Monday, April 11, 2011

How to Negotiate Best Values from a Video Production Company By Victor Van Rees


Like everyone, you want the best price for the best service and best quality.  How do you make certain the responses to your Request for Quotation serve you well? Here are a few inside secrets from an experienced vendor.

Be clear and explicit in your RFQ: If your bidders have to guess on certain requirements, they will have to include some “pad” in their pricing to cover unspecified elements.  For any variables (shoot days or locations, number of projects involved or type/amount of deliverables), provide a set number.  Although it may not be the exact details you will eventually have, giving a set number allows you to compare apples to apples. Another way to combat vagueness is to ask for additional options (a second shoot day, for example).
If you require music in the soundtrack, stipulate the number of cuts. Include specifications for graphics and/or animation for the opening and transition scenes. The more information you specify, the more accurate a vendor’s quote will be, and the less “pad” the bidder will include in their pricing.

Be flexible with your timeline: If you dictate a tight schedule and deadline, vendors may not be able to give you their best price. Every company has peaks and valleys in their schedule. From a pricing standpoint, allowing them to take advantage of ‘slow’ time with your production can avoid overtime and freelance costs. From a quality standpoint, a flexible schedule will let them utilize preferred editors or crews for your job, who might not be available on short notice.

Look deeper: Don’t just check references. You’ve asked for three references, and you plan to send them confirmation emails, maybe even a questionnaire. Call them. Ask the references if your prospective vendor produced projects similar in style and scope as yours. Ask the references how flexible the vendor was, how creative or eager to please.  Don’t just check on the references, but ask for client contact information for each sample video submitted. You might find the samples look great, but the vendor only provided a portion of the work, or - heaven-forbid - went over budget.  When you view samples, consider the body of work. You may not see a perfect match to your project goals, but you should analyze samples for creativity, polish, storytelling ability, graphics approach, pacing, style and professionalism.

Add a step or two: Take time to make your decision. Allow for time to receive and respond to questions. Consider your review of proposals to be the first step in the bidding process. From your initial selection process, ask for best and final offers from the best three vendors. Ensure you include more specifics about the requirements when requesting the best and final offers. You’ll learn quite a bit from the initial submission, guiding you in fine-tuning your requirements. Consider an oral presentation from the finalists. Meeting face to face with a vendor can tell you a lot about their business sense, professionalism, creativity, and how well you might get along with them. Eliciting answers about approach, or suggestions for value-added enhancements to the project will foster a better production. Plus, you can learn the vendors’ thought processes. Think about scheduling the oral presentation at the vendors’ facility. You’ll get a look at how they operate, meet their entire staff and view their production center.  Remember, you are hiring a company, not just the individual you’ve been negotiating with. If there is only a single edit suite, or only one producer, or a small support staff, how likely is that vendor able to meet your schedule if illness strikes or another big job comes in.

Part of your negotiation is deciding the best product for the best price. It is a balance between both quality and cost. Don’t forsake one for the other. A bit of homework and planning can provide the best of both.