Budgets

Q:

So, I was recently asked to pitch for a shoot with ***** for *****. The topline brief included a total budget (presented to client) of $80,000. They had set the photographer fee at $1,000 with an inclusive social usage for 3 months (I assume paid post) they also wanted post production included within this fee!

My question is, how common is the huge disparity between total budget and photography fees?

A:

This huge disparity between total budget and photography fees sounds fishy to me. These days, many projects come from smaller social media agencies or directly from production companies, who often have more control over the production budget. We need to keep a watchful eye over who is hiring the photographer and setting the fees. Companies that control your fees may also be the same companies that have you sign away your copyright ownership. Know who you are dealing with, what you agree to, and who you are trusting.

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 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, so high 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 answer 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 is 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.

Q:

Flying to NYC next week from LA for a job with a producer that has booked me on many well paying jobs this year. Have yet to have dinner or a drink with them, if we do get dinner, is that a time where I slap my credit card down and try to pay for the meal? Or they may just cover it and so it goes?

A:

Yes! When you get a job, it is your turn to spoil your clients. Hopefully, your budget is slightly padded to help you take them to a baseball game, buy them the special dinner, whip up some unexpected craft service during the shoot day and then splurge for a nice wrap party dinner for all the crew. It’s part of the job for you (and your rep) to say thank you in all the possible ways without it being too over the top.

Bidding on a project without a shot list means you cannot know the exact costs for expenses, and you will be concepting the creative shot list. When you are wearing more hats, you need to charge for your time and call it a CREATIVE CONCEPTING FEE.

When bidding on a job,  you are in the position to make an educated decision to be the “bank” running all the costs through your own company vs having it go through the producer.  Any markup or differences in actual prices will be a profit to whoever gets paid for the job. This can be you if you want to handle your billing. The decision is yours.

When you’re asked to bid on a job and choose a producer to work with, it’s important to make an educated decision about billing. Many producers handle all the costs and serve as the financial intermediary, and this is also common among reps. However, this isn’t how I operate, so I can’t speak from that perspective.

You need to decide whether you want the money to go through your name, directly through the producer, or through the rep. This decision should be made and clarified beforehand. If you choose to handle billing yourself, keep in mind that there could be a markup and leftover money from production expenses that could potentially benefit the producer.

Some photographers prefer to manage their own billing to avoid the markup and keep more of the budget, but this might limit your opportunities to work with certain producers. It’s worth considering how many producers would be willing to work under these terms. Ultimately, it’s your decision and you should carefully weigh your options.

Q:

Hi Andrea! I have a question regarding one-sheets that maybe might be helpful for the community. Would you suggest including a project minimum? I’ve been getting a lot of requests for “rate cards” and I usually say it’s project dependent.

A:

Photographer’s rates depend on the type of work you do. If you can simplify this request with a rate card, it would save you time. My goal as the agent is to save time by quickly finding out if we should continue this conversation by quoting a price range. I’ll say, “Our day rate fee for this would usually be somewhere between 4,000 – 10,000, depending on many factors like shot count, shot list, day count, the creative component of the images, and what the licensed usage rights are. What is your budget?” I find a price range to be the fastest way to get to the next step.

Clients don’t always have all the facts when we are bidding a job, leading us to under-bid certain areas. If more responsibility falls into your lap than expected, don’t hold back in stating your case to request more $. Clients know that some gray areas may result in an overage, but they need us to be the ones to ask for it.

Sometimes we bid on projects where we don’t have all the information yet, and the client may not have all the details either, leading to many assumptions. We should include “TBD” (to be determined) on those line items in our bid to protect ourselves. Even if we don’t include them, once the job is awarded and more responsibilities shift to us that were initially thought to be handled by the client, don’t hesitate to ask for additional funds. Address any new needs or changes directly with the client—don’t get frustrated. Often, they will understand because the situation was unknown at the time. Request more prep days, additional tech scout days if needed, extra post time, or anything else necessary. Remember, just because the bid is awarded doesn’t mean you have to absorb these changes without discussing them.

Q:

Hey there, I had a meeting today with a client that I would really like to work with. The meeting went great but they asked what my test rate is and I’m kind of at a loss. Any suggestions on pricing a test would be greatly appreciated.

A:

A test rate usually falls within half of what the regular day rate can be for a client. The logic behind the test rate is how it does not include usage licensing fees. This principle is the same premise for how I price a pre-light day; always have the estimate read, “no usage included” next to this fee.

Q:

How established does a photographer need to be to put their work in front of art and creative directors? Do art and creative directors want to know that my shoots are pretty “scrappy” on the backend or should I try to appear larger than I actually am?

A:

Being pretty scrappy on the backend can actually work well for you when they need stills on a broadcast shoot or a small crew or low-budget project. The other part of that is an editorial style is often precisely what clients are looking for. Today’s photo industry is always on the search for a wide variety of styles and a multitude of skill sets. Use this to let them know all the benefits about your speed, how many images per day, any other crafts you offer like motion/GIFS, and how nimble crew members cover more than one role. Sell your scrappy approach!