Pricing & Negotiating: Shooting Real Patients For Regional Hospital Advertising

by Craig Oppenheimer Wonderful Machine

Shoot Concept: Portraits of real patients against a seamless background in a studio and environmental portraits at a single location

Licensing: Advertising and Collateral use of eight images for one year, geographically limited to two states in the US

Location:  A studio and a house located in the Northeast

Shoot Days: Two

Photographer: Portraiture specialist based in the Midwest

Agency: Large NY-based agency

Client: Large hospital based in the Northeast

Here is the estimate:

estimate_terms

Creative/Licensing:

The concept for the shoot was pretty straightforward. The agency wanted to photograph four former patients of the hospital in a studio against a seamless background with minimal props, and then photograph four additional patients, each with family members in a single residential environment. While each portrait and scenario would be unique, it was likely that there’d be one image from the studio shoot and one image from the location shoot that would ultimately end up in advertisements, and the rest would be used on the client’s website and in collateral pieces. Based on the geographic limitation of two states and the limited time frame of just one year’s use, I priced the first studio image and first environmental image at $4,000 each, and then priced the rest of the images at $2,000 each. These fees were also based on previous projects I’ve estimated for similar clients, and I had a good sense of what a client like this might be willing to pay. The agency asked us to provide a price for an option to extend the licensing to two years, and I felt that and additional 50% of our fee was appropriate for this extension option.

After coming up with these fees, I checked them against other pricing resources. Getty priced one image around $3,000 for use in a full page print ad for one year, and around $2,500 for use in brochures and in direct mail pieces for one year as well. This didn’t completely cover all of the possible uses that our licensing would cover, and it also didn’t take into account the limited distribution in just two states within the US. Blinkbid priced one image similarly to the combined Getty rate at up to $5,500 for use in advertising and collateral pieces for one year. Fotoquote offered a package for “all advertising and marketing”, and suggested a price of $4,000-$8,000 when the licensing was limited to just a few states (as opposed to around $20,000 for the entire US).

Assistants: The photographer would be traveling in to the location and bringing his first assistant with him. Five days for the first assistant accounted for one travel day there, one scout day, two shoot days, and one travel day home. The second assistant would be hired locally for the two shoot days.

Digital Tech: The tech would also be traveling in for the shoot, and we decided to only charge for their workstation on the shoot days, rather than for all of the travel and shoot days.

Photographer Travel/Pre-Production Days: The photographer would be driving in to the shoot, rather than flying, but the drive was long enough to constitute a full travel day on both ends of the shoot. We also estimated for a full scout day before the shoot.

Equipment: The photographer would be bringing all of his own equipment and we estimated $1,000 per shoot day. This covered his DSLR camera system, strobes and grip equipment  at standard rental rates.

Producer: This accounted for two prep days to wrangle the crew and organize all of the shoot details, two travel days, one scout day, and two shoot days.

Production Assistant: With all of the moving pieces to a shoot like this, we included a PA (who would travel out with the photographer) to be an extra set of hands during the scout and shoot days.

Lodging: We accounted for $200/night, and there would be five crew members traveling in and needing accommodations for four nights.

Studio Rental: We would just need the studio for one day, and I received this quote directly from a studio in the area.

Hair/Makeup Styling: We estimated to have a hair/makeup stylist for the studio shoot day since we’d just be photographing 4 people, and we anticipated them bringing an assistant for the location shoot day since some of those shots would likely be of more than one person, and would therefore require some extra styling.

Wardrobe Styling: We anticipated three shopping days, two shoot days and one return day to obtain wardrobe. The stylist would be bringing an assistant to the shoot days to help organize and prep the clothing.

Prop Styling: We estimated three shopping days to acquire props, two shoot days and one day to return the props, and their assistant would be present on the shoot days as well as one of the shopping days and return day.

Wardrobe and Props: The comps supplied to us were still a bit loose during the estimating process, but through a series of conversations about the project, we determined $350 per person would be adequate for wardrobe (up to 4 people on the first day, and possibly up to 12 people on the second day), and $3,500 would likely cover props in the studio (like chairs and minor environmental items) and at the house (which would already be furnished).

Prop/Wardrobe Van Rental: Since there would likely be a lot of clothing to transport, and since some of the props included furniture for the studio, we anticipated needing a rental van to transport these items. We anticipated needing the van for five days, and that it might cost around $125/day. We then rounded up a bit for fuel costs.

Talent Fees and Vendor Payment Processing/Bookkeeping: While the talent would be provided, they agency asked the photographer to handle their payment. We were told that they wanted to pay each patient $1,000, and that there might be 16 people. We charged $1,000 for the photographer’s time to handle payment and processing.

Catering: We anticipated that there would be 20 people on site during the studio shoot day, and 29 people on the location shoot day, and estimated $55 per person per day for catering. We then rounded up a bit just in case any unanticipated additional client/agency contacts decided to come to the shoot.

Miles, Parking, Meals, Misc.: Four people would be traveling in for the shoot, and we estimated a $50 per diem for each person for the five days they’d be traveling ($1,000). On top of this, I calculated that the mileage for all of these people driving in billed at $.565/mile would be about $900. I then added on $200 for both shoot days and the scout day to account for any additional unforeseen expenses that might come up.

Location Scout Days and Location Fee: The location would be a residential property, but since the requested shooting city was a bit off the beaten path, we anticipated four days for the location scout to find the perfect spot. After speaking with a scout in the area, we determined $2,000 would be more than enough for the type of residential property we hoped to find.

Production RV: In my experience, a production RV has proven to be well worth the money on shoots where a big crew is shooting in a small space. We estimated to have an RV on the one day on location to be used as a hair/makeup/wardrobe staging area and a space for the agency/client to relax and have Wi-Fi if needed.

Housekeeping: I noted that in addition to the talent and releases, the client/agency would also handle all post processing include a drive to transfer the images on at the end of the shoot.

Results: The photographer was awarded the job.

Hindsight: In determining the initial shoot/licensing fee, it is important to consider all of the factors impacting the value to the client and incorporate appropriate “discounts” based on those factors. That’s how you end up with an appropriate number. However, I don’t think duration and volume discounts should necessarily apply to options or extensions. First of all, most of our clients aren’t breaking down fees in the same way we are. Secondly, production expenses need to be factored into the equation to some degree. As we priced it here, exercising the usage extension would increase the bottom line by a mere 10% while increasing the duration of use by 100%. That doesn’t necessarily correlate to a 100% increase in value to the client, but it is almost certainly an increase in value greater than 10%. Whenever possible/appropriate, push for a straight prorate when it comes to usage extensions and options. In hindsight, I think we should have priced the extension at 20k.

If you have any questions, or if you need help estimating or producing a project, please give us a call at (610) 260-0200. We’re available to help with any and all pricing and negotiating needs—from small stock sales to big ad campaigns.

Wonderful Machine

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  1. Been reading them with joy since like two years ago… keep ‘em coming, they educate and give a view on how it works on the top