work for free for charity

To Discount Or Not To Discount

by Paul Strikwerda in Articles, Freelancing, Money Matters 37 Comments

Famous Dave’s Signature Spicy Pickle SpearsA month or so ago it happened again.

One of my contacts sent me the following message:

“Paul, my client would like you to voice two English 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, or should I charge the full €500?

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 can 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 setting a downward trend.

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 habit of giving discounts to 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. I hope you’re not 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 it’s so worth it!”

Paul Strikwerda ©nethervoice

PS Be sweet. Please retweet!

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. 


Work for FREE for Charity?

by Paul Strikwerda in Articles, Freelancing, International, Money Matters 28 Comments

The other day, one of our colleagues posted the following on Facebook: 

Now offering FREE voiceovers for charity and animal rescue organizations. Please spread the word…

 When I first saw this message, my reaction was mixed. At first glance, it looked like a noble thing to do. Times are tough for charities, so why not help them a little. The less they have to spend on advertising, the more money is left for the cause. What could possibly be wrong with that?

Read the rest of this story in my new book. Click on the cover to access the website and get a sneak peek. Use the buttons to buy the book.

Making Money In Your PJs cover