Budget vs. Rate

The Race to the Bottom

the Good the Bad the Ugly

As I stumbled upon a Clint Eastwood meme, depicting him as the client, coolly asking, “What is your rate?” while staring down a bandito, representing the server provider, who responds with the classic counter, “What is your budget?”—it struck me. This negotiation dance, familiar to many, holds a deeper truth that deserves exploration.

In the realm of the audiovisual (AV) industry, negotiations often feel like a tug-of-war where the middleman, the event organizer, holds the ropes, ready to exploit the service provider’s vulnerabilities. The threat of cheaper, albeit less experienced and equipped alternatives looms, pushing service providers into a corner. But let’s pause and reflect: Isn’t this absurd?

Price, in its essence, isn’t determined by a set formula but rather by market forces—supply, demand, and perceived value. Yet, the pressure to cut costs and pit service providers against each other fuels a race to the bottom. As corners are cut and rates slashed, the standard of service declines, tarnishing the industry’s reputation.

The solution lies not in yielding to the pressure but in standing firm. While the AV industry lacks regulation or unionization, establishing a consensus on industry rates is paramount. Service providers must resist the urge to compromise quality for the sake of securing contracts. Instead, they should focus on adding value, enhancing services, and easing the burden on event organizers.

By positioning themselves as indispensable partners invested in the client’s peace of mind, service providers can shift the narrative. Paying the full rate becomes an investment in quality, reliability, and professionalism—a far cry from the race to the bottom mentality.

Furthermore, investing in young talent through internships benefits both parties. Service providers gain access to fresh perspectives and skills while offering mentorship opportunities. This not only improves the quality of work but also ensures the industry’s vitality in the long run.

Collaboration is key. Larger and smaller video production companies should join forces to elevate industry standards collectively. Take a smaller production company under your wing and throw it a bone every now and then. This collaborative effort will not only fosters financial success but also shields the industry from the chaos of market forces.

In conclusion, let’s reimagine negotiations in the AV industry. Let’s prioritize quality over cost, collaboration over competition, and mentorship over exploitation. By doing so, we not only elevate our craft but also secure a brighter future for all involved.