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How much should I charge for a custom video?

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I'm starting a small business where I take people's video from either a child birth, or vacation, etc. and make a custom video for their memories with music, pictures, etc. Kind of like a modern home movie. But I don't know how much to charge for it. Maybe a flat rate, or perhaps by the hour? If anybody has ever bought a video like this, how much did you pay for it? Any financial advice would be helpful. Thanks in advance. =)