Strategic Budgeting How to Budget, Quote and Crew Video Projects
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1 RHED Pixel Strategic Budgeting How to Budget, Quote and Crew Video Projects Richard Harrington - RHED Pixel twitter.com/ rhedpixel facebook.com/ RichHarringtonStuff youtube.com/ rhedpixeltv
2 Goals of Workshop For many, the art of budgeting is a black art. Instead, they settle on a BONSOP approach (back of napkin/seat of pants) to craft their financial plan. It doesn't have to be this way. RHED Pixel
3 Goals of Workshop Learn how you can break down a project into a practical budget Learn how to identify deliverables Learn how to estimate time and labor. RHED Pixel
4 Richard Harrington Scott Kelby RHED Pixel ( Adobe Certified Expert & Trainer Apple Certified Instructor NAPP Instructor Creative COW Project Management Professional Consult on digital media production and web content Personal blog Social media rhedpixel
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6 About You Worked in Video 1 Year or Less 2 5 Years 6 9 Years 10+ Years
7 RHED Pixel What is RHED Pixel? A quick introduction about what I do for a living...
8 Mission Statement An integrated, visual communications company that helps its clients craft motivational and exciting messages
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11 What is RHED Pixel? Company founded in % Full Service Clients 20% Support to Other Professionals Current staff of Fourteen Winer Cine Award in 2004 Offers variety of film, video, and multimedia services
12 Pricing Determining what you can ask to be paid
13 t notice. NG SERVICES STA or Final Cut Pro Nonlinear Editing... $120/hr Drive Rental after completion... $75/wk Stock Elements/Footage rom Library $25/clip Rates for Services Keep a rate sheet Use a spreadsheet Estimating software Producer Associate Producer Production Assistant Project Manager Photographer.. MOTION GRAPHICS GEAR RENT sign/ per hour... $90/hr der/ per hour.. $45/hr k Elements/Footage Library $25/clip Camera Package (DVCAM Camera Package (Beta SP Photography Package.. Lighting. Audio Package VD & CD AUTHORING MUSIC esign.. quote g Services... $80/hr ncoding Services Separate Needle drop... Up to 10 Minutes Minutes. Over 30 Minutes..... Original Score... q UICKTIME VR WEB DESIGN R Tours quote Website Design. quot PRODUCTION BLANK MEDIA... $600/day... $650/day.. $650/day $350/day. $350/day nt.. $250/day ting purposes only. s includin CD-Recordable. $10 CD-Rewriteable. $12 DVD-Recordable... $15 Zip Disk.. $ 60GB FireWire Drive On Disc Prin G
14 ctive 08 /01/0 ject to change with On-Line Editing Digital Video Effects Avid Editing Narra Supervised Dubbing Character Generation Graphics & Animation Multimedia Services Music & Effects Crews with Equipment change without notice. EDITING SERVICES STAFF Avid or Final Cut Pro Nonlinear Editing... $120/hr Drive Rental after completion... $75/wk Stock Elements/Footage From Library $25/clip Producer.$75/hr Associate Producer.....$45/hr Production Assistant $35/hr Project Manager.. $75/hr Photographer... $75/hr MOTION GRAPHICS GEAR RENTAL Design/ per hour... $90/hr Render/ per hour.. $45/hr Stock Elements/Footage From Library $25/clip Camera Package (DVCAM).. $300/day Camera Package (Beta SP).. $575/day Photography Package... $300/day Lighting.. quote Audio Package. quote DVD & CD AUTHORING MUSIC enu Design.. quote thoring Services... $80/hr ture & Encoding Services Separate QUICKTIME VR tive VR Tours Needle drop......$95 Up to 10 Minutes... $ Minutes. $425 Over 30 Minutes. Original Score The Rate Sheet
15 Capabilities Competitive analysis Websites Similar industries Financial need 40-60% billable time Overhead Savings RHED Pixel
16 Rates for Services Three components People Gear Facility Charge for the assumptions Creative Design Shipping Storage & Archiving RHED Pixel
17 Material Costs Constantly change Look for savings Compare vendors at least annually Think bulk/group leverage Build costs in Track usage at employee level RHED Pixel
18 Overhead Rent Leases / Maintenance Utilities (Especially Communications) Amenities Marketing Employee Benefits Recruitment / Training Insurance RHED Pixel
19 Scoping the Project A little bit of clarity
20 Scoping the Project Will take 2-16 hours to complete Document 2-10 pages... Will become the charter Get all key players to attend Quiet room/no distractions Get Signoff
21 Scoping Document Project Name Executive Summary Background Project Scope (High Level) Key Roles Signature Lines - Sign Off Charter
22 Knowledge is Happiness Clear definition of work to be performed Clear expectation on acceptance criteria Identification of deadlines to be achieved Team established Leadership identified
23 RHED Pixel Budget Determining what you can ask to be paid
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26 DESCRIPTION QTY RATE PER DISCOUNT TOTAL Pre-Production Producer 1 $! hr 0% $! Production Coordinator 1 $! hr 0% $! Production Assistant 2 $! hr 0% $! Sub-Total : Pre-Production $! DESCRIPTION QTY PER TOTAL Pre-Production Producer 1 hr Production Coordinator 1 hr Production Assistant 1 hr Sub-Total : Pre-Production $! Production Director 1 $! half 0% $! Videographer 1 $! half 0% $! Audio/Grip 1 $! half 0% $! Camera Package HPX $! half 0% $! Lighting Package - 3 Light Interview Kit 1 $! day 0% $! Audio Package - Interview 1 $! day 0% $! P2 Media Fee 0.5 $! fee 0% $! Expendables 0.5 $! fee 0% $! Transportation "Local 0.5 $! fee 0% $! Sub-Total : Production $! 2, Production Director 1 half Videographer 1 half Audio/Grip 1 half Camera Package HPX half Lighting Package - 3 Light Interview Kit 1 day Audio Package - Interview 1 day P2 Media Fee 0.5 fee Expendables 0.5 fee Transportation!Local 0.5 fee Sub-Total : Production $! 1, Post-Production Producer 1 $! hr 0% $! On-Line Edit Suite w/ Editor 2 $! hr 0% $! Graphic Artist 2D 2 $! hr 0% $! Internet Review (Per Project) 0.5 $! fee 0% $! Compression Set Up Fee 1 $! fee 0% $! Compression Any Format 1 $! min 0% $! Compression Additional Formats 1 $! 5.00 min 0% $! 5.00 Archiving - (Per Project) 0.5 $! fee 0% $! Sub-Total : Post-Production $! Post-Production Producer 1 hr On-Line Edit Suite w/ Editor 2 hr Graphic Artist 2D 1 hr Internet Review (Per Project) 0.5 fee Compression Set Up Fee 1 fee Compression Any Format 1 min Compression Additional Formats 1 min Archiving - (Per Project) 0.5 fee Sub-Total : Post-Production $! Shipping $! 0.00 Tax $! 0.00 TOTAL $! 3, Shipping $! 0.00 Tax $! 0.00 TOTAL $! 2, Possible Extras Prompter 1 $! day 0% $! Prompter Operator 1 $! half 0% $! Makeup Artist 1 $! half 0% $! Stock Music - (Non Broadcast) 1 $! cut 0% $! Sub-Total : Possible Extras $! 1, Possible Extras Prompter 1 day $" Prompter Operator 1 half $" Makeup Artist 1 half $" Sub-Total : Possible Extras $!
27 Pre-Production DESCRIPTION QTY RATE PER DISCOUNT TOTAL DESCRIPTION QTY PER TOTAL Producer 1 $! Pre-Production Producer 1 hr hr 0% $! Production Coordinator 1 hr Production Coordinator 1 $! 55.00Production hr Assistant 0% 1 $! hr Sub-Total : Pre-Production $! Production Assistant 2 $! hr 0% $! Production Director 1 half Videographer 1 half Audio/Grip 1 half Camera Package HPX half Lighting Package - 3 Light Interview Kit 1 day Audio Package - Interview 1 day P2 Media Fee 0.5 fee Expendables 0.5 fee Sub-Total : Pre-Production $! Production Director 1 $! half 0% $! Videographer 1 $! half 0% $! Transportation!Local 0.5 fee Sub-Total : Production $! 1, Audio/Grip 1 $! half 0% $! Camera Package HPX $! half 0% $! Post-Production Producer 1 hr On-Line Edit Suite w/ Editor 2 hr Graphic Artist 2D 1 hr Internet Review (Per Project) 0.5 fee Compression Set Up Fee 1 fee Compression Any Format 1 min Compression Additional Formats 1 min Archiving - (Per Project) 0.5 fee Lighting Package - 3 Light Interview Kit 1 $! day 0% $! Audio Package - Interview 1 $! day 0% $! P2 Media Fee 0.5 $! fee 0% $! Expendables 0.5 $! fee 0% $! Sub-Total : Post-Production $! Transportation "Local 0.5 $! fee 0% $! Sub-Total : Production $! 2, Post-Production Shipping $! 0.00 Tax $! 0.00 TOTAL $! 2, Producer 1 $! hr 0% $! Possible Extras Prompter 1 day $" Prompter Operator 1 half $" Makeup Artist 1 half $" Sub-Total : Possible Extras $! On-Line Edit Suite w/ Editor 2 $! hr 0% $! Graphic Artist 2D 2 $! hr 0% $! Internet Review (Per Project) 0.5 $! fee 0% $! Compression Set Up Fee 1 $! fee 0% $! Compression Any Format 1 $! min 0% $! Compression Additional Formats 1 $! 5.00 min 0% $! 5.00
28 DESCRIPTION QTY RATE PER DISCOUNT TOTAL Pre-Production Producer 1 $! hr 0% $! Production Coordinator 1 $! hr 0% $! Production Assistant 2 $! hr 0% $! Sub-Total : Pre-Production $! DESCRIPTION QTY PER TOTAL Pre-Production Producer 1 hr Production Coordinator 1 hr Production Assistant 1 hr Sub-Total : Pre-Production $! Production Director 1 $! half 0% $! Videographer 1 $! half 0% $! Audio/Grip 1 $! half 0% $! Camera Package HPX $! half 0% $! Lighting Package - 3 Light Interview Kit 1 $! day 0% $! Audio Package - Interview 1 $! day 0% $! P2 Media Fee 0.5 $! fee 0% $! Expendables 0.5 $! fee 0% $! Transportation "Local 0.5 $! fee 0% $! Sub-Total : Production $! 2, Production Director 1 half Videographer 1 half Audio/Grip 1 half Camera Package HPX half Lighting Package - 3 Light Interview Kit 1 day Audio Package - Interview 1 day P2 Media Fee 0.5 fee Expendables 0.5 fee Transportation!Local 0.5 fee Sub-Total : Production $! 1, Post-Production Producer 1 $! hr 0% $! On-Line Edit Suite w/ Editor 2 $! hr 0% $! Graphic Artist 2D 2 $! hr 0% $! Internet Review (Per Project) 0.5 $! fee 0% $! Compression Set Up Fee 1 $! fee 0% $! Compression Any Format 1 $! min 0% $! Compression Additional Formats 1 $! 5.00 min 0% $! 5.00 Archiving - (Per Project) 0.5 $! fee 0% $! Sub-Total : Post-Production $! Post-Production Producer 1 hr On-Line Edit Suite w/ Editor 2 hr Graphic Artist 2D 1 hr Internet Review (Per Project) 0.5 fee Compression Set Up Fee 1 fee Compression Any Format 1 min Compression Additional Formats 1 min Archiving - (Per Project) 0.5 fee Sub-Total : Post-Production $! Shipping $! 0.00 Tax $! 0.00 TOTAL $! 3, Shipping $! 0.00 Tax $! 0.00 TOTAL $! 2, Possible Extras Prompter 1 $! day 0% $! Prompter Operator 1 $! half 0% $! Makeup Artist 1 $! half 0% $! Stock Music - (Non Broadcast) 1 $! cut 0% $! Sub-Total : Possible Extras $! 1, Possible Extras Prompter 1 day $" Prompter Operator 1 half $" Makeup Artist 1 half $" Sub-Total : Possible Extras $!
29 Post-Production DESCRIPTION QTY PER TOTAL DESCRIPTION QTY RATE PER DISCOUNT TOTAL Pre-Production Producer 1 $! hr 0% $! Production Coordinator 1 $! hr 0% $! Pre-Production Producer 1 hr Production Assistant 2 $! hr 0% $! Sub-Total : Pre-Production $! Production Coordinator 1 hr Production Director 1 $! half 0% $! Videographer 1 $! half 0% $! Audio/Grip 1 $! half 0% $! Camera Package HPX $! half 0% $! Lighting Package - 3 Light Interview Kit 1 $! day 0% $! Audio Sub-Total Package - Interview : Pre-Production 1 $! day 0% $! P2 Media Fee 0.5 $! fee 0% $! Expendables 0.5 $! fee 0% $! Production Assistant 1 hr Sub-Total : Pre-Production $! Transportation "Local 0.5 $! fee 0% $! Production Director 1 half Sub-Total : Production $! 2, Post-Production Producer 1 $! hr 0% $! On-Line Edit Suite w/ Editor 2 $! hr 0% $! Graphic Artist 2D 2 $! hr 0% $! Internet Review (Per Project) 0.5 $! fee 0% $! Compression Set Up Fee 1 $! fee 0% $! Compression Any Format 1 $! min 0% $! Compression Additional Formats 1 $! 5.00 min 0% $! 5.00 Archiving - (Per Project) 0.5 $! fee 0% $! Videographer 1 half Audio/Grip 1 half Camera Package HPX half Sub-Total : Post-Production $! Lighting Package - 3 Light Interview Kit 1 day Shipping $! 0.00 Tax $! 0.00 Audio Package - Interview 1 day P2 Media Fee 0.5 fee TOTAL $! 3, Expendables 0.5 fee Possible Extras Prompter 1 $! day 0% $! Prompter Operator 1 $! half 0% $! Makeup Artist 1 $! half 0% $! Stock Music - (Non Broadcast) 1 $! cut 0% $! Sub-Total : Possible Extras $! 1, Transportation!Local 0.5 fee Sub-Total : Production $! 1,800.00
30 Time Estimates Historical data Time logs similar projects Past budgets Analysis (1O+4M+1P) 6 Used by government RHED Pixel
31 (1 Optimistic) + 4 Most Likely) + 1 Pessimistic) 6
32 Peer Review Number checking Forgotten charges Plausibility Second opinion RHED Pixel
33 External Review Peers in different market Strategic partners Subject matter experts istockphoto
34 Work Breakdown Structure Key to budgeting Identify major tasks to be completed Keep breaking the job down into smaller pieces until you can accurately budget it and create time estimates Get input from client and team
35 XYZ Tradeshow DVD Demo Loop Video Assets DVD with Menus Manufacturing & Packaging Project Management Storyboard Designs Box Art Asset Acquisition Audio Sweetening Photoshop Menus Disc Duplication Client Communication Color Correction DVD Authoring Assembly Quality Control Encoding Shipping
36
37 istockphoto Quote/Proposal Getting the financial plan onto paper
38 Proposals Quick Response What is needed Level of detail Library of Resources Photos Bios Samples Past Proposals istockphoto
39 Getting Started Who are you trying to reach? Why do you need to reach them? What are you trying to say? What challenges are in the way? What are the requirements? Who s on your team? istockphoto
40 Refining the Message Read the RFP and notes from client meeting Review the past relationship Discuss with project sponsor Gather the team Gather outside information Create a treatment Define the goal istockphoto
41 Brainstorming Session Gather up to 8 team members Distribute RFP/project requirements in advance Appoint a moderator Ensure equal participation Document ALL ideas Keep it moving/fun istockphoto
42 The Written Word Catch & keep attention You ARE selling something Avoid boilerplate language as much as possible Write with your audience in mind at all times Let personality show through Cardoso
43 Fixed Price Contracts Growing in popularity Protect both parties if written properly Frequently favor the client, not vendor Important to CLEARLY define the product and service to be delivered Need to provide protection to you if the scope of the project changes
44 Fixed Price Contracts Keep accurate time records Bottom Line: Say what you are going to do Do what you say Update along the way Track changes/get approval for each as they arise Chad McDermott
45 Finishing the Proposal Fresh proofread by two people with fresh view Review hard copy with red pen Internal review EARLY Get all sponsors to sign draft Review outside normal setting Check for odd line breaks istockphoto
46 Finishing the Proposal Look for garbled print Distribute and annotate PDF Confirm and test output device Confirm requirements of RFP Determine binding materials Do not hand off at final stages Ensure personal delivery istockphoto
47 RHED Pixel Crewing Building the team you need
48 Recruiting Contractors Join local professional groups Ask peers or existing vendors Join user group communities DSLR meetups meetup.com Apple and Adobe user groups RHED Pixel
49 Crewing Websites services.creativecow.net
50 Managing Contractors Clear expectations Job rate vs. hourly rate Reporting frequency Supervision Employee status Be careful to follow rules RHED Pixel
51 Let s Budget An exercise in practical budgeting
52 kentoh Payment Terms Hopefully it s a matter of when and not if...
53 Payment Terms Period based At time of service Progress payments End of month kentoh
54 Period Based Employee/employer relationship Freelancer on long-term assignment Push for weekly Accept bi-monthly Avoid monthly or longer Make sure submit all financial requirements on day one of first hire Keep W-9 and tax ID with you Jakub Jirsak
55 At Time of Service Payment is due upon receipt of services Difficult to achieve as it s uncommon in video industry Accept credit cards Will take small loss in processing fees Usually offset by avoiding other credit charges and cash-flow issues Good for simple jobs and gear rental ( 1 day) Fotolia
56 Progress Payments Most effective when tied to milestones Try to avoid payments of identical dollar amounts as it can lead to confusion with accounts payable 55/45 (Deposit Production) 40/35/25 (Deposit Production Post) 35/30/20/15 (Long-term project) Be prepared to withhold or watermark deliverables if client falls behind on payments (warn first) istockphoto
57 End of Month Typically used with time and materials agreements Time-tracking involved Ensure you have accurate system for tracking change-orders and client requests Generally risky and should be avoided Vladimir Voronin
58 ragsac Billing Strategies Increase your chances of being paid on time
59 Billing Bid Original Estimate Budget Scope of Work Statement What was initially agreed upon by the client Change Orders Written Communication ragsac
60 Final Bill Incorporates Client Constraints Initial Budget Change Orders May be Lower or Higher be Honest ragsac
61 Delivering the Bill Include Client Name Include Project or PO # Formats PDF Hard Copy in the mail Close the Loop Face to Face Phone Fax With Deliverables
62 RHED Pixel 2108-C Gallows Road Vienna, VA Invoice Date Invoice No. 06/30/ Bill To Metropolitan Washington Council of Gov 777 North Capitol St. N.E. Suite 300 Washington, DC Attn: Brian L. Terms Net 30 Days Due Date 07/30/05 Job Working Lands Date Work Performed Qty Rate Amount Production Services - Prep, Shoot, and Digitze video footage of Meeting 1 1, , Balance to be invoiced upon project completion Total $1,790.00
63 Collections Run accounts receivable reports Call accounts payable department Be polite, but firm Call in advance of due date Place into contracts late fees Incremental billing/deposits reduces issue Paul Maguire
64 istockphoto
65 RHED Pixel Resources Things to help get the job done
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67 forums.creativecow.net/dslr
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69
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71 Understanding Adobe Photoshop Photoshop for Video Final Cut Help Aperture Quick Tip Producing Video Podcasts MacBreak Work DSLR Video
72 Understanding Adobe Photoshop Photoshop for Video Final Cut Help Aperture Quick Tip Producing Video Podcasts MacBreak Work DSLR Video
73 Understanding Adobe Photoshop Photoshop for Video Final Cut Help Aperture Quick Tip Producing Video Podcasts MacBreak Work DSLR Video
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78 Professional Web Video Add professional-level web video to your Web communications toolbox Solid introduction to professional planning and production techniques Audio, lighting, shooting, and editing for the web Production management from soup to nuts in an accessible form
79 Richard Harrington RHED Pixel ( Technical Questions via Creative Cow All Resources link from Available for consultation Feel free to grab a business card Scott Kelby
80 Richard Harrington twitter.com/rhedpixel facebook.com/richharringtonstuff linkedin.com/in/richardharrington Scott Kelby RichardHarringtonBlog.com
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82 RHED Pixel Essential Preproduction for Video: How to Budget, Quote and Crew Video Projects Richard Harrington - RHED Pixel twitter.com/ rhedpixel facebook.com/ RichHarringtonStuff youtube.com/ rhedpixeltv
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