AV News 183 - February 2011
And What Are Your Expenses? (Part2)
Maurice Dybeck ARPS
In Part One (Issue 179, Page 14) I discussed expenses relating to one-off visits
to organisations. This time I am looking at what you should consider if you get
drawn into 'a big one' Can you make us a film?
The next financial challenge - and I have been this way quite often - is when
an organisation approaches you, knowing you are good at making things with
a camera and asks you to make 'a film' for them. I use the word film loosely
since, to many of them, an audio-visual production counts as a film.
In practice what we are probably talking about is something like a local
history society who want some of their researches or discoveries put on record.
Or they may just want something to help recruit new members: a 'Promo' as we
say. Assume they have moderate funds for the project but that they probably
have very little idea how much the project could cost them. Some might fear
you will charge the earth while others will glibly think it's just a matter of taking
a few snaps and slamming on a few comments.
My first approach is always to ask them what they want the film FOR. Is it just
a one-off for showing at the AGM (very costly) or are they thinking of having lots
of copies to sell (or give away) to their community. Assuming they want the
latter I then point out that costs can be split into PRODUCTION costs and
COPYING costs. And whereas production costs will be a fixed amount, the
copy costs will vary dramatically depending on how many copies you choose to
order. And since both these costs have to be borne it stands to reason that the
more copies you can decide to order, the greater can be the spread of the
(fixed) production costs.
So, if we had a project costing, overall, £1000 and they only wanted five
copies then the five 'purchasers' would each have to cough up £200 for their
copy. On the other hand if they went for say 200 copies then the overall unit
cost would be something like £7 (that is £5 against the production cost plus say
£2 for the copying.) If they then gasp at the thought of an outlay of £1400 I point
out that if they then sell them all at £10 a copy they will take £2000 and be £600
in profit! (But note the second IF!)
Now how do you work out your production cost? Every project is different and
so all I can offer you is headings to consider. However, my experience is that,
being kind-hearted enthusiasts, the tendency is to get stuck into the actual job
because it is interesting and a challenge and to brush aside some of the harsh
realities of what it is all costing. Nothing wrong in that and we all do it. But this
article is about what it really costs so here goes.
Production Costs
1. Use of equipment - Cost up all your gear, including computers and decide
what proportion of its use relates to this project.
An accountant would say you should also include depreciation.
2. Consumables - In the old days this would be how many reels of film and tape
are you devoting to the project. Nowadays this will be a fairly small expense
but note it, particularly if afterwards you are keeping masters of all the work
done.
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