BidQwik.com
Link to BidQwik.com "About Us"
Using BidPro for Hollywood Film Budgeting

We have received several requests for usage capabilities of BidPro from TV, feature film, documentaries, music videos and commercial developers. Specifically, what dollar amount do they pitch to studios & investors that would provide a tangible return-on-investment (ROI) figure to the financier and still allow profit for the developer.

Typical inputs are costs associated with film crews, writers, talent (plus agency), production, contingency, merchandizing and travel. Typical output results should address work day overtime pay for 10+ hours/day and include labor & material cost/profit, overall profit dollars & margins. And if possible....a sheet detailing each category that can be presented to banks and investors.

Here are the specifics of a potential project (if you find some information not credible please contact me and I will change it accordingly)
Craft Services Labor $7,500 material $60,000
3 Vans - 1 Limo Labor $25,000 material $8,250 
Burden Labor Rate 30% Raw labor rate plus company benefits & insurance
Labor Markup Rate 60%  Yields labor sell price to customer
Material Markup Rate 40%  Yields material sell price to customer
Direct Job Overhead Rate 15%  Applied to raw labor rate - typically executive bonus structure
Parking 50 people $75/day   
Per diem 10 people $35/day   
Mileage 10 people $0.405/mile 80 miles/1 way 
License & Permits $250    
Subcontractor Material Markup 15% Sell price to customer of subcontractor costs
Subcontractor Location Material Tax 7.75% California allows subcontractor material costs to be taxed
Subcontractor Location Labor Tax 0% Some states allow subcontractor labor costs to be taxed
Material Location Sales Tax 7.75% California allows materials to be taxed at 7.75%
Labor Location Sales Tax 0% Some states allow labor costs to be taxed
Non-productive time 1 hr/day/person Hours lost/day/person due to unplanned/unscheduled meetings
Misc Material Cost 10% of Total Material Cost To cover unexpected material expenses
Freight Cost 5% of Total Material Cost To cover unexpected freight charges
Talent 1,2,3 agency bump 10% Talent Agency charge 10% on Actor Pay
bonus structure $20,000 Arbitrary bonus applied to production crew if everything is on schedule (no markup)
Desired Gross Profit Rate 30% Gold standard for any corporation to stay in business and grow
What is the GPM at sell price of: $750,000 ? Sell price minus cost divided by sell price
What is the return-on-investment? Sell price minus cost divided by cost
Raw Labor Breakout Labor Task Material Costs Subcontractor Summary 1 Summary 2 Summary 3
Cost Chart Margins Desired 30% GPM Sell $750,000 Compare choose Item 4 Item 4
Customer Output Trakker SW input Time & Material Rate
So what does all this mean?
Based on BidPro, using 16 people this project will last about 21 days (20.9) and utilize 3340 man-hours.
Total cost of items: $593,747.88 Material $231,825 / Labor $114,623.63/ Other $131,549.25 / Subcontractor $115,750
Sell price of project: $750,000 Expected profit is $127,857.50
  Expected ROI is 21.5%
  Expected Gross Profit Margin is 17.7%
Will an investor (bank or financier) depart with their $MONEY$ based on these profit expectations?? I think.....YES
return to FAQ listing
return to companies using product

©Copyright 2022 BIDQWIK™.COM
All Rights Reserved
No use of information without express written permission|
from Peter Buitenhek