The Blog

The Secret Ways Video Companies Make You to Pay More Than You Need To

How video companies charge more than they need to

Getting an animated video made should be an exciting step, but there’s one part of the process that often causes headaches: pricing.

If you’ve ever tried to budget for a animated video production, you may have noticed that video companies typically fall into two camps when it comes to pricing. Some hide their prices behind sales calls and bespoke quotes, while others publish fixed packages for all to see.

Let’s explore these two approaches, and the sneaky ways a few companies nudge you into paying more than you need to.

Custom Quotes: The Hidden Cost of “Contact Us for Pricing”

Many video production agencies don’t list any prices on their website at all. Instead, you’re invited to “get a quote” by filling out a form or scheduling a call. Only after a friendly chat (or three) will they reveal the number. On the surface, this no-prices-listed approach has its merits. The idea is that your quote will be tailored to your exact project needs (duration, style, complexity) so the price feels bespoke. If you’re creating a unique user onboarding video or a complex product demo, a custom quote in theory reflects the actual time and effort involved.

Pros of custom quotes:

You get a proposal that’s built around you. It can account for niche requirements (say you need five language versions, or a specific design style). In an ideal world, the quote you receive is the fairest price for your video, not a one-size-fits-all sticker price.

Cons of custom quotes:

It can also feel like you’re playing a game of poker without knowing the stakes. With no public pricing, you have no benchmark to compare against. You might wonder if the price was plucked from thin air based on how deep they think your pockets are. In fact, some quote forms explicitly ask, “What is your budget for this project?”. Handing over your budget upfront can feel a bit like showing your cards. If you say you’ve got £10k, will the quote miraculously come in at £9,995? There’s a lingering worry that the price will stretch to whatever number you volunteer.

It’s also common that once you do get a bespoke quote, it arrives not as a single figure but as a tiered menu of options. You’ll be presented with, for example, a “Basic” option, a “Professional” option, and an “Ultimate” option, with gentle (or not-so-gentle) encouragement toward the pricier middle or top tier. It’s a common sales tactic know as the “good, better, best” routine. The entry-level option is often stripped down just enough to make you doubt it will achieve “the best results,” steering you to spend a bit more.

These tactics are great for companies. They can maximise their price per video and increase their revenue. There are numerous sales resources that teach this exact strategy. It can be quite annoying for you though, as a potential customer.

Consider the experience on some explainer video websites: one leading agency’s site has a big “See Pricing” button that, when clicked, doesn’t actually show any prices at all, it pops up a form asking for your contact details so their sales team can get in touch.

Another UK video company’s site invites you to “Complete this simple form and we’ll send you a competitive quote”, turning the act of getting a price into a mini questionnaire.

In both cases, you’re entering a sales funnel rather than simply seeing a price. It’s a bit of a faff, frankly. It makes it hard to quickly compare vendors because each one requires a call or email chain just to tell you how much they charge. You could potentially spend several days just to get a handful of figures. Not a great use of time.

Fixed Prices Upfront: Does What It Says on the Tin

In contrast, some video companies take a more transparent route: they publish fixed prices or package rates on their website. Everything’s out in the open. You know exactly what you’ll pay for a 30-second animation or a 2-minute premium explainer, without needing to speak to a salesperson. For example, a company might list “60-second animated explainer video: £5,000 flat” and outline what’s included (script, voiceover, revisions, etc). MoovieMakers (along with a small handful of others) follows this upfront pricing model, preferring to show rates openly rather than play the back-and-forth game.

Pros of fixed pricing:

It’s transparent and predictable. No surprises, no suspense. You can budget with confidence because the price is the same for everyone. This level of honesty can be refreshing – it tells you the company has nothing to hide. In fact, pricing transparency isn’t just good manners; it actively builds trust. Surveys indicate 70% of consumers are more likely to purchase from a company with clear, straightforward pricing. In a business relationship, that trust goes a long way. You know you’re getting the same deal as the next client, rather than wondering if you’ve been arbitrarily upcharged.

Just like Ronseal, it does exactly what it says on the tin – the price on the site is what you pay.

Cons of fixed pricing:

The downside is that a published price could feel a bit one-size-fits-all. If your project is very niche or simpler than most, you might think, “Hm, am I paying for more than I need?” On the flip side, if you need something extra, a fixed package might not cover it without add-ons. Some buyers worry that fixed prices mean less flexibility – that you’ll have to shoehorn your needs into a predefined box. However, reputable fixed-price studios usually clarify what’s included and offer add-on menus for unusual requests.

Still, there’s that perception that a flat rate might be either too high for a simple job or too low (yes, it happens) to do a very complex concept justice. It’s worth noting that for the average explainer video project, fixed packages are often designed from experience to suit typical needs. Unless you’re asking for a feature-film level production, upfront pricing tends to cover the essentials.

From a buyer’s perspective, many clients actually prefer having prices up front. It saves time and avoids the awkward “If you have to ask, you can’t afford it” vibe. It also aligns with how marketing people often operate: metrics, KPIs and clear projections. If you’re planning a video marketing campaign with multiple videos, you probably have a target ROI and a strict budget. Knowing in advance that, say, each demo video will cost £X, helps you calculate that ROI more confidently than a nebulous quote that might change.

As one marketing blog noted, brands perceived as transparent see significantly higher retention and loyalty from customers, and by the same token, being a customer of a transparent vendor just feels better.

Pricing Tactics and Upsells: How Companies Nudge You up the Ladder

Whether a company uses custom quotes or fixed packages, there are some crafty pricing tactics you should be aware of. Unfortunately, a few video vendors try to upsell and maximise what you’ll spend, sometimes pushing you beyond what you actually need. Here are some common ways companies get clients to pay more (and how to spot them):

  1. Price Anchoring with Tiered Packages: This is the classic “decoy” strategy from Marketing 101. You’ll be given three packages – think Bronze, Silver, Gold (or renamed to something like Standard, Pro, Premium). The highest tier will be eye-wateringly expensive and loaded with features, often things you didn’t ask for. Its real purpose is to make the middle option look reasonable by comparison. Psychologically, your frame of reference is anchored to the first number you see. For example, a jeweller might show you a £15,000 ring so that a £5,000 one suddenly seems a bargain. In video production, an agency might quote a “Platinum Package” at £20k (including five videos, custom 3D animation, a year of support, etc.), knowing most startups won’t bite. But now the “Gold Package” at £10k (with one nicely animated video and some extras) feels almost thrifty. Don’t be fooled – evaluate each tier on its actual merits. If the lower-cost option meets your needs for a single user onboarding video, there’s no shame in sticking with Bronze.
  2. The “Why Not Go Bigger?” Upsell: You ask for one explainer video and suddenly you’re hearing how three videos would really amplify your product launch. Or you budgeted for 90 seconds and they’re suggesting 2 minutes “for better storytelling”. This is a softer upsell: it might be genuinely useful advice, or it might be a way to increase the sale. How to tell? Ask yourself if the upsell aligns with your original goals. If you genuinely do have multiple features that need separate videos, it could be worth considering a bundle (with a bulk discount, ideally). But if your software demo video can do the job in 90 seconds, don’t be talked into an unnecessary longer cut. A well-crafted short video often has more impact than a padded long one – and costs less, of course.
  3. Hidden Essential Costs: Be wary of quotes that conveniently exclude something important, only for it to be added later. For instance, a proposal might omit voiceover or script writing fees and frame them as optional add-ons – but realistically, you do need those for a successful explainer. By keeping the initial quote low and then tacking on basics as extras, a vendor can make their prices seem cheaper. Always ask what’s included. A transparent company will spell out that the price “includes script, professional voiceover, music, and X rounds of revisions”. If they don’t mention these, double-check. You don’t want a surprise £500 charge for voiceover after you’ve committed.
  4. Scarcity & Urgency Plays: Some companies employ a bit of psychological FOMO to push you to commit. For example, one well-known explainer studio’s pricing page declares “7 spots left this month” and that they limit production to 20 videos per month to ensure quality. While capacity is certainly a real concern for studios, messages like this can create a false sense of urgency. It’s the old “act now or miss out” tactic. Don’t let a “limited spots” banner rush you into signing a deal before you’re ready. Take your time to assess the offer – in all likelihood, if you call their bluff and come back next week, they’ll still happily take your business.
  5. Budget Probing: We touched on this earlier – the quote forms that ask for your budget. This isn’t nefarious per se; agencies ask it to gauge what level of service to propose. But it does give them an upper hand in negotiation. If you’re not comfortable disclosing a number, you can respond by focusing on outputs: e.g. “We’re looking for a 2-minute animated product tour video with graphics in line with our brand. What would that cost?” Pinning them down to specifics can prevent the scenario of “Name your price, and funny enough, that’s our price too.” Remember that a huge range of prices exist in this industry – one 2018 study found that quotes for a 60-second explainer ranged from as low as $700 to as high as $72,000, with an average around $8k. That’s a ridiculous 100x difference between the lowest and highest bids! So if an initial quote comes back far beyond what others have quoted or what you expected, don’t be afraid to get a second opinion. You might find another provider who can do it for a fraction of the cost, without cutting quality.

In short, keep your wits about you during pricing discussions. Most video agencies are honest and want the best outcome for you, but a few will certainly try it on. By knowing these upsell tactics, you can recognize when you’re being led up a pricing ladder you didn’t intend to climb. It’s perfectly okay to push back, ask for a simpler option, or shop around.

Why Transparent Pricing Matters for Marketing Teams

If you’re a business owner or marketing manager, you’re probably used to dealing in data, value propositions, and clear ROI calculations. When bringing in an external partner, like a video production company, you want that same clarity. Here’s why transparent pricing isn’t just a “nice to have” but actually crucial:

  1. Budget Reliability: Companies often operate with strict marketing and product budgets. Knowing the cost of your explainer or demo video upfront means you can allocate funds confidently. No CFO likes surprises. Transparent pricing ensures you won’t have to go back cap-in-hand asking for more money because the video ended up costing double due to add-ons or scope creep.
  2. Faster Procurement: Let’s be honest – getting approval for a vendor is much easier when you have a fixed quote or published price list to show. It streamlines procurement when everyone from finance to the CEO can see exactly what it will cost. Time spent haggling or clarifying quotes is time not spent improving your product or onboarding users. Fixed fees cut the faff and let you get on with the project.
  3. Trust and Partnership: Choosing a video vendor is not just a transaction; ideally, it’s the start of an ongoing partnership (especially if you’ll produce multiple videos over time). Starting that relationship with open pricing sets a tone of honesty. It’s one less thing to worry about. You can focus on creative collaboration rather than wondering if you’re being overcharged. Given that brands who embrace price transparency enjoy higher loyalty, it follows that being the client of a transparent service provider is likely to leave you more satisfied and loyal too. You feel respected when a company lays out their pricing clearly – it signals confidence in their value.
  4. ROI and Effectiveness: The whole point of investing in a video marketing asset – be it an explainer for your homepage or an onboarding series for new users – is to drive results like higher conversions or lower churn. If you pay twice as much as necessary for the production, your return on investment suffers. For example, if an animated onboarding video helps reduce customer churn (which it very often does), that’s fantastic. But if you overpaid for the video because of opaque pricing, the payback period lengthens. By contrast, a reasonably priced video (from a transparent pricing vendor) starts delivering positive ROI faster. You get the same business benefits without a bloated upfront cost. Ultimately, a fairly priced video is a smarter investment. It’s worth noting that an effective video doesn’t have to break the bank – clarity in pricing usually comes with a grounding in real production costs, so you’re more likely to get good value.

To put it simply, transparent pricing lets you as a marketing leader stay in control. You can make an informed decision, manage expectations internally, and avoid feeling like you’ve been had. In an industry (tech) that prides itself on disruption and clarity, shouldn’t your vendors practice what they preach too?

Get a Great Video Without Overpaying

Video content is a powerful tool for growth – from explaining your product in a nutshell, to onboarding users in a scalable way, to reducing support queries. The process of creating those videos shouldn’t feel like a minefield of mystery quotes and upsells. Whether you opt for a custom quote or a fixed-price provider, insist on clarity. Don’t be afraid to ask direct questions about costs, deliverables, and what’s really necessary for your goals. A good agency will welcome an informed client and give you straight answers.

At the end of the day, the best outcome is a high-quality video that delivers results without emptying your wallet. If a company tries to pull the wool over your eyes with pricing, remember – you have options. There are video producers (like MoovieMakers and others) who believe in charging fairly and transparently. The industry is slowly catching on that educated clients value honesty over flashy sales tactics.

When commissioning your next animated explainer or demo, keep an eye out for those pricing shenanigans and trust your gut. If something feels off – a quote that magically matches your maximum budget, or a “limited offer” pressure – step back and reevaluate. With the knowledge of how some companies get you to pay more than you need to, you’re now in a stronger position to get the creative video content you want at a price that’s fair. In the long run, that’s a win for your business and your peace of mind. After all, a great video is even better when you know you got great value, too.

Send us a message

We respond to every message the same business day.

Name(Required)
Enter your email address so we can reply to your message

More from the blog

What Determines the Cost of an Explainer Video? (A Look Behind the Scenes)

Beyond Tech: 5 B2B Industries Benefiting from Animated Explainer Videos

The Secret Ways Video Companies Make You to Pay More Than You Need To

The True Cost of AI Video

Make your message move.

0800 138 1130

1 Overleigh Rd,
Handbridge,
Chester
CH4 7HL