Can £10,000 be classified as a CHEAP video production?

The CHEAP FAST GOOD project management principle is FLAWED because all those terms are subjective as there is no universal definition for what makes something either CHEAP, FAST, or GOOD.

For example, £10,000 to produce ‘Where’s Barry?’ for Toyota was cheap, for the following reasons:

· The average cost of a corporate video productions in 2015 was £25k.

· The other costs for the same project – shutting down the production line for the training session - cost Toyota £250k.

· Live action, scripted, fictional drama using a cast of actors is an expensive medium.

· The costs of similar projects I have created for other clients start at £22k.

That doesn’t mean that every £10k video project is cheap, but that CHEAP is all in the eye of the beholder, and is dependent on the circumstances of each individual project.

For example, the recent sci-fi film ‘The Creator’ cost $80 million. And in an article from Variety they declare:

“…its $80 million price tag (is) a pittance for filmmaking at the scale of (t)his globe-trotting, cast-of-hundreds sci-fi opus.”

You see, even a budget of millions can be viewed as cheap.

And that raises an interesting point because I believe that cheap shouldn’t be the focus of your video project, it should be the VALUE the project generates that key, which is tied to the video's success at achieving the project’s goal.

So, if your video project is for marketing purposes to get more sales, then the value would be the difference between the 'average cost of acquiring a customer' and your 'existing customers average spend'.

For example, if you spent £10k on a marketing video that got you 10 new customers, your 'average cost for acquiring a new customer' would be £1k.
If your customers usually spend £2k on your products or services then your initial £10k investment is adding value to your business, you're doubling your investment, and you should probably continue with that strategy!
Alternatively, if your goods/services only generate an average of £50 per customer, that original £10k is a bad investment.

So, here’s the lesson:

The cost of your video production is important, but it is more than the bottom-line cost that you should be considering. Understanding the costs in relation to your objectives is where you derive the real value from your investment.

I hope that makes sense, and gets you thinking about how to maximise your spending on video communications.

If you would like some assistance working out how to effectively allocate your video budgets to achieve your business goals then please drop me a line in the comments or DM me.

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#samebutdifferent