Parc Entertainment - A Video Production Company - Birmingham, AL

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.

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.