Corporate Video Production – Cost Drivers

When planning a video project knowing the cost drivers of video production will help when comparing quotes from different vendors or in the negotiation process to get a video project at a reasonable cost.

There are ten basic cost drivers for video production that factor into most video projects. Each of these elements drives production costs up or down. For example, if a company wants to use a custom photo rather than a stock photo in a video, additional time and costs are involved. The production company needs to use specialized staff or hire a photographer, models, and location permits – Even if a company internal produces a video, paying close attention to these cost drivers can be beneficial to understanding the essentials to produce a quality online video.

all adding to the production cost.

Basic Cost Drivers for Video Production

  1. Project Management
    • Pre-production planning time
    • Project coordination
  2. Script Development
    • Storyboard
    • Shot list
  3. Talent
    • On-screen Actors
    • Voice over artist
    • Union or non-Union
    • Extras
    • Customers
  4. Video Assets
    • Imagery
      • Stock photos (Royalty free)
      • Licensed photos
      • Custom photography
    • Video
      • Stock video (Royalty free)
      • Licensed video
      • Custom video
    • Illustrations/3d elements
      • Stock illustrations
      • Custom illustrations
      • Purchase 3D models
  5. Special Effects
    • Animations
    • Motion graphics
    • Titles
  6. Location
    • Studio rental
    • Fees and permits
    • Local or travel
    • Building rental
  7. Music
    • Stock music (Royalty free)
    • Custom score
  8. Crew
    • Director
    • Director of Photography (DP)
    • Camera operator
    • Lighting
    • Sound
    • Grip
    • Editor
    • Motion graphics artist/Animator
  9. Video rendering and compression time
  10. Overhead
    • Equipment (Cameras, Lights, Sound, Studio, Computers, Software)
    • Insurance (Liability and Workers Compensation)
    • Rent
When comparing vendor quotes, be sure to look at the line items of each quote. Vendor A might include production value that Vendor B is not including. If a vendor gives a “cost per minute of video” quote, be sure to validate what is included in the production.

Keep in mind that a higher production value equates to a higher video project cost. Good talent can be pricey, but you will notice the difference in how a project managed and in the final video product. Video production companies have different styles and approaches to the art of making videos. Be sure to review previous video projects from potential vendors to be comfortable with the style of their work, but also with those who will manage the video project.

Addiotnal articles:

Corporate Video Production – How Much Will it Cost?  Read full article »

Corporate Video Production – Questions to Narrow the Scope of the Video Project Read full article »

 

Copyright Xcelus 2015 – Article by Todd R. Corbett, CEO, Xcelus, LLC

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Video Production