How Much Does It Cost For Video Production Services?

Videos have become an engaging way to promote business these days. Nobody wants to fall behind their competitors in the race. Video content is essential in creating a brand image and raising credibility. It can even explain a particular product and introduce a business' internal team.

Do you know how much does it cost for video production? This pricing guide is about how much you can expect to pay to hire a video production company. 

What Is The Average Cost Of A Video Production Service?

Video production service companies typically charge around $100 to $149 per hour. These services offer casting, storyboarding, scout film location, video editing, etc. Whatever your need, be it a corporate video or a full-length film, it requires more than shooting. Between pre-production and post-production, there are lots of steps involved.  

Video Production Cost Estimation 

Being a business owner, you want to make the most of your investment. Whatever you invest in video production should be result-yielding. But what will be the precise amount that you have to pay? Here is a breakdown of the factors that contribute to the overall cost of your video:

Location

The cost of a video production service may differ depending on location. However, some locations may not charge any fee. So, if you are running on a tight budget, look for those where you can shoot for a minimal cost or free.

Travel Costs

Certain travel costs can be included, but that depends on your provider. These costs can be accommodation, transportation, food, and much more.

Time

One of the key factors determining the cost of producing a video is time. It may take several hours or days to capture what you want, along with post-production. Some video production companies may charge for per-day shooting, while others may charge on an hourly basis. The per-day rates are supposed to be higher.

Equipment

The crew members from a video production company may charge a fee for equipment. These fees can also cover insurance and other costs for equipment maintenance. Small-sized crews might use rented equipment or tools, but that might depend on the project's requirements.

Post-production

Post-production is the phase that demands the most hard work after all the recording and filming. The post-production stage entails adding music, text, and graphics, editing the clips, and more. Every production company will offer a specific number of edits, so you must check before hiring one.

How Do Video Production Companies Make Money?

Like a film, there may be involvement of cinemas, theaters, and distributors in a large-scale video production. The collaboration of all these will produce a piece of video content.

There is involvement of notable entities in video production. Hence, it showcases the amount of money invested during the entire process. Now, the question that comes to mind is how a production company makes money. Take a glance at some of the money-making ways that production companies often practice:

Joining Up With Distributors

Collaboration with distributors is a significant income source for a video production company. This partnership is settled with the signing of a contract with distributors. All that will be based on the revenue they will generate with a particular video. But, the chances of whether a video will do well and make a profit are not always guaranteed.

Also, the distributors take charge of everything associated with advertising and marketing costs. They select the appropriate marketing strategy for a particular video.

Also Read: What Are The Benefits Of Hiring A Photography Studio?

Stock Footage Selling

Video production companies often sell their stock footage to make money. You may not be aware of the concept of stock footage. Video stock is a predetermined recorded clip that can be used to sell later several times.

These clips can be used in multiple films or projects. Many creative video production businesses will have a video stock in their account. Hence, they have a bulk of innovative ideas. It gives them an advantage to stay one step ahead of the competition. Such videos can be sold to individuals or reputable businesses.

Renting Equipment

Video production companies have the skills and abilities to record videos and films. Besides that, they also possess professional tools and equipment that help produce videos.

They can rent these pieces of equipment to people or businesses to earn money. It is among the easiest ways to generate a profit for them while not offering actual services.

A video production company should possess modern and good-quality equipment. It is undoubtedly a quick and smart way to earn money, but renting equipment is not too easy. Renting equipment is subject to certain rules and conditions.  

Different Types Of Videos And Their Cost

The type of video production is another factor contributing to the overall cost of hiring a production company. Here is a list of the different kinds of video production, along with their average cost:

Corporate Video Cost

Corporate videos are videos that businesses produce for external or internal communication. A great majority of corporate videos are used to promote a brand. These videos are a great marketing strategy for a business, and a well-done corporate video can be a game changer.

A short, simple corporate video (1 to 2 minutes) may cost about $ 1500 to $5000. But, mid-range and high-end videos may cost about $ 5,000 to $12,000 and $20,000 to $60,000, respectively.

Explainer Video Cost

Explainer videos are short and engaging. The main motive of these videos is to simplify a product or service. Businesses create such videos for various reasons- maybe to introduce a product/service or streamline complex concepts.

A low-end explainer video's length may not exceed 60 seconds, and it might cost about $1000 to $3000. A mid-range video would have more advanced animation and motion graphics, costing anywhere between $3,000 to $7,000.

If you are interested in a more complex video lasting 1-2 minutes, the cost might range from $10,000 to $20,000. 

Product Video Cost

Product videos showcase the most decisive features of a product that excite customers. The cost of a low-end, 60-second video can be somewhere between $500 to $1500.

On the other hand, a mid-range video with advanced editing and multiple location filming may cost about $2,000 to $5,000. High-end product videos, lasting for 1-2 minutes, may cost about $5,000 to $15,000.

Conclusion

Businesses prioritize video content more than anything else to set their brand apart from the competition. We hope that this pricing guide will prove to be insightful for your next project.

If you are looking to hire a video production company to boost your brand's reputation, count on GXYZ Radio. At GXYZ, all you can expect is affordable services and a quality final product.

We will also provide you with a detailed cost estimation before the services. Thus, you will know what you are paying for. Also, our experts use high-tech tools and the latest software to ensure you can fall in love with the final result. To connect with our team, Click Here.