If a client calls me to say they need me and your camera package for eight hours and I may already know what my day rate is and I'm going to tell them 10 and they tell me in the amount I'm like yeah that's alright you know that's 70 if it's at 75 an hour right you just kind of know cuz you've done it enough and that's great they're coming to you with a number already.
I know some people who won't take a gig if the client doesn't have a budget. They've worked in the business long enough, have enough clients, that they get hired that way. When I was a grip, clients would call me with a budget of five hundred for twelve for a music video, time and a half for two hours after that and double time after that.
They want to work with clients that already have a budget and know what they're doing, who have projects that are already green lit and ready to go. If someone's in a position where they'll only take pre budgeted work that's great, all the power to them. But if it's not the case, you're going to take whatever work you can get.
I'm always looking for new clients because they come and go. If a client asks me for an estimate, I'm going to work at getting them a number. They may be asking because they really just don't know. Whether they're in the process of trying to get a budget green lit or they want to add video to a marketing package they may have a number for the whole campaign but not for the video component so they're doing preliminary numbers. I'm working on that relationship with them I'm going to find a number of them that's going to fit that project.
Some clients may have a budget determined or ready for the video component but they're not going to tell you because they're looking to get three bids from different companies and it may be that they're trying to get the best price which is totally understandable. Or it may be, like it is with certain enterprise level clients, they’re required to get different bids. The government works that way.
At times I've run into this advice and it kind of drives me a little nuts. Where people say the first person to give a number has already lost the negotiation. Now there might be some circles where that's true but this isn't the case here at all. If I have a mechanic working on my car and I asked for an estimate and they won't give me one I'm not going to work with that mechanic. I want to know what it's going to cost and they're the expert. The same thing can apply to a budget for a video production.
There are so many different variables and components that can affect the total price. How many actors? Are writing the script? Is it live-action with animation? Just animation requiring a graphic design to creating the assets? Hiring a narrator for the voice-over?
Here's an instance where you don't give them a number.
Video guy: “Okay well that sounds pretty straightforward I'll crunch some numbers and get you an estimate by the end of the day or early tomorrow morning.”
Client: “Oh sure sure but do you have a ballpark number that comes to mind.”
Video guy: “Well I really need to work them out in a spreadsheet you know to make sure the numbers are accurate.”
Client: “I totally understand but if you have a ballpark number? You know I wouldn't hold you to it.”
Video guy: “Okay I really shouldn't.”
Next Day
Client: “$1,400?! Oh, come on. yesterday you said $900!”
Maybe this has happened to you before where you've been in the situation where you really just want to please the client. They ask you for a ballpark number over the phone. I know for me, I'm compelled to want to be nice and give them a number but I'm going to do me them a disservice if I give them a number off the top of my head.
At times I may be right but when I'm wrong it's not good at all. Realize they're not trying to screw you. I've never had that situation. They really just want to know because they're talking about the project with me and that the number is the next big thing they need to figure out can they fit video into this component of the campaign for the budget they have. So they're just chomping at the bit to get this number.
I’ve done the same thing with my freelancers at times. I call up my After Effects guy to tell him about the project and find out how many hours it will take. He may know but if he has to get back to me I never make it a problem. But in the back of my mind, I want the number as soon as possible because I need to get a bid put together and sent to that client.
Another thing that happens is you ask the client what's the budget for this? They may say they really don't know. They don't have a number but then when it comes time to you know give them your budget estimate, this happens.
Video guy: “So worked it all out and the total is going to be $1400 for the day.”
Client: $1400? I was thinking more like $900.
Video guy: “I thought you said you didn't have a number.”
Client: “Well I didn't well.”
Video guy: “Then where did I never come from?”
Client: “I don't know!”
This has happened to me before and here's the thing- they're not being a jerk. They really didn't have a number before. They just didn't realize that there was actually a number in the back of their head. It just didn't come out until I gave them a number and that's fine. It's an education point now where I can explain why the number that happens to be in their head isn't accurate. And it's not a problem because I've worked out my budget. I've done my spreadsheet. I'm able to explain to them here's how many hours, rental etc. I can now make sure that we're on the same page.
Now sometimes I have a call with the client to go over an estimate and they ask if I can lower it a little bit. I may because I want to do a favor them because they’re a good client or they’re potentially a new client I want to gain. I would use the lower end of my hourly rate.
In some cases, you may have already bid low or don’t lower your rate period. In that case, the scope of the job would need to change to fit their lower budget. For example, in an animated explainer video, you may need to lower the total characters from 4 to 3 and background graphics from 5 to 3 to fit it into the budget. Or you may suggest they bring the duration down. If they're not willing to negotiate on that aspect it's then you may have to say no. There has to be some give-and-take. We don't want to ask the client to lower the expectations of what they want but if they don't have the budget to pay for it what are you going to do?
Keep in mind like I said previously, that people are people, not vending machines. I've been doing this for over 20 years and may have been bidding/estimating jobs even longer. It gets easier and you get more knowledgeable but it still has some psychology to it. There are times when I'm afraid we're not going to get the gig because were too high or even too low.
Too low? One thing to keep in mind is sometimes you may want to go really low on a gig in order to get it. If you're too high it’s understandable why the client might have a problem with it. But if you're too low some clients perceive that as a problem and wonder why. What's the problem? Are they a hard to work with? Do they not have enough work? Are they too new and therefore I'm going to have to spend too many hours holding their hand through the job? That might not be the case at all. Just know that bidding too low there's a perception there that's all part of us being human and not vending machines.
Video Credits
Music & Audio
Life Is Sweet
Silent Partner
https://www.youtube.com/audiolibrary/music
The Big Score (Music bed)
https://www.youtube.com/audiolibrary/music
Opening Audio
Cartoon UFO Sound
By Chilljeremy
https://www.freesound.org/people/Chilljeremy/sounds/395574/
Credits
Playing the Client who needed "big" lens:
L. Jeffrey Moore
https://www.youtube.com/channel/UCT0P8zpXW16TDXCJo6sJMdw
@ljeffreymoore
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