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In this video, Mitchell Losey discusses the importance of contracts for new photography and video businesses. He highlights the scenario where a client inquiry leads to confusion about pricing and services. Often, neither party discusses payment before the project's completion, creating an awkward situation when it's time to request compensation. Losey emphasizes the need to establish clear communication regarding pricing and service expectations upfront to avoid discomfort later on. He advocates for using contracts to protect both the service provider and the client and ensure that all terms are understood from the beginning.