The Cost and Value of Media Production Services
How to budget for video production, Website development and presentation design services
By far the most frequently asked question about video production, Website development and presentation design is, “what does it cost?”
There’s a very simple answer, “it depends.”
Advent Media, Inc. creates CUSTOM content, specifically for your audience – whether it be viewers of your video, users on your Website or attendees at your event – that conveys the specific message you have for that audience. So it’s virtually impossible to give a fixed-price quote the first time we talk.
You may have seen the illustration about “Pick Two: Fast, Cheap, Good.”
Fast + Cheap = Not Good
Cheap + Good = Not Fast
Good + Fast = Not Cheap
This old saw rings true when it comes to the cost of video production, Website development and presentation design.
Coupled with the amount of work required to create the assets and assemble them, budgets can be anywhere. Here are some of the budgeting strategies we use at Advent Media, Inc.
We have an "hourly rate" for clients who need open-ended production services such as videography, editing, copywriting or other things that can take varying amounts of time. For some services we have a minimum number of hours because of the setup time involved.
Flat Fee Pricing:
When quantities are known, we offer "Flat fee" and "Per Unit" pricing. If we're going to do a series of presentation support gigs or a video digest series for a client, where time and gear requirements are consistent, we can negotiate a flat fee for each event. For things such as digital transfers, disk duplication, Supernova screens or other "products," we offer a fixed fee per-unit price list, available upon request.
Negotiated Fixed Fees:
But for all of our creative production work, whether for video, Websites, presentation or branding we negotiate fees as part of a contract using a rather complicated matrix of factors, the most important of which is “how much does the client have to spend.” As a result we commit to work within any reasonable budget. Of course, the big question is, "what is reasonable?”
It’s been interesting to track this over the years. Back in 1975 when I was at Ohio State we were doing very labor intensive turnkey projects (in slide Multi-Image - the equivalent of today's corporate video) for around $4,500. And about that time you could buy a loaded Chevy for about $4,500.
40 years later a loaded Chevy is closer to $45,000, with lesser models and trim levels starting around $18,000.
Amazingly enough, the cost to do custom video, Websites and PowerPoint has more or less tracked with the cost of a new car. A high-end documentary short with multiple cameras, many locations, lots of interview subjects, good B-roll and high-end graphics is going to approach $45K. A responsive, well-designed Website with serious data collection capabilities or e-commerce can reach the 5 or 6-figure price tags of more luxurious cars or trucks.
Now you may think that a shorter video or a Website with fewer pages would lower the cost significantly. That’s not necessarily the case. Each project requires a lot of “pre-production” which includes the planning and writing phases to determine exactly what your viewers will see. Shorter projects often require more work to condense the information into a limited time frame. That’s why for video a “per finished minute” budget can vary widely, from $500 - $5,000 per finished minute. The same goes for a “per page” cost on a Website.
So while we could approach media pricing like a new car (with a base price plus options,) or like a commodity (price per unit), we think it’s more constructive to approach our clients’ major projects like design-build remodeling or construction contractors. They start with how much money their customers have to spend and compare that with the objectives the customer wants to achieve. Then they craft a way to meet those objectives within the budget. For the remodelers, that means carefully choosing materials and finishes, and designing in a way to minimize labor cost. For us, it means budgeting time, assets and resources to achieve the communication goals you have within the funds available, .
For remodelres, if the client decides they want to add a door or change a closet, that results in a "change order," which alters the budget. Likewise with us. Unless the scope of work changes, we guarantee that the price will not change, as long as we follow the approved Treatment.
That's why we like the "Negotiated Fixed Fee" option of our production process. You can be assured you'll not have any budget overruns, and we have set paramaters in which to deliver your product. It's a win-win that provides a no-surprises, no excuses experience.
In the end, it's all about maximizing value in video production, Website design and presentation content.
About Competitive Bidding
Before I wrap up this post on cost, let’s address competitive bidding for creative services. Creative services are ARTFORMS.
When it comes to competitive bids on media projects, one has to consider that we are artists working in a virtual medium of 1s and 0s. Our pallet is red, blue and green pixels on a screen. Our brushes are words, photographs and moving images. And our art is interactive and kinetic.
Now imagine if there was competitive bidding for the Sistine Chapel, and the bidders were Michelangelo and Picasso. If Picasso had won, the chapel ceiling would look entirely different than it does today. When bidding on creative services, the resulting work will be as unique as the artist who creates it. So instead of competitive bidding on price, clients need to choose someone who can most reliably convey the message they need to communicate to their audience.
Competitive bidding is closely related to the construction industry.
In general contracting construction you have two parties at work. First you have the architects who plan the project and specify exactly how it’s supposed to look and function. Then you hire a general contractor who follows those instructions exactly to create what the architect envisioned. The architect provides a fixed scope of work on which competing contractors can bid. The one who can most reliably deliver what the architect designed at the lowest cost usually wins the bid.
IF all the creative decisions were made previously and we are presented with the production documents (script, storyboard, etc.), THEN a competitive bid on the mechanics of production would work. But if clients expect us to bid on the creation of the artwork from the ground up, an alternative method needs to be used to select your producer.
The alternative construction method is called “Design-Build,” or “DB.” With DB, the contractor is also the designer. Because the contractor will be building the design, the scope can be controlled more accurately to fit the client’s budget.
The production process at Advent Media, Inc. usually resembles the Design-Build method, where, by working closely with the client, we can achieve the desired results within our client's budget and time frame.
With more than 40 years of experience, we believe Advent Media, Inc. has the systems and creative energies to provide the creative spark that will communicate with audiences. It all starts with a conversation, not an RFP.
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