Video Production Budget Preparation

Preparing a budget for a video production.

A lot of times when working with clients, I will get the question: "How much will it cost to produce a 10 minute video?" Generally the person asking the question believes that there is a set formula, such as X dollars per minute. There is usually a surprised reaction when they find out that they can't get an estimate without having some idea what the video will contain.

To the client, it seems like a Catch-22, how do they know what the video contain without a production company developing the idea first.

On larger productions this may be the case. The development has its own budget and the estimate for the production is based on the concept coming out of the development stage. But for most corporate videos, all stages of the production fall under a single estimate.

A lot of corporate clients feel as though they are shopping for a car, and refuse to reveal their budget beforehand out of fear that the production company will use the entire budget unnecessarily. The analogy they should be using is that of building a house. It's almost like going to a house builder and saying, I want you to build me a one story house, how much will that cost. You can bet anything the builder will ask "how much do you want to spend?"

There are many variables that determine how much a video will cost. Many questions need to be answered before a budget can be developed. Years ago, I worked with a client who, in the pre-production stages said to me and the creative team, "I can't tell you what I want, but I can tell you what I don't want once I see it." Some times clients do not understand that if they do their homework beforehand, the video production will be a whole lot cheaper in the long run. Making revisions after the video has been produced is a lot more expensive than making revisions on paper.

The best way to prepare a budget for a video is to fully understand what the client expects. As a video producer, it is your job to do everything you can to understand the client expectations and accurately communicate your understanding back to the client. Clear communication and understanding is key.