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Thread: how much do you charge a client for a 360 virtual tour?

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Jat Hayer

Posts: 7
Location:
Registered: 10 Jan 2010
how much do you charge a client for a 360 virtual tour?
Posted: 10 Jan 2010 at 19:30 GMT
is there a pricing system/price range you work to?
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Guest
Re: how much do you charge a client for a 360 virtual tour?
Posted: 10 Jan 2010 at 20:05 GMT
updated: 14 Mar 2011 at 16:13 GMT
The worse the hardware/software, the lower the price you can expect for your work.

But it is also a geographical issue.

When you can provide quality works, you can ask for good prices.

There are many factors involved, but with crappy things like ipix and similar small display systems, or one shot mirror systems, you can consider yourself very fortunate if you get any jobs that can pay for your survival.
johnclaim

Posts: 1
Location:
Registered: 14 Jan 2010
Re: how much do you charge a client for a 360 virtual tour?
Posted: 18 Jan 2010 at 4:30 GMT
Reasonable charges i will give.

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John Claim
www.bestofcolleges.com
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Doug Aurand

Posts: 3282
Location: Albuquerque, NM, United States
Registered: 2 Jan 2008
Re: how much do you charge a client for a 360 virtual tour?
Posted: 18 Jan 2010 at 6:21 GMT
Jat
If you're in the USA and tell me what type of business the tour is for, I might be able to give you a ballpark price.

Doug Aurand
Albuquerque, NM
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swoolley

Posts: 16
Location: Canberra, Australia
Registered: 1 Apr 2008
Re: how much do you charge a client for a 360 virtual tour?
Posted: 3 Feb 2010 at 4:43 GMT
I guess this really depends on what you are provide and how much your time is worth. I'm starting a pano photography business soon. I would be interested in what someone roughly charges for say a 5 shot virtual tour of a hotel.

Simon Woolley
www.ixl360.com.au
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iam360Texas

Posts: 326
Location: Fort Worth, Texas, United States
Registered: 12 Jul 2006
Re: how much do you charge a client for a 360 virtual tour?
Posted: 3 Feb 2010 at 17:43 GMT
updated: 3 Feb 2010 at 17:47 GMT
I suspect you might want to examine the clients use and the affect it will have on his bottom line.

Example: Realtor/Architect firm is selling up scale condo's. Before the firm just use flat still images on brochures, website and newspaper. This attracted alot of people. People arrived to tour the home. Later they decided it was not a buy.

Possible cause and effect:
360 virtual tours were added to the firms website. Over the next 6 months... 25% fewer people arrived for home tours. AND home sales increased by 35%. Of those people buying the new condo's stated that seeing the pano's first helped them decide which condo layout they liked best before deciding do a walk through before signing the condo sales papers.

So where in the process is the client saving money [read not spending money which could be used for more panoramas] as a result in using the virtual tours. The sales person not scheduling as many tours [non productive time] now can spend more time processing sales papers.
[this is a real situation in a major city in Canada I heard about 2 weeks ago]

Another example.
Hotel 100 rooms. 70% annual occupancy rate. Average nightly room rate $50.

Full capacity 100 rooms (100%) x $50 = $5,000/ night
Actual occuapancy 70 rooms (70%) x $50 = $3,500/ night

Lost revenue $5,000 - 3,500 = $1,500 lost revenue

Offer to increase the actual occupancy rate by 10%

High Quality Panorama set 10 x $200 ea = $2,000
Panorama have useful life of about 5 years or until property is renovated.

Lost revenue $1,5000 x 365 = $547,500.

Revised occupancy 80 rooms (80%) x $50 = $4,000/ night
Actual occuapancy 70 rooms (70%) x $50 = $3,500/ night

Increased revenue $500/ night x 365 days per year = $182,500
Year 1 182,500 - $2,000 panoramas = $180,500
Year 2 thru 5 = 4 years $182,500 x 4 = $730,000
5 year Total $910,508 or slightly under $1 million dollars

Now the Hotel manager will realize an increase in their annual revenue. Yes?

I think you have the idea now?

Maybe $2,000 for 10 panoramas isn't enough.
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Doug Aurand

Posts: 3282
Location: Albuquerque, NM, United States
Registered: 2 Jan 2008
Re: how much do you charge a client for a 360 virtual tour?
Posted: 3 Feb 2010 at 18:07 GMT
iam360Texas
The highest price I've seen advertised for a 10 scene hotel virtual tour was $3500 which included travel expenses in the 48 contiguous state.

At the time I was doing some traveling could go round-trip to just about anywhere in the lower 48 for $500 so I looked at PhotoWebUSA's price as $3000 for 10 scenes.

I think they took the price off their website because they've had more competition and have had to negociate prices for multiple property contracts.

$2000 for a 10 scene hotel tour with travel expenses and a meal per diem paid by the hotel is pretty good these days

Later
Doug Aurand
Albuquerque, NM
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John Willetts

Posts: 259
Location: Bath, United Kingdom
Registered: 13 Mar 2008
Re: how much do you charge a client for a 360 virtual tour?
Posted: 3 Feb 2010 at 18:10 GMT
There are no rules.

Go on a Small Business Course and learn what your time is worth and how to cost.

Be Professional!

John
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Doug Aurand

Posts: 3282
Location: Albuquerque, NM, United States
Registered: 2 Jan 2008
Re: how much do you charge a client for a 360 virtual tour?
Posted: 3 Feb 2010 at 18:27 GMT
There's also what "The Market will bear"

A couple of the hotels I shot for another virtual tour company last year mentioned they looked into a virtual tour a year or so ago.

They got quotes of US$5000 to $6000

Needless to say, neither of the hotels had those companies/individuals shoot tours for them.

The thing to do is see that potential competitors are regularly selling hotel tours for and decide if you can afford to sell at the same or a little lower price.

A couple of the bigger hotel virtual tour companies have operations in Austraila, ICEPortal.com and PhotoWedUSA, find out what they charge

Doug Aurand
Albuquerque, NM
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Re: how much do you charge a client for a 360 virtual tour?
Posted: 3 Feb 2010 at 21:35 GMT
updated: 14 Mar 2011 at 16:13 GMT
Quality costs.

A bottle of brand name bottled water is cheaper than a bottle of Dom PĂ©rignon champagne.

When a 5 star hotel wanted 44 scenes for an absolute max price of $30 pr. scene, I simply thanked them for their time and left the meeting. I lost nothing, they lost an investment opportunity. If I had gone down to the price they so desperately wanted (while charging $1000 per night for their super suite) I would have undermined my own business. So I'd rather sell nothing, than taking the crumbs from the cheapos.

It is the same as a car dealer having a new Porche priced at $300.000 then getting an offer of $50.000. We all understand why the dealer would not take such an offer, yet there are elements in our community that are willing to do jobs that really do not pay.... and by doing so, they drag the market around them down. That is exactly what iPix did, and the destruction it caused, is still felt today. The only way to get out of that situation, is to offer higher quality panos and convince the businesses who are interested in the tours, that the price label IS a lot higher than the iPix thingies could ever do, and that the added price will increase revenue (check iam360Texas' calculation).

Of course the clients want quality, of course they want it as cheap as possible... that's just their business strategy, and a healthy one. But we as the panorama providers, have to have our own business strategy in tact too; keep the prices in an area where we can survive AND prosper for future operations. Making enough for the food today, but have nothing additionally for the food tomorrow... that's not a good thing.

In relation to that, I am very happy to see that Doug has taken a step away from iPix, and into the area of quality players, and that he is becoming more aware of the increased opportunities with bigger/better quality offerings.

Just wish everyone else at the bad end of the business (the cheapos) were as wise... but eventually they will either go under due to lack of quality, or they will make the change as well.
iam360Texas

Posts: 326
Location: Fort Worth, Texas, United States
Registered: 12 Jul 2006
Re: how much do you charge a client for a 360 virtual tour?
Posted: 4 Feb 2010 at 0:48 GMT
Agree...world marketing does have its challenges.

Thank you Trausti !
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Re: how much do you charge a client for a 360 virtual tour?
Posted: 4 Feb 2010 at 1:48 GMT
updated: 14 Mar 2011 at 16:13 GMT
Actually I am thinking about going back to the hotel in question, offer them to do the whole 44 pano tour for FREE, in case they don't want to pay my prices (which will be higher than last time)... but in return I would have them to sign legally binding papers, in which I am granted 25% of increased online bookings after the tour comes live online... valid for 5 years.

Showing them the prospect of increased bookings during initial meeting, I am sure they will be most happy to simply pay the price I put up, and live happily ever after smile

I know that no business would be willing to risk 25% of potential increased income of these proportions, rather than taking the chance of investing in a tour.... and if they are not interested in paying for the tour either, they are not really a serious business... rather one that exists because of market conditions.
Bob Stone

Posts: 386
Location: Rochester, NY, United States
Registered: 20 Oct 2007
Re: how much do you charge a client for a 360 virtual tour?
Posted: 4 Feb 2010 at 4:15 GMT
updated: 4 Feb 2010 at 4:19 GMT
Trausti,
"Showing them the prospect of increased bookings during initial meeting, I am sure they will be most happy to simply pay the price I put up, and live happily ever after"

I often wondered if a similar approach would work with real estate. Take the photos for free with the stipulation that when the home is sold, your fee to the realtor will be the sale price times .25%.... So an 8 tour 12 traditional photo display may bring $750 at closing for a $300,000 home. No sale no money... Doug?
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Ranjan Pano

Posts: 145
Location:
Registered: 20 Jun 2006
Re: how much do you charge a client for a 360 virtual tour?
Posted: 4 Feb 2010 at 4:49 GMT
I quoted $200 for each pano for 18 sites of a hotel to be shot (total $3600) & combined in one tour.

Client say that its expensive, ok great what's your budget?

They say $50 per tour which is impossible.........but little brain storming & working with numbers I offered them $20 per location/tour (way less than $50)
monthly license fees ($360 monthly)
x12 months ($4320 annually)
they are free to opt out at any month after 3 month period.

Why would they opt out if the tours are getting them additional business that too in times of recession.
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Re: how much do you charge a client for a 360 virtual tour?
Posted: 4 Feb 2010 at 4:59 GMT
updated: 14 Mar 2011 at 16:13 GMT
Yes, that is also a good model, renting panos to the clients, since the client doesn't have to pay much up front, but the money comes in on regular basis, and in the long term, it is much more profitable than a sold package... and also more attractive to those who don't have much loose cash. But how to control the content if they don't pay? Has to be on one's own servers, where it can be disabled in case of no payment.

I offered such a deal to a client, where he could also buy out panos after the initial 6 months (full price), get those and continue to pay rent of the rest... After the first year.

The client loved the idea, even when it was clear that he would be paying almost triple the price of the project if he'd bought it initially.

So these untraditional models are good options to keep in mind, but one has to have legally binding contracts to be on the safe side.

Trausti
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