When estimating a job, many photographers focus on presenting their work as a bargain: coming in well under budget and being the low bidder. Wrong move! (Although a temptation, especially in a slow economy.)
What's the right move? Estimating your jobs in a detailed fashion while wisely using the allotted budget is what will help you stand out amongst other bidders. Smart estimating builds confidence with a potential client and demonstrates financial savvy, high standards and concern that the job be done right. Read on for the lowdown on today's best estimating practices.
Right off the Bat...
You can get the process off to a good start by being detail-focused from the very first phone call. When you get the call to submit an estimate for an upcoming job, keep your ears open and listen to all the details you're given. Jot them down so you know the questions you need to ask - and avoid having to ask the caller to repeat any details down the road.
Once the potential client lays out the parameters of the job, the next step is qualifying them in order to properly set your creative fee for the project. (Yes: you read right! Qualifying is a two-way process, and you aren't the only party who's being assessed here.) Qualifying the client means understanding who you are dealing with. For example, is it:
- A large advertising agency?
- A design firm?
- A magazine?
- A public relations agency?
- A not-for-profit?
- A record label?
- A small business?
This is important information to have upfront; knowing what sort of outfit you're dealing with will ascertain how generous the budget is likely to be.
Who Pays What...and Why?
When setting your creative fee, several factors may come into play:
Is the client looking at you because you would bring a unique style to the job? If so, that gives you a distinct advantage because you have a very specific vision: congratulations - you're in a niche of your own.
Another 'need to know' is the difficulty of the production; is this going to be straightforward or are there special technical challenges?
What Do You Bring to the Table?
Most creative professionals have strengths and unique capabilities that they forget to emphasize when faced with an unexpected inquiry. Don't forget to assess yourself on the following:
- How long have you been in the business?
- Do you have a strong team to pull off a flawless production?
- Do you have a unique style or technique that sets you apart?
- Do you specialize in subject matter or media that will benefit this job?
How to Structure Your Quote
Many photographers wrap the creative fee and usage together as a single item; as a former photo editor I recommend breaking them out separately.This is because clients often want to know precisely how much they are paying for usage/licensing. It's logical, because if this cost increases, they are readily aware of the change.
When defining usage consider the following:
What is the media use? For example - will your work be used for:
- Direct mail?
- Packaging?
- Billboards?
- Point of sale displays?
Will it appear as:
- A consumer ad?
- In trade publications?
Is it for:
- Single use?
- Multiple use?
Will your images appear on :
- An international basis?
- A national basis?
- A state basis?
- A regional basis?
For how long does the client intend to use the image:
- Six months?
- One year?
- Two years?
- Three years?
- ...or for an unlimited timeframe?
Use What You're Given
Most of the time, especially for advertising clients, you will receive layouts or comps from your potential client that will help you to give accurate production costs.
This vital information - such as how many images the potential client needs! - allows you to properly budget for the project. Does the client want a catalog of images, a look book, a spread, or a different format altogether? If it's not clear...ASK!
Spell out the precise scope of the project - including the number of images - on your estimate.
Never Be Afraid to Ask the Obvious Questions
In order to estimate the job, you must understand the creative direction. Will it be a location or studio shoot? If studio, will it be local or do you need to travel for the talent, client, or products? If a location shoot is involved, will you be working in your backyard (and is a great backyard part of the reason you're in the running?)....or do you need to travel?
For travel days, a general rule of thumb is that you should charge half your creative fee.
Also good to know: will the client be booking travel plans and paying those expenses, or will you? Is the location already earmarked by the client, or will you or a locations professional be scouting and booking?
And don't forget to wonder aloud: is talent needed in the shots? If so, will the client be doing the casting or you? Does the client want a comp card/online casting, or an in-person casting? Will the client be present during casting or will the info be uploaded to web galleries?
Don't be afraid to ask probing questions. The complexity of the shoot will determine who you'll need to bring in: hair, makeup, wardrobe, assistants, and catering, for example. If wardrobe is required, do you have a wardrobe budget? Will the client be providing props? If not, does the client have a budget for the props and a prop stylist?
After you have thought through your production, think through your workflow needs. What kind of lighting and equipment will you need? Will you be shooting digital or film? (A few of you do still shoot film!) Will you need a digital tech? If so will he/she be doing all the file conversions and burning the job to a CD or hard drive? Maybe your estimate will include some light retouching on set. Will you be doing the post-production on the job? Check with your client before the job begins, so you are on the same page with file delivery and workflow.
Note: always try to have the talent be billed directly to the client, so that you don't have to worry about floating any of those costs.
Is a Budget Pre-Established? Get the Goods
On some jobs the client will let you know upfront what budget they are working with. If that is the case,"back into" the estimate by determining all the production expenses and then see where you stand with the budget. At that point, you know what is left for your creative fee and usage. You'll also be able to assess if the job is worth doing.
Share the Load
If the budget allows, bring in a producer or your agent in on the bidding process. A good producer will take the layouts and provide you a good detailed estimate along with some additional questions. You'll likely maintain a team of people you like to work with - however, a producer can make recommendations.
Use the Tools of the Trade
There are several different software options on the market today, to help you format your estimates. I recommend Blinkbid; it's both an estimating and an invoicing tool for creative professionals. To help you determine the hard numbers, try http://www.cradocfotosoftware.com/. Personally I find the numbers a bit high, but the software offers a feature which allows you to see your usage at a lower percent. I suggest dropping it by 15% and seeing where the numbers come in.
Usage remains difficult, because there really is no formula. You just have to feel it out, but remember your photography support network can always be helpful. Photography organizations such as the APA, ASMP or EP may provide additional direction depending on your needs.
It's Not All About the Bottom Line
Remember: if the job isn't particularly profitable or perhaps even a money-loser, you may still have other reasons to stay in the game:
- Does the client represent a good relationship-building opportunity?
- If the job is editorial, will you get good credit lines that could lead to additional work?
- Does your licensing give you the option to sell your images in stock?
- Is this a not-for-profit "love job" where you can perhaps claim a tax receipt for your expenses, or get a warm fuzzy feeling from having helped a cause you believe in? (Not to mention, a testimonial for your website!)
Sweat the Details
So you've done the Q and A...now remember to ask the client for their deadline for all quotes. And don't come in late! Usually that timeframe requires a quick turn around. Don't forget to include all your terms and conditions.
And Once the Job is Yours?
Congratulations! Now get a signed estimate and, depending on the client, between 50% and 100% of your production costs five business days before starting the job. (This step is important, because you usually need to pay your crew and all other out-of-pocket expenses within a 30-day pay period.)
Once you receive confirmation that you've won the job, production begins. If you have a producer he/she will be doing all the scheduling of the shot list, booking and confirming all talent, crew, and catering. Don't forget to ask if any of the crew or clients have any dietary restrictions. Get a solid headcount from the client, so you can add everyone attending the shoot into your catering numbers.
The producer or the photographer should make a production folder including shot list, contact information for all the crew and client, and directions to hotel, airport, and shoot locations if needed. If the client or shoot is out of town, a nice added touch is offering a list of recommended restaurants and things to do if you have time. Details count and make you stand out. Remember relationship building goes along way.
Knowledge Is Power (or at least better marketing)
To help plan future marketing, ask the potential client, at some point in the estimate process, how he or she found you - through the internet, a word-of-mouth referral, your representative, source book or other source. That way, you can track exactly what marketing efforts are working for you.
An Afterword
Remember that your estimate is going to say a lot about you, so take some time to get it right. Avoid giving "ballpark estimates" which only hurt you down the line. Show your client that you know exactly what it's going to take to do their job by providing a thorough estimate. This will help your potential client figure out if you are the best person for the job, and you can determine whether this will be profitable for your own business. And don't forget to ask a lot of questions in your initial phone call/email. Good estimates take time, so the more info you have upfront, the more quickly you can evaluate whether this is a good way to spend your time or not.
So get out there and start estimating. If you have a story, be sure to share it at marketing@adbase.com.