VO-BB - 20 YEARS OLD!

[Neil K. Hess]

How do you calculate bulk rate discounts? In other words, if someone asks if there is a discount available if you do x commercials for them, how much % would you knock off of the price for each commercial? Just want to make sure my figures are around industry average/standard.

Thanks!
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[Jeffrey Kafer]

There is no "standard" unless you're union. And I don't think there is a bulk discount in the union contract.

How much you take off is purely up to you. For me, it depends on many factors, such as how many spots they have, deadline, and of course, the pain in the ass factor.
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Jeff
http://JeffreyKafer.com
Voice-overload Web comic: http://voice-overload.com

[Donna]

This is becoming kind of a pet peeve of mine. How can you do bulk voice overing? We can only say one word at a time. We are a factory with an inventory of precisely one. There is no bulk to discount.
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Donna Postel
donnapostel.com
donna@donnapostel.com

[scottnilsen]

What I have found to be helpful is to give a breakdown of declining rate per script as the number of scripts gets higher. I used to get asked quite often to give a rate like that with the assurance of multiple scripts that never seemed to materialize. So now I say something like this:

For 1-5 scripts: $xxx per script
for 6-9 scripts: $(little less) per script
for 10-whatever scripts: $ little bit less per script

This way it's understood from the beginning that the discounted scripts only come after there are already several on the docket.

YMMV
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[Scolaidhe]

If you buy nails by the 100 there is one price. If you buy nails by the 5,000 there is another price, which is less than the price of 100 multiplied by 50. There is a packaging difference, and selling more in one package is cheaper for the seller.

Does this apply to VO? Perhaps to a small degree.

[Bish]

... but, these multiple scripts must be in the same session. Give me six scripts in one hit and we're good for the discount... giving me three this week and three next week does not make six. I have this deal with a client where the rate agreed is for a minimum of five scripts in one shot... one price for the job... dribble them to me, and the individual rate applies.

The "discount for bulk" is an interesting topic which can be argued either way. If I'm getting five similar 30sec scripts in one hit, it takes me far less time than doing five individual... one set-up, one "mind-set", one recording session, one set of paperwork. It is far less effort on my part than five individual job... now, should I give a discount for this? I choose to... you may not. It's all good, and whatever fits your own model. The discount given may be invaluable from a customer relationship point of view... or not, depending on the client.
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Bish a.k.a. Bish
Smoke me a kipper... I'll be back for breakfast.
I will not feed the trolls... I will not feed the trolls... I will not feed the trolls... I will not feed the trolls.

[melissa eX]

The jury's out for me on this one. On one hand I see the logic of the bulk discount. On the other I have to wonder, why would I want to do more work that pays less, rather than more work that pays well. Or less work that pays more if one is so inclined.

I understand Bish's reasoning that it takes less time to do 5 scripts in one shot than one at a time. It makes sense. But then again, those 5 scripts don't have a diminished value for the client because of how they were recorded. They're getting the full value for each of the 5 scripts. And if they're for different clients of the client, each of those clients is being charged full freight. So why shouldn't we? Are we selling ourselves on a time clock basis or are we selling value?

But union rates - for corporate work NOT commercial - drop after the first session hour. I believe that's because most work is done within just an hour, so this way one doesn't get nickel and dimed because the session took 17min and 47.5 sec. But if you're talking really long form (with the exception of audiobooks) where you've got a multiple hour session, often non-union rates are higher than union rates - even with the H&R contributions and taxes involved.

That said, I do drop rates at certain points for certain types of narration. But not all.

I don't really know what's best.

[Jeffrey Kafer]

[Bish]

I think one of the issues here is the danger of us being a little precious with our attitude towards our product. I am hard-pressed to think of anything (especially in B2B) that will not attract a discount for bulk purchasing. At the low end, we've had the example of the box of nails... and I'm sure I could get a deal if I was buying five Boeing 777s that would be somewhat less than the price of five individual purchases. It is an expectation, and as a buyer it may not be a case of being happy with a discount, but more a case of considering the VO as intransigent if we do not offer one for a multiple purchase.

Of course, it could be argued that the purchaser of the individual item is penalized and the bulk rate is the real one. Minimum session fee anyone?
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Bish a.k.a. Bish
Smoke me a kipper... I'll be back for breakfast.
I will not feed the trolls... I will not feed the trolls... I will not feed the trolls... I will not feed the trolls.

[Lee Gordon]

Regardless of what formula you may arrive at to offer a volume discount, I highly recommend you apply it as the volume milestones are reached, rather than just cutting your rate on the promise of additional business. For example, let's say your fee is $300 per unit and the client says, "I'm going to have you record at least 20 of these. What kind of bulk rate will you give me?" And maybe you decide 10% off would be fair. Rather than knocking $30 off the price of each one from the outset (i.e. charging $270 per spot), you'd do the first ten for the full price, then knock $30 apiece off the next ten. You may even decide to cut a further $10 or $20 off each spot if a higher milestone is reached.

But at some point, the price cutting has to end so the fee never drops below a minimum you're comfortable with. Otherwise you'd reach a stage where you were paying him to do his stuff. By then, you should be on a retainer.
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Lee Gordon, O.A.V.
Voice President of the United States
www.leegordonproductions.com
Twitter: @LeeGordonVoice

[Philip Banks]

Calculate a business discount. How much over the next nmonths is the job going to generate in turnover? Does it provide all you need to run your business and earn you a living? Will your business lose other work as a result? Will you kill yourself trying to deliver and let's not overlook Mr Kafer's pain in the bottom factor.

Never offer a discount in return for possible volume. Your discount is a certainty so the volume must be a certainty too! That's fair for both. In effect I am saying that I only do deals when there is SO much involved not when there is so little.

Faffcon topic - "What's the difference between Philip Banks and a Terrorist? You can negotiate with a Terrorist"

[Rick Riley]

When I invoice, I have a category, 'Multiple Project Discount'. It comes up as 15%, but I can change it to 20% at my discretion. The point is, they get it at billing, not at the promise of 'more work to come'.

If they give me multiple projects that I can do all in one session, however long that session may be, that's where the convenience on my end comes in and the discount on their end arrives.

On occasion I am asked for a 'package price', which is fine, but they need to get the 'package' to me, in order to get the price. The latest example is a TV 30 that is running on FOX. I was glad to get the spot. Just prior to the session, they threw in another 30 at the same rate. I was gladder. And they asked for an alt line so they could make the first spot more timely and they sub out the alt line for later. I gave them a discounted rate since it was just an alt version of the first spot and would not be able to run concurrently. After the spots were done, they came back the next day and wanted a 'package price' on 14 more spots. I went with 20% on the discount.

The benefit to me? No auditions for the next 14 spots, and a great client with a nice guaranteed work load. FYI, this was all last week, and I have yet to hear back on the acceptance of my offer.

I guess the point is, you have to do a lot of thinking on your feet when it comes to pricing. But if the job is of the magnitude where it benefits you above the normal scope of your work, then IMO, it should benefit them as well. But make sure you get that benefit first.
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[DougVox]

[Philip Banks]

Yes I am selling my time on a clock basis and per hour my time sells, like everyone in the US, for around $8; everything else costs extra.

More often than not people looking for a VO are looking at A VOICE at A PRICE, nothing else really matters to them. If you understand that HUGE part of the market and bring something to the party to which only the big kids are invited you may walk away from the Beggars Banquet and sup with the Kings and Queens.

On average I do beer(curry) money jobs a couple of times per week, I get them because I answered the phone and the person wanting knew that I'd do ok. Had I not answered the phone he would simply call someone else until he got his "fax n dial" job done.

This week $320 of my billing ( 1 job) was a .."Oh you'll do" job ... The rest were rooted in, see Doug's informed post above.

[sirmelja]

DougVox wrote: