Whoa… your prices are getting expensive.

Not exactly a direct quote from a client recently. I may have substituted whoa for $@&$% but you get the drift. For a split second I thought, yeah fair enough. But then I did a little head mathematics, which for me is kinda like running a marathon if you know what I’m saying. Anyway, result of getting the neutrons flowing was that the price that he thought  so expensive, was in fact the same price that I’d been charging for 10 years. Yep not a single price increase in ten whole long years.

First I bet if this client looked at his other suppliers charges over 10 years he wouldn’t find many hadn’t changed. I know, cos I looked at some of our imputs. Inward freight on his job, was $5 ten years ago, now $25. Fuel which we use quite a bit of on this clients jobs, well we’re not even going there except to say UP. Maintenance on equipment way up, cost of equipment not a lot of difference just a little on the up side. Cost of film way down cos we don’t us it on his jobs any more. (See I knew it, it doesn’t cost you for film so your prices should be lower). Ah yes, but the cost of retouching, file and color correction archiving and file management  is now way more than what film cost was. Our lab costs haven’t increased greatly, but then, much of the work they use to do is now done by the studio in house. You see labs which use to supply many of our technical services, now basically only output the finished files we deliver to them. Yes they still have expensive state of the art equipment to preform the outputs. But labour intensive technical services now fall back onto the studio. The list of course goes on. Phone and data charges way up, electricity 25% increase in the last 3 years and we’re using less, rates you guessed it UP.

Sure we have had price increase for some of our  services, most have remained pretty stable with a couple going down. To say we’re getting expensive on a job that is being charged out at the same rate as ten years ago, is maybe  a tad rich.

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