Last Thursday I posted part one of a two-part series on how to budget for a video production. In today’s article I want to conclude by looking at those items in your budget that are necessities, but can often be overlooked.
Estimate Your Per Diems
Once all of the items from last week’s article are taken care of, it’s time to make sure that you and your crew have something to eat throughout the shoot. Make sure you cover the cost of meals and craft services (i.e. the snacks and drinks you and your crew grab throughout the day). Per diems can range anywhere from $25 per person per day, to $50 per person per day. I have found that $40 per person per day works for me.
Estimate Your Travel
If you do need to book a flight for the job, call the airline and inquire about their excess baggage fees. You need to account for that cost in addition to the cost of your tickets (You can save money by either shipping some gear ahead of time, or by electing a crew member to drive the gear to your destination).
But even if the shoot doesn’t require a flight or hotel stay, you need to estimate how many miles you and your crew will be driving throughout the production. As of this writing, the standard IRS rate for mileage reimbursement is $0.55 per mile. Don’t forget to estimate your mileage for pre-production and post-production. And remember that with driving comes parking fees and possible road tolls.
Estimate for the Unexpected
What happens when a shooting day gets rained out and you have to add on an additional day? Did you account for that in your budget? You need to. I always add a little to the budget to cover contingency days and any other emergencies that might pop up while in production.
Estimate Your Production Fee
The final thing you need to add into your budget is a production fee. This is especially important if you are set up as a business (LLC, Corp., etc.). You’ve paid yourself and your crew. You’ve accounted for your expenses, and so you need to make sure your company has some left over at the end of the day. After all, if you want your business to grow, you will need to turn a profit.
These are my suggestions for how to prioritize your budget. Hopefully it will help you be more organized and, ultimately, more profitable as you grow your video production company.
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