Budgeting Your Video Project
Pricing your video work can be difficult to know your exact ROI. There are multiple ways to gauge the actual value of your video project in real monetary value to your company. Take a look at our case study. Here we have an employee training video and the key driver happens to be labor cost saved from the production of the video.
If we find that a training video saves 1 hour per new employee per year through various data mining methods and plant interviews, then we can apply the following data...
Company Department Turnover: 50 employees per year
- Manager Rate Per Hour: $40
- Employee Rate Per Hour: $25
- Total Labor Cost Per Hour: $65
- Total Yearly Savings In Labor Cost: $3250
- 3-Year Labor Savings: $9,750
With this figure, spending $9750 (Our prices are nowhere near that high) on a single location/department training video would essentially yield a break-even or better result from the training video in value to the business. What is important to remember here is that for every minute of time the employee uses in training, there is also the plant manager's time that is wasted as well.
If there are multiple locations we can reuse footage and apply the same calculation to get a better return on your video budget. Each factory or department is different so there are always different key drivers that establish what your break-even would be. In most cases, employee as well as manager time is a large cost driver that a well executed video can help remedy.
