How much should I charge for my Virtual Tours? That is a question many people ask themselves and there are no right or wrong answers. The answer will depend on what your competition charge, how much time it takes to create a Virtual Tour, and the value it brings to your client. In this blog post, we will discuss how you can come up with an estimate to determine a price for your Virtual Tours.
As a Virtual Tour provider, I have been asked to give my opinion on pricing several times. It is not an easy question but it’s one that you can answer by following these simple steps:
Find out what your competition charges and why?
In order to find out what your competition charges for Virtual Tours, you will first need to know who they are. You can then visit their website or, if you’re daring, call them and pretend to be a client looking for quotes
The next step is looking at their prices and justification for those prices. What makes yours better than theirs? Do they create the entire tour on-location with a professional photographer or shoot the tour themselves? Regardless of the prices, you need to know the market and what your client’s expectations are. There could be many reasons why one provider may charge less than another; research each
Estimate the time needed for each Virtual Tour based on complexity.(i.e., how many rooms are in the house or building) and industry standards (i.e., housing versus commercial property)
In order to estimate the time needed for each Virtual Tour based on complexity, there are three factors that need to be considered: length of the tour, number of locations, and amount of content (e.g., amenities) at those sites. How long it takes you or your team members to shoot an average building will vary depending on what type of building it is and how many floors have been designed with virtual tours in mind; this could take anywhere from one hour up to two months depending on the project. The more complex the site(s), and especially if they’re large buildings, then some additional considerations should be given when estimating project timelines
Understanding the ROI
Each client’s needs are unique so it’s important to be open and honest with them about the investment they’re making. You should also offer a variety of price points (e.g., $500, $1000) that will fit their budget as well as provide some insight into how many Virtual Tours can be completed within their timeframe
The goal is for your client to make back at least double (preferably more) than what they invest in you from increased traffic due to the Virtual Tour(s). So if your Virtual Tour costs them $1500 then ideally after six months of promotion on various channels including SEO, PPC ads on social media networks like Facebook and LinkedIn; referrals from previous clients, etc. They’ll need to make back approximately $3000-$4000 without any additional add spend.
ROI =( Net Return on Investment/Cost of Investment)*100%
Building a Virtual Tour is akin to investing in yourself. You’re putting your life’s work into it and you want the client to know that they can potentially make back more than what they invest in this project. It might sound like an audacious assumption but it’s not unheard of for clients who take my advice on pricing their Virtual Tours correctly to make back at least what they invest in the Virtual Tour.
In addition to the ROI for your client, I’ve found that it is easier to price a Virtual Tour if I first figure out how much money I want to get back from this investment and then determine what my break-even point will be by subtracting the total amount of money invested in the project from that number. Once you have those two numbers, simply divide one by another for your ROI. Once you know your net return (money coming in minus cost) and your ROI %, you can price your tours accordingly.
Virtual tours are becoming a more popular and in-demand service, but what is the best way to price them? We have outlined some considerations that you should take into account when pricing your virtual tour. Your goal should be to make sure that it’s competitive with similar services while still allowing for enough profit margin. If you want help determining an appropriate rate or help scaling your virtual tour business, we would love to talk with you. Just schedule a time that works for you and one of our team members will contact you shortly!