Is My Offer Good Enough?

31 replies
I guess I'll find out soon because I just went live with it. I offer big-time video and television productions at a price any business can afford -- $99 per month. These are productions that make clients look like Fortune 500 companies. They look like $100,000+ productions. That's a bold claim I know, but we also do $100,000+ productions, and these $99 per month productions use the same million dollar sets, same camera cranes, and same HD cameras and lenses as the big-budget stuff.

I offer a 100% money-back guarantee, and clients can cancel at any time. Every business with a website, I would think, should have one. My question is, is there anything else I should be adding to the offer to make it irresistible? Also, should I open this up to SEO companies etc. to offer as part of their client packages? The SEO company could pay me the $99, and mark them up to $149 etc.

Here's my offer: Discount HD TV Commercial Production and Video Production

At this pricing I need to sell a lot of these to make it worthwhile, so I'm just trying it for a few days -- will switch back to a traditional cash plan if the response isn't satisfactory.

Any advice would be appreciated!
#good #offer #video
  • Profile picture of the author coreypaulotten
    Definitely an attractive offer. My question is for you. Are there contracts on this?

    What if they pay you for your work and cancel the next month. You just created them a $100,000 video for 99 bucks.

    My only thing is if it truly is that quality. You may not be charging enough to make it worth your while.

    Just a thought.
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    • Profile picture of the author Tim Pipher
      Hi Corey.

      There's no contract, so clients can cancel after a month or two, in which case I'll lose money. Some will do that, but I'm hoping most will want to continue using their video for longer. Most of our clients use their videos for a long time.
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  • Profile picture of the author Tom B
    Banned
    I don't understand the offer at all.

    A monthly fee for a video?
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    • Profile picture of the author Tim Pipher
      Originally Posted by Thomas Belknap View Post

      I don't understand the offer at all.

      A monthly fee for a video?
      It's pretty simple I think. It's like leasing a car or renting an apartment. You pay monthly for as long as you want to use it. If you've got the money to pay cash, great, but lots of people don't, and thus my offer.
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      • Profile picture of the author Tom B
        Banned
        Originally Posted by Tim Pipher View Post

        It's pretty simple I think. It's like leasing a car or renting an apartment. You pay monthly for as long as you want to use it. If you've got the money to pay cash, great, but lots of people don't, and thus my offer.
        Tim, have you tested the site?

        I really don't think it is that clear. What if you want to change up videos after 4 months? Will you do another video?

        It sounds like the potential for a huge loss of money (for you) running it this way.

        Just trying to give you some feedback here.
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        • Profile picture of the author Tim Pipher
          Thanks Thomas. Yes -- we'd switch up a video after four months -- though I'd hope clients, if they liked their first video, would want to keep it live. I really appreciate your concern about me not losing money on the offer, but I'm more interested in making the deal so compelling for clients that they can't resist. We have the studio and personnel -- really want to keep it humming at all times. However, it must be a pretty good offer if people are trying to save me from losing money on the deal -- thanks Thomas and Corey!
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        • Profile picture of the author ronrule
          Originally Posted by Thomas Belknap View Post

          Tim, have you tested the site?

          I really don't think it is that clear. What if you want to change up videos after 4 months? Will you do another video?

          It sounds like the potential for a huge loss of money (for you) running it this way.

          Just trying to give you some feedback here.
          I think it's a pretty interesting offer. I've been in the DRTV/infomercial space for a while and know what goes into a production - what he's doing is entirely plausible if you have the facility at your disposal. Actor reads a script in front of a green screen, post production is templated out, owner supplies the script and creatives ... if your crew costs are already on payroll, the only individualized cost is the actor doing the read. It's definitely doable for the price.

          It's an interesting model, and the buyout price is reasonable.
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          • Profile picture of the author Tom B
            Banned
            Originally Posted by ronrule View Post

            I think it's a pretty interesting offer. I've been in the DRTV/infomercial space for a while and know what goes into a production - what he's doing is entirely plausible if you have the facility at your disposal. Actor reads a script in front of a green screen, post production is templated out, owner supplies the script and creatives ... if your crew costs are already on payroll, the only individualized cost is the actor doing the read. It's definitely doable for the price.

            It's an interesting model, and the buyout price is reasonable.
            Yeah, it is interesting and hopefully Tim can get it going.

            At that price, it would be hard not to take a chance to at least test it out.
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          • Profile picture of the author Tim Pipher
            Originally Posted by ronrule View Post

            I think it's a pretty interesting offer. I've been in the DRTV/infomercial space for a while and know what goes into a production - what he's doing is entirely plausible if you have the facility at your disposal. Actor reads a script in front of a green screen, post production is templated out, owner supplies the script and creatives ... if your crew costs are already on payroll, the only individualized cost is the actor doing the read. It's definitely doable for the price.

            It's an interesting model, and the buyout price is reasonable.
            Is Ron your real name? You're so accurate that I suspect you actually work here and are hiding your identity.

            You're right -- everything's here and I'm paying for it whether I'm using it or not. It's not simple green screen, though. There is a green component however. Disney/ABC, NBC/Universal, Turner (CNN/TNT) and my studio share a technology that allows our cameras to move in a full 3D environment adding huge production value (versus typical green screen in which cameras usually can't move). Even though Disney has their own set-up used by ESPN, Disney also uses my studio for Disney XD. The studios I mentioned are not generally open to the public and usually won't do the types of commercially oriented productions we do -- and will charge you literally 100 times more on the few occasions that they do.
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  • Profile picture of the author Cobaki
    It is a great offer and if I were a potential client, I would really grab it because it seems like there is no room for loss for me here. However, I do not think this kind of offer will benefit you in any way, except for when you get the chance to find a client that would really use (and not just buy) your offer.
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    • Profile picture of the author Tim Pipher
      Thanks Cobaki. It seems like everybody's worried about me not making enough or losing my shirt, while I'm just worried about offering something amazing to prospects and clients. If people take me up on the offer, it will be good for me too, I think.
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      • Profile picture of the author Cobaki
        Originally Posted by Tim Pipher View Post

        Thanks Cobaki. It seems like everybody's worried about me not making enough or losing my shirt, while I'm just worried about offering something amazing to prospects and clients. If people take me up on the offer, it will be good for me too, I think.
        Well, making money is what businesses are for, in the first place. Aren't you worried about making efforts to set everything up for your clients and just lose them that easily because they changed their mind? Giving them a 100% money-back guarantee, if you are going to ask me, is not that practical.
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        • Profile picture of the author Tim Pipher
          Some will cancel early I guess, but my clients are people who contact me because they need videos, usually for their websites or to sell their products. I can't see why a client who wants and needs a video would cancel their video from me to get a lesser quality and more expensive video made elsewhere.
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          • Profile picture of the author ronrule
            Originally Posted by Tim Pipher View Post

            Some will cancel early I guess, but my clients are people who contact me because they need videos, usually for their websites or to sell their products. I can't see why a client who wants and needs a video would cancel their video from me to get a lesser quality and more expensive video made elsewhere.
            The ONLY problem I see on that front is that the owner could scrape the Vimeo video and then just upload it themselves to YouTube (or their own account) and never make the second payment. There are tools that do that, so having the video in your own account doesn't fully protect them from getting a local copy. Yeah they won't be the masters, but if all they wanted was a web video they probably don't care.

            And people WILL do this ... the question is will it be a small percentage of your customer base or a large one. When you're selling anything online, there will always be some loss, it comes with the territory, but it may be a small enough number that it doesn't affect the bottom line.

            I gotta say though, I really do like the concept. I still have access to the 30,000 square foot studio my office used to be in, and I might give your service a shoot in the next few months here. For me the convenience factor of not having to put the production together makes it worth the price. At a minimum I'd end up paying $1,000 using post guys and talent who owe me favors, all for a video I'd be retiring in 6-8 months and looking to re-shoot with fresh content anyway. Your model makes more sense.
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            Ron Rule
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            • Profile picture of the author Tim Pipher
              Hi Ron.

              You're right -- I will get ripped off a certain percentage. Clients agree, though, as part of the order form, that I will charge their credit cards $2,000 if they are found to be using their videos after cancelling. And the most likely place to find the pirated videos will be on their websites -- easy for us to check. I have to say, though, that 99% of our clients who order production from us seem to be solid, responsible business owners, who wouldn't be inclined to stick it to us for a relatively small sum. Plus, they know I'll never make videos for them again -- and many of them need ongoing production. If they rip us off they'll have to pay some other company lots of money for their next videos (assuming they want good professional production).
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          • Profile picture of the author Cobaki
            Originally Posted by Tim Pipher View Post

            Some will cancel early I guess, but my clients are people who contact me because they need videos, usually for their websites or to sell their products. I can't see why a client who wants and needs a video would cancel their video from me to get a lesser quality and more expensive video made elsewhere.
            I mean, don't get me wrong, it is an excellent offer and you will really get a lot of people attracted to it. But you will never really avoid encountering people who will book for your services then just go away because they found something better. Aside from your amazing deal and your high quality service, you will have to think of something that can give you the security that they will not go elsewhere after they have already paid, that's all.
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  • Profile picture of the author domainscience
    I love it.
    However, waaaaaaay toooooo much money.
    Please convince me why I should put this on my site when I can have a pro one done for a couple of hundred dollars?
    At $99 a month, that is illogical to a small business such as my self.
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    • Profile picture of the author Tim Pipher
      Agreed. If you can get a great video produced for $200, you're better off with that deal. Most small businesses, though, want videos that will make them look like big businesses. And if they don't want that, they should. Big budget videos (or videos that look like big budget videos) give their prospects and clients confidence to do business with them or buy their products, and they sell more -- nobody disputes that. If there's a way of getting a big budget look for $200, there are a lot of studios and employees here in Los Angeles in big trouble.
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    • Profile picture of the author ronrule
      Originally Posted by domainscience View Post

      I love it.
      However, waaaaaaay toooooo much money.
      Please convince me why I should put this on my site when I can have a pro one done for a couple of hundred dollars?
      At $99 a month, that is illogical to a small business such as my self.
      I'd really like to know where you think you can get a video like that done for a "couple hundred dollars" - something like these would be a $30,000 - $55,000 job at my old studio (I have nothing to do with the OP or his business, I just know this market very well). $99 per month is a steal.
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      • Profile picture of the author Cobaki
        Originally Posted by ronrule View Post

        I'd really like to know where you think you can get a video like that done for a "couple hundred dollars" - something like these would be a $30,000 - $55,000 job at my old studio (I have nothing to do with the OP or his business, I just know this market very well). $99 per month is a steal.
        True. I do not see where the business owner gets benefits with this kind of set up. It is almost like a giveaway to people. Those who are knowledgeable about the whereabouts of the industry may even think that they will only get a low quality video because of its cheap price.
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        • Profile picture of the author Tim Pipher
          I think Ron was referring to domainscience who said he could get quality professional videos for even cheaper than my $99 per month deal ($200 total).
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        • Profile picture of the author ronrule
          Originally Posted by Cobaki View Post

          True. I do not see where the business owner gets benefits with this kind of set up. It is almost like a giveaway to people. Those who are knowledgeable about the whereabouts of the industry may even think that they will only get a low quality video because of its cheap price.
          Big numbers in small increments. A mere 1,000 customers- which is nothing - paying $99 per month = $100k a month for hosting video on a vimeo account. Long-term thinking will always beat quick gains. Math wins every time.
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          • Profile picture of the author Tom B
            Banned
            Originally Posted by ronrule View Post

            Big numbers in small increments. A mere 1,000 customers- which is nothing - paying $99 per month = $100k a month for hosting video on a vimeo account. Long-term thinking will always beat quick gains. Math wins every time.
            Math does win which begs to question what is the break even point? Can he get enough customers long term to offset those that break commitment before the break even point.

            Every time someone wants a new video will cut into his profit. I can see a customer wanting to change up videos with fresh content. Maybe a fee per video plus monthly?

            What type of volume can be handled while still keeping day to day projects moving along? Any problem with his higher priced projects being cannibalized with this low fee offer?

            You really have to look at the market. Look at this market, "internet marketing", you got people coming in and out all the time. I would say the drop off rate is pretty big. You could make good money offering low priced monthly fees but you could also be leaving money on the table since so many people end up leaving the market onto something else. Sometimes it is better to charge higher prices because of things like that.
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  • Profile picture of the author JohnMcCabe
    Tim, it's an interesting offer, once you understand it.

    My only recommendation would be to make the text portion of the offer a little clearer. Like many prospects, I don't watch video until after I check out the text portion. And it's not clear what the $99/mo covers - is it a lease, as you explained here (analogous to leasing billboard space) or is it a payment plan for purchasing the video outright?

    As for the folks worried that you'd be losing money? They don't get the benefit to incremental income that helps cover fixed overheads.

    There are a lot of businesses that offer bargain continuity services in order to keep crews/equipment working and help cover costs you would have to pay whether they work or not.
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    • Profile picture of the author Tom B
      Banned
      Originally Posted by JohnMcCabe View Post

      As for the folks worried that you'd be losing money? They don't get the benefit to incremental income that helps cover fixed overheads.

      Talk about a leap. Let's not get carried away with what people understand or don't.
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  • Profile picture of the author mpluto
    I think you have a brilliant service!!!

    However, I was able to understand the brilliance when I got to here:

    Note 1: Other video production companies' 30 second commercials at this level normally cost $50,000 or more. </span> Ours cost just $99 per month for a gorgeous one minute or less video or commercial. Two minutes or less are $199 per month, three minutes or less are $299 per month, four minutes or less are $499 per month etc. What's the difference between their $50,000 productions and our $99 per month productions? Ours are much better! Better cameras, better lenses, better sets, and better format. You get to choose one of our great professional actors, who are included in the price. Plus, our videos are High Definition.

    Before, I thought I have to create videos myself manually... Or something of that sort.
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  • Profile picture of the author Tim Pipher
    Thanks for the comments guys. I'm not overly worried about people swapping out their videos to the point that I lose out for two reasons:

    1. My clients, even though they're not spending big money on their videos, don't take them lightly. It's a big deal to them (and us) and once they make the effort to get a great video they don't have the time and inclination to do it over and over.

    2. If a client cancels soon after they receive their video, I simply will decline their business next time so they can't stick it to me more than once.

    But as some of you have hinted at -- don't worry about me. This will be fantastic for clients and good for me too -- as long as clients take me up on the offer.
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  • Profile picture of the author misterme
    Originally Posted by Tim Pipher View Post

    My question is, is there anything else I should be adding to the offer to make it irresistible?
    The script written by a pro copywriter. Make it all "done for you."
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    • Profile picture of the author midasman09
      Banned
      Hey Tim....I just found this thread and I'd like to comment.

      A guy in my town (Roseburg, Oregon) was charging $249 initial set up and $99/mo for his videos....which are pretty Good ($348 initially and $99/mo)

      And....he added an "extra feature", which you might consider to enhance your program.

      He ranked his videos for the "NAME" of the business so that when someone types in the Business Name of any of his clients....up comes a Full Color Thumbnail of the Video.

      Take a look;
      Type into Google river rock spa canyonville or and see what comes up on the first page (for the Name of the Business)

      Just a little extra "service" that clients like.

      The "price-point" I've found that works for me (in small town America) is;
      $197 initial set-up and $97/mo for the first 3 mos ($291) $197 + $291 = $488.....which covers my initial cost PLUS profit.

      Then....it's $97/mo until they want to cancel.

      I'm using PLR Videos from Dave Cisneros, Peter Beattie and Nick Mann and adding Logo & Contact Info on the last page....so my production costs are NILL.

      Don Alm
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      • Profile picture of the author Ross Bowring
        The best thing you could do is make your headline a simple and compelling summation of the offer. Because right now you have to work to figure it out. People will not work for that information. You must spoon feed them. A confused mind will bolt for the exits.

        --- Ross
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        • Profile picture of the author leebelisar
          Is there a contract?
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