Parc Entertainment - A Video Production Company - Birmingham, AL

Video is an artistic medium, meaning that the final product is always influenced by a certain interpretation and aesthetic approach. Give four directors the same subject and tell them to create a promotional video on that subject, and invariably you will receive four very different videos.

This means that a budget for any one video can run from one extreme to the other. The final cost always depends on several factors. That’s why it’s very difficult to nail down an accurate bid, simply based on the question, “How much do you charge for a commercial?” Video production is something different from an item you find on the grocery store shelf. Every commercial or promotional video can’t always be packaged and priced with a nice, neat little label. Businesses are different. People are different. Therefore, directors that strive to give clients unique content that speaks directly to their audience will want to sit down with you for a creative consultation.

I always try to meet with a potential client face to face to gather information for a particular video project. In that initial consultation, I like to find out the following:

• Basic information on the company; history, products, services
• Main selling points that make this company different from their competitors
• Values the company holds
• Perceptions about the company (both internally and externally)
• Marketing goals that the company has for themselves (more specifically, what do they want this video to achieve?)
• Information on current customers (why do they buy from this company?)
• Their target market
• Problems that this marketing effort will help solve
• The reasons why they contacted me
• The role they want me to play in this project
• Ideas they have for a video (both in terms of content and aesthetics)

These items are incredibly important to me as I move into any video production, because it helps in developing a concept and a script that will be most effective to the client. I want the client to know that what interests me most is helping them gain greater public exposure and increased profitability.

I talk with many prospective clients who express interest in producing a video for their business. When all the discussions are over it’s time to sit down, fill out my budget, and submit the proposal to my contact. The cost of a video production is affected by several factors and so the budgeting process must be thought out very carefully. Otherwise, it can be easy to overlook certain items.

I have created a spreadsheet that itemizes just about everything that one could possibly have on a shoot. Those items are divided into categories for easy reference (Creative Fees, Crew, Per Diems, Travel, Editing Fees, etc.) One column lists my estimated costs and another column lists my actual costs. That way, at the end of the shoot I can compare both columns to see how accurate my original estimate was.

The main thing to do when budgeting a video shoot is to prioritize. In part one of this two-part series, I want to cover what I believe are your top priorities when creating a budget. In part two, I will go over those items in the bid that can easily be overlooked. Here are my suggestions:

Estimate Your Time

Start with yourself. Think about the amount of time that you will spend on this video project. Obviously you want to include the amount of time in production , but you never want to neglect the time you invest in the pre-production and post-production stages. Pre-Production includes conceptualization and scripting, scheduling the shoot, meeting with the client, scouting, meeting with the talent, and meeting with your crew. You’ll spend more time in pre-production than you might think, so budget accordingly. Post-production not only includes the time to edit, but it also includes your time to record the voice-over, meet with the client to go over the edit and make necessary changes. I always like to pad my post-production budget to account for revisions the client might ask for.

Estimate For Your Crew

After you ensure that your time is reflected in the budget, you want to allocate monies for your crew. Surround yourself with quality people and the entire project will turn out much better. Think about how many people you will need and how many days you will need them.

• If you aren’t as confident in your skills behind the camera, consider hiring a DP to handle the technical aspects of lighting, framing, etc.
• If you aren’t as confident in your abilities to manage the project and handle all the logistics of a production, consider hiring a producer.
• If you have on-camera talent, you might consider hiring a hair/make-up artist.

Aside from actual shooting days, will you need the crew to come in early for a tech scout? If so, make sure they are paid for their time. And don’t forget your post-production crew.

• Will you need an assistant editor to help you with the final cut?
• How about an audio engineer/mixer to record the voice-over?
• Will you need to hire a graphic designer to create a custom disc label and DVD warp-around?
• Will you need to hire a composer to write a custom music track?

Estimate Your Equipment

This is where you need to factor in the costs of any equipment rentals your shoot may require. Budgeting for a dolly or a camera jib will really increase the overall production quality of your video. In this category you also want to factor in the cost of your media:

• tape stock or solid state media cards
• hard drives
• blank DVDs (for when you need to send your client copies of the video for review)

Check back in on Monday, August 10 for part two on how to create a video production budget.

The office phone rings. You pick it up and on the other end is someone interested in hiring you for their services. You grab a nearby notebook and pen and start jotting down notes as he/sh discuss what their company needs. As the conversation continues, you start to realize that this will be a very exciting and very profitable project. It’s a great moment for a small business owner or freelancer, but sometimes even quality leads can fizzle. It’s the nature of the business. Projects get put on hold for various reasons - no money, new CEO, a new board rotates on, the committee can’t agree on details, your contact gets distracted, etc. Once I was very close to signing a contract with a potential client, but the project was shelved when the company started dealing with some major internal issues. Some leads are extremely courteous and will let you know what’s going on. Others simply drop off the face of the earth. What can you do as a small business owner or freelancer when projects get put on hold?

1. It’s Out of Your Control - The first and most important thing to remember is that you can’t force your contact to sign the contract and send in a deposit. It can be horribly disappointing when you are on the verge of landing a big job, but sometimes you simply have to shrug your shoulders and move on. It’s out of your hands.
2. Don’t Put All Your Eggs In One Basket - Just because that golden carrot is dangling out there in front of you, don’t neglect your other marketing efforts. Do all that you can to develop new business. Don’t count on that one project to sustain you, because it might not be there when you need it the most.
3. Fix a Limit on Your Bids - When submitting a budget to a potential client, I always insert a note that says something to the effect of, “Bid valid for up to ninety days beyond the submission date.” Over time, both the market and your rates will change. The budget you submit should reflect current conditions so that you can earn what is fair. This clause protects you if a project is shelved for many months or even years.
4. Keep Your Name at the Forefront - If you’re contact is MIA, don’t be afraid to keep your name in front of them, but this must be done in a very subtle manner. You never want to appear desperate for the job. The best way to do this is to sign your contact up for your free monthly newsletter. It lets your contact know that you’re still out there by keeping your name in front of them.
5. Check In Via Email - Don’t do this often, because (as stated in #3 above) it makes you look desperate. Usually if the contact needs your services, he/she will let you know. However, it’s okay to check in via email every few months, just to check on the status of the project. If there’s no news after three follow-ups, I wouldn’t contact the company any more regarding that particular job. I would, however, write to them if you have a new demo reel or portfolio available, or if you have some announcement related to your business.

Projects are often shelved because marketing and advertising is the first thing on the choppping block for many businesses. Try not to let it discourage you. You never know when that job might re-surface.

Money, money, money. This is the one thing that most potential clients are concerned about when deciding whether or not to push forward with a marketing campaign. If you work in video production, web design, graphic design… well, just about any creative field, it can be frustrating when clients want more for less money. Somewhere along the way the true value of what we provide hasn’t been communicated. Maybe the fault lies not with the client, but with ourselves.

Let me explain. In a post last year I discussed the importance of knowing what you’re worth. As a freelancer and small business owner you need to be confident in the quality of your work and the value of your time. Your rates should reflect this view. However, during leaner times we sometimes find ourselves desperate to land the next job. And what do we do? We “low-ball” our bids in an effort to beat out our competitors. Over time, this approach has two effects.

• The marketplace is cheapened.
• The bar is lowered for everyone, creating a new price standard by which all other creative services are gauged.

Before you bid on a job, you have to decide what your ultimate goal is. If you simply want the job, so you can get something on your reel or in your portfolio, then you will probably try to undercut the competition. Keep in mind that if you cut your rates just to land the job, the client will expect more of the same from you down the road. They will continue to up the work load while trying to talk you down on price.

The alternative strategy is to let the quality of your work speak for itself. Communicate the value of what you will deliver. Tell your client that you want to provide them with the most competitive product, not a quick fix. Reinforce the idea that compromises both financial and creatively will ultimately compromise the end product. And if the client continues to balk at your bid, don’t be afraid to walk away. If the client’s entire focus is on money, then the relationship might not be a good fit for you.

I was recently approached by a potential client with a question, “I’m interested in putting together a 6-8 part educational DVD series. How much will that cost?” On another occassion I received a call from an individual who simply asked, “I want to do a video. How much will that cost?”

If your company puts you in charge of working with a production company to produce a marketing/promotional video, it’s important to understand the budgeting process. There are several factors involved in bidding a job, and there are some questions that you need to ask yourself before picking up the phone to call a video production company. The more specific you are, the more accurate the bid will be. Let’s use the example of the 6-8 part educational DVD series to understand some of the factors involved in bidding a video. Here are some variables that need to be addressed:

• How long will each of these videos be?
• What’s the desired format? Do you need single/multiple camera coverage of a live lecture? Do you need a single/multiple camera coverage of a round-table discussion? Will you require any dramatic re-enactments? on-camera interviews? fictional narratives to illustrate a point?
• Will you need HD or SD?
• Will you need the production company to conceptualize and script the series, or will you provide the materials?
• Will the series require a professional voice-over talent, or will the educator drive the series?
• Will you want to shoot on location? Where? A classroom? Auditorium? Will the location be interior or exterior?
• Will the videos require any motion animation or heavy graphics? If so, how much?
• Will the DVDs need to be replicated and packaged with graphic art? If so, will you need one color, two colors, four colors?

The answer to each of these questions will affect the budget of the entire production. They dictate how much crew will be needed on set, how much and what type of gear will be needed, whether actors need to be hired, whether sets need to be built, whether location fees need to be paid, etc.

I understand that sometimes you might not know the answers to these questions, but don’t panic. Talk to potential production companies and allow them to help you narrow your focus. Then you can be assured that you will receive a more accurate bid.