"Event and corporate video production offer a vast opportunity for increased income. The key to profitability, however, lies in understanding the value of what you're offering to the public, and charging accordingly. The successful video companies—as well as photography studios—understand this, but many more barely scrape by because they are afraid to charge what they are worth.
"The practice of under-pricing ourselves contributes to a low perceived value. When we lower our price, it sends a message to our clients that we are not worth what we were charging. We cheapen ourselves, and in today's society, products that are cheap are not held in high regard. There is definitely a place for incentives, specials, and give-aways, however, if a company is undercharging to begin with, these tactics can lead to business suicide.
"With photography, videography, or both, if you charge what you're worth, you'll increase your perceived value, which will improve your image, which will, in turn, bring you more business and respect."