Things You Should Know If Your Company Wants
To Produce A Video

Do you want “package” price or “piecemeal”?

Package Price
A package price for the entire project is the way most videos are negotiated. On the surface it seems to be the most logical. The client knows exactly how much to budget for, and the production company knows how much money they will have to work with.

The downside for this arrangement is that once the price is agreed on, the two sides can become adversaries instead of partners. The client will naturally try to get as much out of the production as he can, while the production company will then try to maximize its profits. If you choose this route, be sure to have a very clearly written bid with exactly what each side will be responsible for. With this clearly defined bid in hand, there will be no confusion or surprises.

Piece Meal
Another way to produce your video is "piece meal". You can hire your production company by the day, or by the hour. This way, whenever someone is working on your project, you are paying for their time and only the time they are working on your project. Your producer should be able to give you hourly and daily rates and should be able to estimate the total cost for the project according to your needs. The downside to this is that your actual costs for production may be more (or less) than you budgeted for.

What do you want to achieve with this video?
How much do you plan to spend?
Who is the target audience?
Who will write the script?
Will you need professional talent?
What locations are you going to need?
Do you want “package price” or “piecemeal”?
Final Points