Bidding Process

Q:

I’m raising my prices for the upcoming year. Should the increase be the same for all clients, so everyone pays the same? Or should the old client’s loyalty be taken into consideration? What about clients who just became clients this year?

A:

Sustaining an ongoing business depends on constant reevaluation matching our financial intake to the reality of the cost of living. Times change, so we business owners have to change with it. Mostly, we need to stay aware of the cost of living and the current rates for our expenses. Mileage rates, meals, and electricity bills all affect our business costs. What are rental studios charging for equipment? What are assistant rates and Digi Tech’s capture package costs now? Old or new client budgets may affect bidding situations, but overall we should be charging what we need to run a solid long-term business. 

Q:

When you submit a bid – are you legally locked into it?

A:

My answer to this is not from a lawyer but my own rep opinion: Why submit a bid if you don’t want to be locked into it? Perhaps you get busy and are offered a higher-paid job? Whatever the reason is, you would probably lose that client in the future if your availability changes after providing them the 1st hold. I say be honest and give them a 2nd hold if this is the issue. Be upfront if this is a client you want to keep. Once either of you signs a contract, you may have legal issues, so you can protect yourself by including the term – “Estimate is valid for 14 days from the date of issue.”

Bidding a job means accurate prices, but who is to say what is accurate?

Numbers are only accurate if both parties understand the basis of each cost. If one item’s price depends on another item’s cost or a specific aspect of the shoot is changed, make it clear before it screws up your pricing. 

Remember, expect clients to make changes after you submit your bid. Define each line item’s price clearly as an estimate cannot have too much information. Cover yourself!

You are up for a job. Bidding and negotiating is the open door opportunity to get the client to understand how you are best for this project based on your approach. Our challenge is to align our ideas to match what they are going for. I see it like a maze of gated doorways as we look to follow the one that opens. Throw out your ideas and see what sticks with a question format allowing them a chance to redirect your ideas toward their goal. 

When we get bid requests asking for our price, but they don’t have the project information, I hear, “I don’t do this often, I don’t know how this works, and I expect you to do most of our job – so inform us what our $500-$3000 budget will get us.”

Four ways I respond:

1. I cannot give a cost without more information. 
2. It sounds like this will end up being between 10k-30k, give or take some, depending on your job specifics. 
3. This may be at least 10k, so we can discuss this to get more exact if that is near your budget. 
4. I am available to help create this job for you, and here are my option ideas to git within the 3-8k budget or the 10-12k budget range. 

Q:

How often are people submitting bids vs estimates? You mentioned not being able to “change” the bid in a post. Why even submit a hard bid if you don’t have all the info?

A:

The title BID or ESTIMATE are interchangeable in our industry. The terms we include state how the bid or estimate “is based on information provided, any changes may incur overages.” Stating this term covers us to make changes, but legally it may be safer to call it an estimate. If a client does not know what they want, we should not submit a bid or estimate as we need to base our numbers on the practical costs of the production. 

Knowing the client’s budget, I like to sneak in $500 more to get as much as possible without my response risk being too high. My response is to stay within their playing field but still do my job to get us paid as much as possible. 

Bidding can sometimes lead to an intense panic mode like we are in a time pressure machine that feels so real. Last-minute production decisions involving many people can feel like a monumental crisis. I’ve seen it and felt this panic myself as it will rise and then simmer down with a flick of a switch.

Know that this potential frenzy state of emotion could be a regular piece of the bidding puzzle. 

Don’t you want to know where your bid total stands with the client?

It can be helpful to have an excuse to check in on your bid after submitting it. 

If the client left out some piece of info about the job, I could put in a low price, knowing they may come back to ask for more. 

That check-in can allow us to feel out the budget and see if there is room to bump up the price. 

Q:

I’m putting together an estimate for a corporate shoot. I usually charge for travel days, should I also have a line item for crew travel days, or is that something I should be covering? Any advice?

A:

Bidding is all about finessing what gets you the most gain while still getting the job. Crew costs are within the production expenses, including all their prep, post, and overtime. If being hired as a local helps your odds of getting the job, you can stash a little extra in your equipment instead of calling out “travel” costs.