What to Charge for a Commercial

[Ernest_Acosta]

I am in negotiations to shoot a commercial for a non profit organization. It will be a 30 second commercial. I plan on shooting it HD. As I come from a music video and shorts background. I have no idea what to charge these people. On one hand I know its a non profit organization and I didn't want to break their bank. On the other hand, I know that they get a lot of money and funding from Charitable Organizations. So I don't want to cheat myself. Is there an industry ballpark figure to charge not including the equipment rental? Any thoughts on this will be helpful.

 

[ktfilms]

Just a suggestion....

Maybe budget out the whole production and then add 10-25% on top for your fee? Start your fee on the higher end and use a sliding scale to accommodate if they think it's too high.

Are you producing, directing, DP, editing, etc? Charge more if you're doing every single thing.

I believe that usually a diretor collects on 10% of the final budget. Not sure if that's the standard, but it's what I've read.

Good luck!!!

 

[khmuse]

Since I assume that you want to land this job, you don't want to come in too far from the norm or you might just scare them off. If you way above everyone else, then they will likely pass as they might perceive you as too expensive. Likewise, if you are way below the going rate, they might just assume that you lack the experience to perform. So, rather than guess, consider hiring a commercial producer to attach to the project, they will have the experience to help you prepare a proper bid. There are a lot of things to consider that might not come to mind (union/non-union talent rates, insurance, security, permit fees, bonds, etc).

 

[galt]

If it's your first one, how could you "cheat yourself" by undercharging? Understand what they expect, don't lose money, do your best work, and use this to leverage your way into commercials. Whatever your bill, charge "full rate" and then show a "Special Discount". That keeps you from being locked into low prices later.

 

[psts]

I am in negotiations to shoot a commercial for a non profit organization. It will be a 30 second commercial. I plan on shooting it HD. As I come from a music video and shorts background. I have no idea what to charge these people. On one hand I know its a non profit organization and I didn't want to break their bank. On the other hand, I know that they get a lot of money and funding from Charitable Organizations. So I don't want to cheat myself. Is there an industry ballpark figure to charge not including the equipment rental? Any thoughts on this will be helpful.

One thing I've done that I find works, is to come in to negotiations with a rough script based on the information that they have given you. That way they have a better understanding of what they are getting and they can understand the work involved (somewhat). It's a few hours of work that can be a waste of time if nothing comes through, but even if your price is over the competitions they will feel that you will get the job done. If they can afford it, they would rather spend more and get the job done right.

 

[smithgallTV]

You are right to consider that charities do get money from various sources. All too often people hear the word charity and equate it with $0. That is not true. In fact in some ways they have more money than other businesses. Even the people that work there are trained to think they have no money. You almost want to forget that it is a charity. Its a service business that simply does not give an owner a profit. Sometimes it’s a small service business like a local soup kitchen, sometimes its larger service business like The Red Cross.

If you think about it most small business owners are worse off than charities. They can’t just ask for money, they have to pay taxes and none of their staff will be volunteers. So do not start out thinking that you must discount because they are a charity. Discount if you must because it’s a business opportunity and you are trying to win the business.

However, once you have the business and have made the commercial I would contact every charity within the state and tell them how good you are and how well you work with charities. Because they are a charity other charities will look upon themselves in the same “industry”. Its like if you did car commercials. Other car dealers would assume you already know their business. Good Luck!!