Each month, we analyze a recent cost estimate, contract, or purchase order and present it in the form of a Pricing & Negotiating article. Redacting the names of the photographer and client allows us to share useful information that would otherwise be confidential. You can learn more about how we can help you with Pricing & Negotiating on the Consulting Services page of our website.
Editor’s Note: The lead image is a placeholder from the Phoblographer’s archives and wasn’t included in the final campaign. This article is provided to the Phoblographer with syndication rights from Wonderful Machine. It was written by Bryan Sheffield. You can find the original article here.
Concept: Lifestyle images capturing teachers, staff, and students across diverse school settings.
Licensing: Broadcast, Web Advertising, and Web Collateral use of up to 35 images for 1 year.
Photographer: Lifestyle and Portraiture photographer.
Client: Regional grocery store chain.
I recently helped a photographer estimate and negotiate a campaign for a large U.S.-based grocery chain. During our initial creative call, the agency explained they needed lifestyle photography featuring teachers and staff within a specific public school district. The grocery brand had partnered with the district to sponsor teaching awards and wanted a campaign to celebrate that collaboration.
The images would capture teachers in a range of real-world moments: working with students, collaborating with other faculty members, and working alone (grading papers, researching, decorating classrooms, etc.) The still images would serve as the sole visual content for a broadcast campaign, utilizing a Ken Burns-style approach with voiceover, supers, and anthemic music.
While the primary final use was broadcast, the campaign would also extend to Web & Social advertising and use on the client’s digital platforms. All usage was intended within the context of the final edited motion pieces, including 15-, 30-, and 60-second versions.
The client would provide the specific school, teachers, and staff to highlight, but requested a cost estimate covering all other elements. This included crew, residential location expenses, and the casting of 25 youth actors to portray students. The budget also accounted for set decoration, props, hair and makeup, wardrobe, and travel. The selected school was a five-hour drive from the photographer’s home base and 90 minutes from the nearest major metropolitan area.
I worked with the photographer to develop a preliminary three-day production schedule for the shoot: two days on location at the school and one day at a rented home. From there, we outlined the crew, art department, talent needs, and styling team, and started checking availability and high-level costs.
With every estimate, we make clear what we expect the client to provide. For this project, we explained that the client would provide access to the school locations, all featured teachers and staff, talent payments, Workers’ Compensation coverage for talent, and all video editing and post-production. They would also be responsible for agency and client travel, transportation, and entertainment expenses. Given the scale of the production, we required a 75% advance to initiate production due to large expenses.
Fees
The photographer had previously worked with the client on smaller, yet similar, campaigns. We both agreed that this positioned them as a preferred choice for the project and added strategic value to the bid. With this in mind, and also considering the creative brief, shot list, and the intended usage, I initially proposed a fee of $44,000. I structured this around a $3,000 daily creative fee, plus $35,000 for one year of Broadcast, Web Advertising, and Web Collateral usage of up to 35 images.
When I presented this framework to the photographer, they noted that the number may fall at the higher end of the client’s expectations and suggested a 15% reduction, given the multi-day shoot and the total number of images. I agreed this would be a good gesture, so we revised the creative/licensing fees to a total of $37,400.
In addition, we included three Photographer pre-production days at $1,200 per day to cover client meetings, creative planning, and crew sourcing. We also added one tech scout day at $1,500, and three travel days at $1,000 per day.
Crew
We budgeted nine First Assistant days at $700 per day for pre-production, travel, tech scout, load-in/set-up, and shoot days. We also included a Second Assistant at $650/day for the load-in/set-up and shoot days.
A Digital Tech was added for all three shoot days at $850/day.
The estimate included a Producer at $1,000/day for 15 days, covering prep, tech scout, load-in/set-up, and shoot days, and wrap. We also included a Production Coordinator at $700 per day, and two Production Assistants at $450 per day each. These fees were based on guidance provided by a local producer we had spoken to about the project.
Equipment
The photographer would provide their own cameras and lenses. A local rental house would bring in lighting, modifiers, stands, and grip equipment on a truck. The budget allocated $3,000 per day for the equipment package, $800 per day for the digital workstation rental, and $400 for 3 hard drives. We also included $4,400 for miscellaneous production supplies and expendables (tables, chairs, heaters, parking cones, safety vests, etc., at $1,100/day).
Styling Crew and Expenses
To manage the large cast, the budget accounted for a Wardrobe Stylist and three Wardrobe Assistants, and a Hair/Makeup Stylist and two assistants.
The agency had recently worked with an art team they were very happy with, so we connected with them to share the brief and request a quote. Their recommendation for a five-person crew consisted of one Production Designer/Stylist, one Production Design Coordinator, one Production Design Leadman, and two Production Design Set Dressers/Swings.
We included $11,000 for the supplemental wardrobe of 35 youth and 20 adult talent. Following the art team’s guidance, we estimated $12,200 for props, expendables, and trucking items to the sets.
Casting
After consulting with a local casting agency, we received a quote of $14,950 to cast 25 “real” youth participants. The agency’s creative team wanted to avoid professional talent and feature non-recognizable kids instead. That proposed approach meant conducting casting in local schools and through street casting.
Talent Fees
While our team oversaw and managed the entire casting process, the agency required all talent to be contracted and paid directly by them. We kept this line at $0, but suggested $1,000 per person based on our experience and our casting agent’s recommendations.
Location Crew & Expenses
We consulted with a recommended locations team experienced in the area and included 10 location scout/manager days to cover the two locations. The budget also reflected a $3,500 daily house rental fee. Additionally, we set aside a $1,300 allowance for cleaning, trash removal, and the manager’s kit fees and mileage.
As the specific location was still TBD at the time of budgeting, we were unable to determine permit requirements or whether a motorhome would be necessary for wardrobe, HMU, and restrooms. We included a $1,500 placeholder to cover parking needs for crew, talent, and clients. In past productions, we’ve secured nearby church or school lots for parking and provided shuttle service to the set.
Travel
The photographer and their assistant would be flying in for the tech scout, so we included their airfare and baggage costs. We budgeted lodging for all travelling crew, separated by tech scout and shoot dates.
We also accounted for accommodations for the art department at a local Airbnb to support props prep, along with truck parking. Per diems were included at $75 per day for the eight traveling team members.
Meals
To clarify the catering and craft services’ budget, we itemized expenses by shoot days and the pre-light/load-in day, and also included meals for the crew and client on the tech scout day.
Insurance
We noted insurance at $2,476, which was 1% of the bottom line.
Post Production
We included a $1,000 fee for the photographer to complete a first edit for client review and deliver roughs via web. We also budgeted $400 per image for retouching the requested 35 images, based on an estimated two hours of retouching per image. A TBD line item was included to clarify that any rush retouching requests would be estimated and billed separately.
Initial Results
Within a few days, we heard back from the agency that the plan was looking strong, but additional creative planning and number-crunching were needed before the job was approved.
After another two weeks of creative calls, shot list revisions, and cost updates, the client indicated that the quote would need to be submitted as a firm bid. During a call with the agency, I explained that a firm bid at this stage would be challenging, given the remaining unknowns in the creative plans, final shot list, school location, specific school rooms requiring set dressing, travelling crew needs, and related logistics.
In our Terms & Conditions, the distinction between an estimate and a bid is as follows:
- Estimate: Costs are projected in good faith based on information available at the time. The creator bills actual expenses incurred on the final Invoice(s), which may vary from the original estimate, and the client agrees to cover those actual costs.
- Bid: Once the bottom line is approved, the total cost will not change unless the scope of the project changes.
In simple terms, an estimate reflects: “Based on what we know now, this is what we expect the project to cost. Actual expenses may be higher or lower, and billing will reflect those real costs.” A firm bid means: “As long as the project scope does not change, we will complete the project for this agreed total. If costs come in lower, we will make more money; if they exceed projections, we will make less money.”
In speaking with the photographer, I explained that if a firm bid was required, we would need to refine the shot list and creative plans further, confirm the dates, and significantly increase the production budget to account for the financial risk they’d be assuming. The photographer agreed, and we reconnected with the agency to lock in the creative, schedule, and deliverables.
As the timeline tightened ahead of the shoot, the agency also asked that we include rush retouching fees to accommodate delivery of final images within seven days of the last shoot date. Additionally, they requested a separate quote to cover usage if the images were to be licensed individually in POP and print advertising.
I got to work on a new quote, and decided to increase numbers in a few areas, specifically:
Fees
- Increased photographer pre-production days to account for the significant time spent planning and coordinating with the agency.
- At the agency’s request, we also added a licensing options line, noting an additional $1,125 per image should the client choose to license the work for POP and print advertising use.
Crew
- Added a Third Assistant on pre-light and shoot days.
- Increased Producer days.
Equipment
- Increased equipment costs across all lines.
Styling Crew
- Increased prep days for Wardrobe Stylist and two assistants.
- Increased prep days for the art department team.
Styling Expenses
- Increased wardrobe costs.
- Increased props, expendables, and trucking costs by $2500.
- Increased the location scout/manager prep days.
- Increased location fees.
- Added $750 for permits.
Travel
- Increased the airfare budget to reflect timing considerations and the uncertainty around when the job would be officially awarded.
- Increased mileage, parking, and lodging costs significantly as we shifted to the assumption that all crew members would need to travel.
- Added per diems for all traveling crew.
Meals
- Increased costs to account for the attendance of eight agency/client representatives at the shoot.
Insurance
- Increased to reflect 1% of the updated bottom line.
Post Production
- Added the agency requested rush retouching fees at $400 per image.
Results
The agency initially had a strong reaction to the ~$74,000 cost increase, prompting a call to discuss the budget. I explained that the increase was necessary due to the short turnaround, inability to negotiate deals or discounts, increased production risks, a revised shot list, increased client presence, and rush post-production fees. The agency understood, and the project was awarded within two days, moving into production the following Monday.
The shoot was a major success for all teams. Local teachers and school administrators were thrilled to be a part of such a great, high-profile campaign, and both the agency and client were proud of the results. The photographer was very appreciative of my guidance throughout the process and enjoyed several days of well-deserved rest after the final image delivery.
The resulting work is now being featured in local broadcast advertising spots, on screens at regional collegiate and professional sports stadiums, at rodeos, and across client web and social media platforms.
Follow our Consultants @wonderful_at_work.
Further Reading
Read more articles about Pricing & Negotiating on our blog.
Specialty: Lifestyle Photography