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How Video Production is Budgeted
While costs for video production can be roughly estimated as a cost 'per finished minute', generally they are actually billed at hourly or daily rates.
The challenge, and something that can only be learned through experience, is in properly estimating the amount of work which will be required.
Cost overruns are never a good thing but, with a proper planning, should not become an issue.
Getting Started
A client will ideally first determine their maximum budget for the project, so that the production company may work backwards from there to propose an approach. For instance, if the budget is limited it may mean restricting filming to a single day, whereas if the budget is quite high then 'production value' may be added in production or post-production.
Inversely, if given a script or a detailed scope of the project, a producer should be able to estimate costs with reasonable accuracy. This works well if you are still in the budgeting phase of a project.
Pre-Production
Any planning and project management work which is done before and throughout production will typically be charged as an hourly fee. This includes story-boarding, script-writing, and generally any other work done by the producer.
In the film industry, this will be referred to as 'above-the-line' costs, although for our purposes we would exclude fees for actors and any costs directly associated with filming.
Production
Production includes any filming that takes place by our crew on location or in our video production studio.
Occasionally, projects don't require production at all, when existing footage, stock footage or photos, or even just graphics are being used to tell a story.
Filming is typically charged by the day, with discounts given on labour for half-days. Crew, equipment, studio or location rentals, travel costs, and fees for on-screen talent may all be factors.
Therefore, determining the number of days required for filming is the first step in estimating production costs.
Post-Production
Most post-production work, including video editing, motion graphics and 3D is charged by the hour. 
While the length of the video is less of a factor during filming, it is very useful in estimating costs for editing.
We will also consider the complexity and pacing of the video (determined by the intended style of the video), as faster cuts and complex motion graphics take longer to produce.
Costs for a professional voice-over, the creation of subtitles and foreign translations, and any deliverables such as tapes & DVD's are all considered here.
Comparing Quotes
Since hourly and daily rates tend to be fairly consistent within the industry, when comparing proposals from several production companies you may find a difference in price based solely on the scope of the project having been interpreted differently by other producers.
Be sure that your expectations match what is proposed and that the company has the experience to properly estimate these costs based on a proven track record to avoid any surprises once the project is complete.
About Basetwo Media
Basetwo Media is a Vancouver video production company specializing in promotional, educational & training videos and event videography. We help businesses communicate using the power of video.
