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.

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.

Last night marked the end of production for my latest short film If Only. I think everyone is relieved that we have finally wrapped. This particular project was plagued with delays and some unexpected problems, but I feel confident that we will make a solid film with high production values.

I have made several short films over the years and I have learned a lot about no-budget independent filmmaking. So, for those who also share my passio, allow me to pass on a few lessons that will hopefully help you in your endeavors.

Don’t let the lack of money prohibit you from getting out and making films. If you have something to say, then say it. But also remember that low-budget

1. Low budget doesn’t mean low production value. The fact that you have little or no money doesn’t autmatically mean that your film will look horrible. But you have to study the ins and outs of cinematography. Ask questions. Practice your craft. Learn by watching what others are doing. Solid execution will give the impression that you spent more than you actually did.
2. Surround yourself with knowledgeable people. In 2004 I wanted to produce a short comedy. However, I was just getting back into production full-time and I didn’t know too many local filmmakers. So I decided to take on every behind-the-scenes role myself. I was the writer, director, producer, editor, cinematographer… I did everything, and as a result the quality of the film suffered. When you make it a goal to direct your film, recruit others to work in key positions. For example, having a talented DP on set to light the scene and run the camera will give you much-needed time to rehearse and direct your actors. It’s easy to get caught up in the technical details and neglect the performances from your talent, unless you have others working with you on set.
3. Things will not go as planned. This is true of even the biggest Hollywood blockbuster, but even more so on low-budget short films. Expect the unexpected. A location will not be available when you need it to be available. An actor will have to reschedule at the last minute because of a conflict with his or her day job. You will get rained out. The police will tell you to shut the whole thing down. You will be forced to eliminate certain camera set-ups (or perhaps entire scenes) due to uncontrollable circumstances. That’s just the way it goes.
4. Always have a plan “B.” This point is a direct result of point #3. When things go wrong, you need to have a contingency plan in place. If it rains and you have to be outside, how can you re-work the story to incorporate the rain? When the owner of a location needs to pull the plug on you for some unforeseen reason, what can you do to complete the scene? A good producer will help you think through these potential problems before they even happen, so it’s important to go over these issues in pre-production.
5. Maintain a comfortable pace while in production. When everyone is getting paid thousands (or even millions) of dollars to be involved with a movie, you can afford to work everyone for 16 hours a day, six days a week. However, when you’re on a low-budget short and everyone is working for free, it’s important to remember that they are doing you a tremendous favor by being involved with your film. Pad out the shooting schedule so it isn’t too demanding. At the same time, be up front with those involved and remind them that filmmaking is a time intensive process. You can’t shoot a five-minute film in thirty minutes. Be respectful of their time, and be honest about expectations.

In my experiences as an independent filmmaker living in Birmingham, I have met a lot of gracious, wonderful people who are eager to see the production industry thrive in this region. And I’m certain that in your own film projects, you will be just as fortunate. Be professional, prepared, courteous, and respectful, and people will want to work with you again and again.

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.

As a small business owner or freelancer it can be very tempting to jump on any job opportunity offered up to you. That knee-jerk reaction to say “yes” to any and everything does communicate eagerness, but it can get you into big trouble down the road if you don’t carefully examine the situation before diving in.

In Luke 14:28 Jesus said, “For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?” Regardless of your spiritual beliefs, there’s some wisdom here that’s applicable in your personal and professional life. The moral is, think before you commit. If you make a promise to your client, it’s vital that you deliver on that promise. If you can’t finish what you start, it not only makes you look bad, but it puts your client in a very inconvenient situation.

Sometimes a potential client will come to me with a very attractive project and a very tight schedule. I have to carefully weigh the needs of the client, the scope of the project, and the time frame in which it has to be completed. If I’m confident in my ability to deliver, I move forward on the project. If I don’t feel as though I can deliver all that the client is asking in the time frame allotted, I don’t walk away. Rather, I work with the client to see if we can trim the scope of the project to a more manageable size. I almost never say “no,” because often there are solutions that can be made to the satisfaction of everyone.

To succeed as a business owner or freelancer, you have to deliver a quality product on time and on budget. Before you jump in, evaluate the situation carefully and make sure you always deliver on what you promise.

There’s a fine balance that has to be made between delivering a high-end product and maintaining a budget that your client finds reasonable.

Let’s say you’re getting started in your video production business and you need to keep your production costs low to attract new clients. However, you also want to create content with high production values to give the appearance that your client spent more than they actually did. You always want to go for the “wow” factor. So, how can you create videos with great production value while working with a modest budget?

1. Learn everything you can about proper cinematography techniques. One of the easiest ways to make more aesthetically-pleasing videos is to know the basic concepts of cinematography. Video production is a craft. Don’t think that you can pick up a camera and then point and shoot. You have to learn about composition, framing, camera movements, lighting. You have to learn all you can about the camera itself and its functions. Don’t take this first lesson for granted. This is a necessary pre-production task that won’t cost you anything but time, but it’s the foundation for better looking productions.
2. Capture good audio. Nothing spoils a video faster than bad audio. Make careful considerations regarding your locations. Scout them first. Listen for anything in the vicinity that could cause a problem for your audio track. If you can, hire an experienced audio mixer/boom man for your shoot. Even if the crew consists of just you and the sound guy. Trust me, it will be worth it.
3. Keep the crew to a minimum. Your production budget can really spin out of control once you start adding on grips, audio technicians, editors, etc. When you’re starting out, you will need to function as producer/writer/director/DP/editor in order to keep your costs down. However, you have to concede the fact that while you’re on location you won’t be able to do everything yourself. Start off by hiring one assistant to help you with gear. A fair rate for this individual is anywhere from $200-$350 per day, depending on his/her experience.* (a day rate is based on a 10-hour day. You can pay your assistant a half-day rate if you are on location no more than 5 hours.)
4. Develop a shot list. This is a no-cost pre-production task that will save you time while on location. Each shoot needs to run as efficiently as possible. Time is money. So, always write out a shot list before arriving on location.
5. Rehearse before shooting. The less tape you use, the less money you spend. The less footage you put on your P2 card (or other solid-state media), the less space you take up on your hard drive, meaning less money. So, always rehearse with your talent before shooting. Go over the action and the camera moves. Make sure everyone is clear on what’s to happen when the camera rolls.
6. Take advantage of DIY techniques. High-end productions utilize dollies and cranes to create smooth camera movements. Those movements look very professional on screen and ramp up the production value of any video. But that equipment costs money - a lot of money. But have no fear. There are a number of wonderful do-it-yourself resources on the web for creating the same professional look at minimal cost. Just look at our previous post about creating a dolly move without the use of a dolly. Also look at tutorials from sources like Triune Films and read DIY stuff from FilmmakerIQ. Here’s a quick tutorial on creating your own camera car mount.
7. Invest in stock footage. This will be a rather pricy upfront cost, but the resource will quickly pay for itself. Let’s face it - Shooting at the beaches of Mexico would be too expensive. Grabbing that aerial shot over the Colorado Rockies is probably out of reach. But, if you had a library of stock footage, you could quickly plug in that aerial shot when the subject matter calls for it and by doing so you can instantly increase the production value of your video. A good resource for stock footage is over at Digital Juice.

There are a number of ways to keep your costs down while giving your client a video that “wow’s” them. All it takes is a little imagination and resourcefulness. And as your business gains momentum, you can start investing in bigger crews, better cameras, and additional gear.

Many of my larger projects are built into phases. This is done mainly for two reasons: it helps my client’s budgeting needs and it provides them with peace of mind, knowing that I am making constant progress on the video. If you are working on a project that is built into phases, it’s important to thoroughly describe each phase in the contract and when that phase will be completed. Be up front with your client in regards to payment. I usually request a deposit when the contract is signed and then partial payments upon delivery of each phase. Asking for progress payments will help your cash flow and will help defray production costs and the cost of your time.

When that first phase is delivered, however, it’s important that you and your client are both on the same page before the project moves forward. It would be disastrous to move toward completion of a project when your client hasn’t even approved phase one. That’s why, in addition to the original contract, I always provide my clients with written approval agreements that they must sign before I continue with the project. These don’t have to be complicated. All it needs to say is that the client acknowledges that phase one was delivered on schedule, that they have thoroughly examined all elements, and that those elements meet with their approval. This will give you the green light to continue your work, knowing with certainty that the client is completely satisfied with the project thus far.

Remember, never assume. Even if you talk with the client over the phone and they say, “Hey, this looks great! You’re on the right track. Keep going,” you need to get their approval in writing. I have learned this the hard way, dealing with clients who give verbal approval, only to recant it later. That resulted in more work for me, for less pay (because I still had to stay within the specified budget). Maintaining good client relations is all about giving due diligence to proper communications.