Bidding Process

Q:

What would I put as a line item on my invoice for hourly random admin things? This came up recently when I had a client send me so many pages of documents to fill out; they’re also calling me and winding up in calls for hours, and having me send proofs in multiple different ways. I want to bill for that time since it’s excessive, but I don’t know what to call it. I would love any insight you have!

A:

Every bid I do has prep days to cover admin organizational time. I’ve even put an in-person pre-production meeting line item in the bid with a $0 amount to show that our prep time is not free. 

It’s good to spell out your terms with all the specifics, as far as which tasks are covered by your prep days, so if they want to add more, it’s clear they will pay more. 

Make an educated choice when choosing a producer to help you bid on a job. 

Be aware that some charge a 10% production fee on the expenses, and some don’t. Some do waive that fee if you ask, so know that you do have options.

Q:

What does it mean when a client wants me to bid on a project, but they don’t want to have a creative call?

A:

If clients don’t want a creative call, that may be a sign for us to read into how they are not taking this as seriously as we’d like. It is time for the photographer to share their vision and approach, introducing the director with whom you will be on set. I read into them skipping this stage in a couple of ways: You may be the 3rd bidder and not be high on their list for this project, so you should kick butt on your treatment, as that can serve as your intro to the creatives and the client. Your estimate should be as ethically conservative as safely possible to entice the client to choose you, but remember, you could get locked into these prices in the future. This project may not be happening yet, and they need your numbers to provide the client with a preliminary budget range. 

Q:

I recently lost out on a job because my perpetuity number scared off the agency. They needed a 5-year license estimate and a perpetuity estimate. My 5-year license was $16,000, and perpetuity was 4 times that. Seemed fair to me because I’m not comfortable with a lifetime license of my images anyway. What are your thoughts on this? I’m gutted because I lost out on the job, but I’m ok with not giving a lifetime of license away for next to nothing. 

A:

When bidding on a job requesting usage duration fee options, those are often an excellent place to start high, expecting to negotiate and not risk losing the job. 

The usual fundamental reasons you could lose a job you are bidding on:

• They have a #1 favorite choice in mind based on their style. 

• Your overall estimate price is much higher than someone else’s, so high that they don’t even want to try to negotiate. 

• Your overall estimate price is very low, showing that you do not have the experience needed to fulfill the goals of this project. 

• Another bidder impressed them more with their treatment or ideas on the creative call.

Q:

How do I estimate a job when I am given the budget, but the layouts and the producer do not provide all the information I need?

A:

Estimating a job is not an accurate term because we are liable for our “estimate” price. Since an estimate is a “bid” for a project, we have to protect ourselves, as our reputation and the financial responsibility are on our shoulders. 

How I read the situation:

-They may be expecting you to be the creative director, creating their concepts, which is an additional role to be added to your fees. 

-Without all the details, you’ll need to expect fewer shots finished per day due to the exploration time required.

-Call it a rough ballpark estimate, making it clear you’ll need them to allow for revisions once you learn more information.

One of the untold languages of our business during triple bidding is when the response to your bid is requesting you to increase a particular line item, which usually means you are not the first choice. Ouch. I know it’s not easy, but it is best to know where you stand and what you are probably dealing with.

Our bidding process can sometimes lead to fast-paced, sticky dialogue situations, where we often act fast without taking a moment to think it through. In a rushed business environment, it may save a considerable loss to take an extra minute to triple-check and make decisions from a well-thought-out, rational state of mind. It’s worth it.

Negotiation points to use when clients ask specifically for a reduction in Creative Fees:

1. Scaling down any area of their usage terms.
2. Trimming the number of images, variation, and angles on the shot list. 
3. Reducing the number of final images included in usage terms.
4. Limiting shoot days hours maximum.
5. Time-saving production tasks they take over, like prop shopping, producing, retouching, casting, scouting, etc. 
6. Predetermined creative concepts/shot list they supply before the shoot day begins.
7. Guaranteed faster final payment and/or larger advance payment before the shoot begins.
8. Bulk discounted rate based on future projects. 

HOW TO GET THE JOB:

Be the director the client will hire you to be, from start to finish. 

Have your plan in mind and confidently share it as, “This is the way to go,” to achieve their goals. 

There is no need to buffer it with safe comments like, “My opinion is…” when you want to be hired as the creative lead carrying out your creative vision. 

When bidding on a job, clients may ask us to dive deeper into the basis of the costs. Put your business mind to work by understanding what the client needs to hear from you. 

Our estimates cover us for unexpected real-life additions like grip truck availability, insurance changes, overtime, etc. 

Our bids are not as black and white as a client would assume, so get ready to explain the gray areas in ways that speak their language.