Tips for Creating a Winning Photography Bid
Posted August 12th, 2011 by Guest Blogger
Please welcome Angela Mateus, our first guest blogger. She’s a subject matter expert with over 14 years experience who’s offered to share some of her wisdom with us. Learn more about Angela.
Have you ever wondered where to buy the book “How to Price Commercial Photography Jobs”? Yeah, me too. After years in the commercial photography business, and countless bids under my belt, only one-thing remains constant…no two bid requests are alike. Putting a bid together for a client can be a taxing process. So before going into the details of a winning photography bid there are a few things to consider that can help the process along.
Carpe Per Diem
Knowing your cost of doing business is important for any size company. As a photo consultant, producer and a former rep, I learned that having a grasp on your cost of doing business can help focus marketing efforts so that you are pursuing clients that are not only appropriate to your talents but also to your pocket book. Your cost of doing business also serves as a great foundation for knowing when to walk away from a difficult negotiation.
We once had a large, national client who began the negotiations boasting about how their company had exceeded all of their profit margins in the first quarter of 2010, then attempt to whittle down our fees in all subsequent conversations and have us compete with a photographer with no commercial experience. Since we knew what we were able and willing to charge in order to keep our photographer’s business viable, we walked away from that project without looking back.
Dig Deep
Okay, so here is where things get personal. In addition to knowing your cost of doing business (here’s a handy online calculator to help you figure it out), you also need to ask yourself if you intend on playing fair. True, there is no little black book, but if you do your research and tap into all of the publications and association resources out there, you will begin to wrap your head around what your peers are charging for their licensing fees. Of course, there will always be someone who will bid a job on the cheap, undermining the entire market. So you have to ask yourself if you want to be “that photographer.”
At the Bargaining Table
We had a client once share that our photographer was their first choice but wanted to know if he might consider reducing his fees. We addressed this by offering to have the photographer take portraits of three members of the executive team for internal use. The executive team was available for a very limited window and no time was taken away from the original job. The three additional, non-commercial shots only required the photographer arrive one hour earlier, but not work beyond ten hours. In the end, all of the client’s needs were met and the photographer did not have to compromise his overall fees. The perceived result by the client was that the photographer was flexible and took the client’s budgetary considerations seriously.
The moral of the story is know yourself and what you bring to the table. Know what your market can bear and have comebacks that add value to your bid should a client allude that price is the driving factor in awarding a job.
Ready to Dive In? Time to Open Blinkbid
Now that we have established some basic parameters for creating a bid let’s get our feet wet. I have found Blinkbid to be an invaluable resource when developing a bid.
When you open a new job in Blinkbid think of it as a blank slate. Be thorough when entering your job description. Many clients provide comprehensive bid specs that you can copy and paste into your job description and tweak as needed. If you do not receive any formal specs do not be afraid to ask your client questions that clearly define the scope of work (number of locations, number of models, client’s expectations on number of shoot days, etc.).
When your client signs off on your bid they are agreeing to the job description as written. If they add or make changes to the job description at any point, be sure to capture the changes in writing. Even better, if time permits, revise your bid so that your client can officially sign off on the changes.
I have had clients question additional costs on our final invoice after files had been delivered. Fortunately, we were able to provide written documentation in the form of a signed bid or emailed changes, making it impossible for them to contest the additional expenses.
Your job description should not be taken lightly. In many instances it provides added insurance so that you are not taken advantage of.
The Unlimited Usage for an Unlimited Time Worldwide Request
Many of us have recently been faced with an increasing number of requests to provide Unlimited Usage for an Unlimited Time (UUUT) Worldwide. I have discovered that one basis for these requests are due to the internal hassle of having to manage the rights of every job an agency produces.
Having been in that role, I can appreciate how cumbersome a task it can be, especially when you are trying to keep track of what a sales team in another state is doing with a vast library of images. I am not an advocate for issuing unlimited rights. However, as a rep I have run into many different scenarios.
I have had instances, when faced with a request for UUUT by a client where we negotiated hard to get the photographer a rate they could live with. I have also represented photographers who would never entertain working with clients that required them to sign all of their image rights away regardless of how big the job or the brand.
Of course, I have also worked with others who bid on and were awarded jobs requiring UUUT which allowed the photographer to produce portfolio images worthy of competing for bigger clients and brands in the future.
It’s vital to remember that when you agree to a UUUT license, understand that you are relinquishing any leverage you might have over those images later on. A client may say they do not intend to use the images for out of home advertising (OOH) only to see the photo plastered on a huge billboard. The media buy on a billboard is not cheap. My thinking is, if a client can afford the media buy, they can afford to negotiate the additional licensing rights with the photographer.
If the licensing/usage terms of a project are not outlined by a client, do your best to balance a client’s licensing needs with fees that are fair, not only to you, but also to the industry and community you are inextricably linked to.
One way to create leverage is by limiting the work delivered. You are not obligated to deliver every frame you took. Narrow your selects by being precise in your editing process.
The license I am using for demonstration provides only limited rights. These usage rights were outlined and requested by an actual, national in-house corporate client. The original bid request asked only for the photographer’s fees and expenses. However, for the purpose of this post I have included applicable production costs. These are real-world numbers and names have been changed for privacy purposes. These rates are based on a job in San Francisco. The region or city in which you are bidding is crucial. For instance, I happen to know that stylists in Los Angeles make $250-$300 more per day than stylists in Denver. So be sure to know your market.
Estimate Terms
In the example above, take note of the statement, “All rights not specifically granted in writing, including copyright, remain the exclusive property of Noah Max Photography, Inc.” This is a friendly reminder to your client that you maintain the copyright.
Another friendly reminder should be included in your Terms & Conditions. There are clients who request a full rights transfer. I do not recommend transferring all rights. Be sure to formally copyright your images, maintaining some leverage should your images appear somewhere they were not meant to.
We once negotiated a license that did not include broadcast usage, only to have the images appear on television. Based on the actual schedule of unauthorized use, the photographer was able to get an additional $15,750 in fees. In the interest of maintaining an ongoing relationship, we elected not to gouge our client because they were ready and willing to pay for their wrongdoing.
Let’s Work on the Estimate
Before jumping in, be sure to give some thought to the structure of your bid and which line items come first, second and so on. I find it is a personal preference, but take into consideration the flow of your bid and how your client will most easily understand it.
Time Is Money
When considering your fees, remember that your time is money. Meaning, if a client asks you to participate in a tech scout you should charge for your time, as this is an opportunity you could have been shooting for another client.
Likewise, you should be compensated for the time you spend processing your images, just as you once would have charged the client for the expenses incurred by processing film at the lab. The fees for such services are negotiable but be sure to include them so you have a starting point to bargain with.
In this sample bid, the client informed us that they were comfortable with our estimated fees and costs since they were comparable to what they had been quoted in the past. Since not all clients will give you feedback on how your pricing compares with other bids they have received, it is your responsibility to research the market and ask the proper questions.
Crew Costs Vary by Market
Clients often have their own ideas about what production costs should be. However, a good producer will know the rates for your market (i.e. Los Angeles, New York, Chicago, Salt Lake City, etc.) and will be able to compare estimates from vendors you wish to work with. Since a 10% variance is typical between an estimate and actual costs, it is always better to leave a little wiggle room. It is never ideal to come in over your estimate by several hundred or several thousand dollars and have to provide an explanation to your client, unless of, course the additional costs were previously agreed to, preferably in writing. It is better to come in under budget or have accounted for unforeseen costs (i.e. special scrim, etc.). Clients do not like to be asked for more money in the middle of a job.
Bill Talent Directly to the Client
Whenever possible, have the talent fees billed directly to the client so that you are not carrying the liability of the talent’s usage fees. Clarify who will be paying the talent fees beforehand so that you can designate this in your final version of your Blinkbid bid.
Don’t Forget the Sales Tax
Determine in advance how you will deliver final files. I know a few Los Angeles-based photographers who have been hit with sales tax penalties because of the way they delivered files. Be sure to charge sales tax when appropriate. And then be sure to pay your sales tax. I am no tax expert so please be sure to consult with one.
Your Winning Bid Is Ready
The goal with the final bid (view the example above as a final bid [PDF]) is to instill confidence in your client that you know what the heck you are doing. There is no exact science to establishing your fees for a commercial shoot, but there is the photo community, many associations and industry experts available to you. Although, there are a few software programs available to assist you, keep in mind software can’t take into account all of the subtle nuances that come with each client, company and market – and most general business invoicing software doesn’t even come close to understanding all the facets of a photography bid.
So the next time a client calls at 9am requesting a bid by noon, ask yourself if you have done all of your research and soul searched your bottom line. Then, open Blinkbid and get that estimate done.
About Guest Blogger Angela Mateus
Angela Mateus holds a B.A. in Communications & Film and has been working in the commercial photo and print industries since 1997. She has extensive experience working with top talent and in the very best studios in L.A. and New York. Currently, Angela heads up the Artists Creative Agency. Noticing that the majority of photographers were marketing themselves with the vast promotional tools and resources available at their fingertips, Angela decided to turn her focus to photo consulting. She has begun putting on workshops and seminars and working with shooters of all styles and levels of experience to support them in the creation of a well edited online or printed portfolio or in developing a strategy for focusing their marketing efforts to the most appropriate clients.
Great article. Thanks for the tips!
Good Article – the only thing you didnt cover is the production costs should either be billed to the client or a markup should be made by the photographer for outlaying these costs…
Marc
Great discussion point Marc. Our terms & conditions stated that all production expenses be paid in advance although actual expenses will be billed. The idea in this case was that the photographer would not be out of pocket (as long as there were no major additions or changes to the SOW). We were also aware that any ‘potential’ mark-ups would have to come in the form of shrewd negotiations with our crew members and vendors on the back end (while paying them a fair rate). This client is quite savvy with regards to production costs, and despite what was once a common practice in our industry to mark up all production expenses we find ourselves using discretion more and more based on the client, the budget, the magnitude of the job etc. Yet, we make sure the photographer or the producer gets paid for his/her time and resources to juggle the production costs. Since no two bids are usually alike I’m sure there are other points that could have been captured in this post as well but many thanks for bringing this tip to the attention of other readers.
Relating to the above, I’m hearing that some large agencies are now stating they will only pay 75% of the Production Costs as an advance, expecting the photographer to carry the additional 25% of the production costs till the final invoice is paid. As these clients also expect to see copies of receipts, this is creating a very unstable position for the photographer to either bury costs, add a mark-up (which the client might contest), add monies to their fees or be a bank for the agency. Have you heard of this and I’m wondering how you would deal with this situation?
Hello Nick,
Sorry for the delay in picking up on your message. I don’t get alerted when someone leaves a comment and only caught your post the other day.
Anyhow, yes it is true that the landscape of our industry has changed. More and more we are asked, or it is assumed, that we will carry costs. Much of how I proceed(-ed) with a job depends on who the client is or the photographer’s financial situation.
In addition to clients trying to assume that a producer, stylist or photographer will carry costs [that were once reimbursed in advance], we are now having to wait between 45 – 60 days to get paid.
Here are a few suggestions:
1) request both an advance on production costs along with an advance on fees. We have been successful in this. Then you have a little more wiggle room.
2) Include a “mark up” in your bid but then offer a discount (that reduces the overall bid by the amount of the mark up) if the client agrees to pay all expenses and/or fees in advance. In this day and age we need to be as smart or smarter than our clients. When a large national client can put off paying you for 60 days, just like he does one of his vendors who has millions in assets, then it becomes imperative to make sure you play the money game just as astutely.
3) Choose your clients wisely. Our guts can sometimes steer us wrong, but trust it as much as you can. When any red flags go up as to whether a client can be trusted to pay an advance, or pay promptly, be prepared to either walk away or hold your line.
4) My post on building a winning bid talks about soul searching your bottom line. Know there is almost always going to be someone who will come in and do it cheaper or agree to carry the cost on a $50k+ production budget. I personally have gotten to a point in my career where I simply walk away from deals that just don’t make sense…either because the client is too difficult or questions every single line item to the point of absurdity. Does it mean I sometimes have no work, yes it does. But it also means I am running my business with a clear conscious and in the way I had intended. Often times it works out for the best because where one door closes another opens. So I firmly believe the question of carrying costs is one only the photographer and/or his rep can answer together.
5) We are all running businesses to make money, the same as the client, so know they are often receptive to this logic. Know your worth and own it. Never be afraid to negotiate what you want if you have established specific parameters on how you prefer to do business. A client is a client is a client. They are not your business manager. So don’t let them walk all over you. Negotiations can be done with a smile and diplomatically. Many photographers are afraid to negotiate or assert a particular need because they think it’s too confrontational or that a client won’t hire them again if they question the client or act contrary to a client. This is simply not the case. You’d be surprised how often this actually creates increased respect and loyalty. Client’s are people too…they often only hear what they want to hear and it can sometimes be refreshing to get a different response.
All the best with your future deals,
Angela
P.S. An amendment to the last sentence in my previous post. It should have read, “Client’s are people too…they often only hear what vendors think they want to hear and it can sometimes be refreshing to get a different response.”
Nick,
There’s a great dialogue taking place on the Producer’s Talk network on LinkedIn (http://www.linkedin.com/groupItem?view=&gid=1699977&type=member&item=70918208).
Another option which is mentioned via this link and which I have had to resort to, is reminding the client that they don’t have rights to the images/footage until the final invoice is paid (of course you have to make sure you back this up in your terms as well). Essentially, you can use the copyright statutes to your favor.
Best,
Angela