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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 |
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to FAQ listing |
|
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