a plethora themes and let their clients make their own monthly informative short to market a company. Ferriss says (and I agree based on my experience) that the magic is in subscriptions at pricing below $200 a month. It keeps them long term and keeps their expectations modest.
Ask yourself as you grow your “New Rich” business, what can I do next? How can I go further? Setting it up with your “New Rich” DNA from the beginning, makes everything easier and better.
Kevin Price has another book in the works following the publishing of Making New Rich Books Work for You. It is a daily reader. it will be made up with content like this article. Check the box below the comments if you want to get articles like this and more in your email.