What I charge for mixing

Summary

This video script details a mixing engineer's journey over a decade, from charging $175 per mix to over $800, and the shift from time-based to project-based pricing. It explores the importance of setting the right price, managing client expectations, and the impact of efficient communication and CRM systems on business growth. The speaker shares insights on how to balance supply and demand, the value of setting clear project goals, and the benefits of result-based pricing over time-based pricing.

Takeaways

• 💡 The speaker started with a mixing rate of $175 per mix in 2014 and increased to over $800 by 2024.
• 📈 Over the past 10 years, the speaker's business has grown significantly, going from 2 mixes in 2014 to over 100 projects a year.
• 🔍 The speaker initially made a mistake by reverse engineering his projected revenue based on a 100% fill rate, which is unrealistic for a new business.
• 📉 The speaker learned that time-bound rates were not sustainable due to the variability in the time it took to complete projects.
• 🚀 Transitioning to project-based rates allowed the speaker to focus on delivering results rather than just spending time on tasks.
• 💼 The speaker found that using a CRM was crucial for managing leads and opportunities but eventually moved away from traditional CRMs to a system better suited for his needs.
• 💬 Emphasizing the importance of client communication, the speaker learned that understanding client expectations and needs was key to project success.
• 📊 The speaker realized that raising rates led to clients who were more engaged and committed to the project's success.
• 🔗 The speaker experienced a significant increase in demand for his services, leading to the need to hire assistants to help manage the workload.
• 🔄 The speaker is considering purchasing various DAWs to streamline the process of handling client projects with different file types and setups.

Q & A

How much did the speaker charge for a mix in the first year of their studio?

In the first year, the speaker charged $175 for a mix.

What was the speaker's initial pricing strategy and what was the flaw in it?

The initial pricing strategy was to charge for half days, with the flawed logic being that the speaker reverse-engineered their projected revenue based on a 100% fill rate, which is unrealistic for a new studio.

How many mixes did the speaker complete in their first year?

In the first year, the speaker completed two mixes.

What was a significant realization the speaker had regarding their missed opportunities in 2017?

In 2017, the speaker realized they missed out on $114,000 of potential work due to not following up on inquiries and losing communication with potential clients.

What was the speaker's approach to pricing from 2018 to 2020?

From 2018 to 2020, the speaker focused on project rates, which meant they charged based on the result rather than by the hour or by the day.

How did the speaker's completion of projects increase from 2018 to 2020?

The speaker completed 50 projects in 2018, 61 projects in 2019, and 92 projects in 2020.

What was a key takeaway the speaker learned about client communication?

The speaker learned the importance of engaging in conversations with clients to understand their needs and expectations, which led to more successful projects.

Why did the speaker decide to hire assistants in 2023?

The speaker decided to hire assistants in 2023 to handle the onboarding process of projects, allowing them to focus on mixing without getting overwhelmed by the increasing number of projects.

What was the speaker's rate for mixing in 2023?

In 2023, the speaker's rate for mixing was $700 per mix.

What is the speaker's current nominal rate for mixing?

As of the time of the script, the speaker's nominal rate for mixing is $800, but it fluctuates based on the specifics of the project.

What is the speaker's perspective on result-based pricing versus time-based pricing?

The speaker believes that result-based pricing is better than time-based pricing because it allows for setting clear goals and expectations with the client, whereas time-based pricing can lead to stress about time constraints and inefficiencies.