help duplication dvd costs promo

A

aalleexx

Veteran
I have a question regarding promos, I landed a gig that is a coorporate video that lasts 3 min long, now I have done these before but this time they want me to handle the duplication of the dvd's which they want 200 by the way
anyway in the contract that I am going to give them states that the duplication costs for the dvd are completely separate from my production rate, day rate, mileage etc. and they want me to include this for one complete payment
now my issue is that say I am charging 7 grand out total for my services and the duplication costs 2 grand if I bill them 9 grand I am paying taxes on the whole 9 grand, how is this handled, I have done this before is just that before I just turn in one dvd and call it a day but this time they want me to include everything into one payment and that is a tax issue as I see it because uncle sam is going to tax my production company on the whole amount, should I set the final price higher to offset the tax hit on the dvd's

thanks

I am in texas by the way and I am getting the dvd's made through
http://www.discmakers.com
 
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technically your paying taxes twice sales tax from the replication folks and income tax on the same thing from the GOV. Itemize your taxes at the end of the year and write off the replication. Or just charge a little more to offset the cost.
 
there is no tax when buying from diskmakers.com just duplication cost and shipping, I did not see any tax added on the quote
 
the write-off sounds like a good idea since I am going to have proof for uncle sam on what I paid to get the dvd's duplicated and that I did not profit from it
 
aalleexx, you should also mark up the duplication cost as most business does. You will be responsible for the final product and if the company does not like what they get YOU will be the one who has to deal with the replicator to get it right. I would charge at least a 10% mark-up on duplication cost for this purpose.
Good Luck
 
can you eleborae bit more please regarding the mark up, are you saying this becaue of tax issues or just as a mark up for the hassle?

thanks

legend of the steelstring said:
aalleexx, you should also mark up the duplication cost as most business does. You will be responsible for the final product and if the company does not like what they get YOU will be the one who has to deal with the replicator to get it right. I would charge at least a 10% mark-up on duplication cost for this purpose.
Good Luck
Click to expand...
 
I'm saying this as a way of doing business.....
The tax thing is a non-issue as your client the end user should pay any taxes on dvd's
and this is not income for you or your company (that you would be taxed on)
To get back to the other part of question Think about your mechanic when he works on your car any parts he buys he marks up the cost to you. I worked in cd duplication for many years any time I had to out-source large orders I marked up the cost to client.
If you work with the same duplicator you should be able to set up a vendor account where you get a discount off retail price. disc maker might not offer this as they are more geared to end users. On a side note odds are you will have some problems in the duplication process you would not believe the headaches that can occur and guess what you have to fix them all for your client. There was a time that I didn't want to deal with the headaches of large order duplication so I marked my prices up so I high I thought my clients would go else where guess what..... They didn't they knew I would deliver the product they expected with-out them having to deal with it. You are in business DO NOT give your services away. They want you to do this for them for a reason and I know they will pay you for it...
Just my 2 cents
 
Well, it looks like you have a pretty hefty markup on your DVD-R's considering bulk duplicated DVD-Rs including 3-color on disc printing with discmakers ranges between $204 for 100 and $522 for 300. When ordering on-line I have never payed sales tax with discmakers until last year when they openned an office in Georgia. My understanding is if they don't have an office in your state, no sales tax. If they do then it won't amount to much.

On the other hand if you are preparing complicated artwork or having them do it for on disc printing and or cases, shrinkwrap etc then your $2K amount may be a little low.
 
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all those figures are for illustration purposes, the actual numbers I consider to be personal :)

thanks for the input
 
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