Back in the halcyon days of 90s Hollywood, when movies were still being cut together on old Steenbeck editing machines, a new independent filmmaker rode into town.

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Robert Rodriguez was just 23 years of age when Columbia Pictures snapped up his debut film ‘El Mariachi’. The film itself was a masterclass in DIY filmmaking, centred on a young Mexican musician who walks into the wrong town at the wrong time. He shot the whole thing with just $7000, mostly sourced from putting himself through medical testing. It grossed over $2 million dollars at the box office.

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On the face of it, the film was an unprecedented financial success. In reality the numbers are deceiving. Once the original cut was given an intense post-production makeover, the sound was remixed and the print was transferred to film, the cost spiralled up to over $200,000. This isn’t counting the millions spent promoting the film and getting the cans out to cinemas across America. In the end, Columbia Pictures were probably lucky to break even.

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What does this tell us about budgeting? That there are always hidden costs with every project. And, cutting costs in one area might have a knock on effect later on down the line. Rodriguez eventually repaid their faith with a roster of box office hits that earned millions of dollars. Unfortunately, in the world of commercials, we don’t often have the luxury of do overs. The budget is the first thing on the mind of any good producer and the last thing they finalise when the production ends. That’s why it’s important to get it right from the start.

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Above and below the line

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“You can make any movie for any amount of money. The question is, how big do you want to compromise?”

‍Alan C. Blomquist - Executive producer

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Above and below the line is industry budgeting lingo used to describe the assets most and least dispensable on a project. This accountancy term defines the two levels of production costs. Above the line is the fees for the ‘talent’ (producers, director, actors) and below the line is everything else. This usually includes the crew, sets, costume department, catering, transport and anything else needed to shoot the movie, not to mention the post-production costs: editing, sound, music, special effects. There is no set way of doing things but between half and two thirds of your budget will often be spent on below the line assets.

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Getting the right ‘above the line’ talent can make or break your ad. Maybe you want a celebrity face to promote your new product. Or, your ‘Go Big’ idea needs a highly skilled director to steer the concept in the right direction. These elements can soon add up and it’s better to get your star players in the game as early as possible. Another key stage of pre-production is locking in all those other elements, from recruiting the various departments (camera, art, makeup etc.) to sourcing the equipment needed to realise the concept (camera, props, sets, lighting etc.). The costing process might incorporate pre-visualization techniques to envision the future shoot and any hidden expenses that might spring up. It’s during this prep period where you can decide how big or small the compromise needs to be.

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With all these elements to consider it might seem like a real mountain to climb. That’s why enlisting a production company to take care of the nuts and bolts of a shoot is essential. At what point do you get the experts on board? As soon as possible. Even if you’ve already fleshed out a killer idea with your in-house creative team, it’s always a good idea to have it stress tested by your third party experts. The stages of budget appraisal will begin at the creative stage right through to the media buy. Knowing what each stage will cost early on will give you a clear path forward for your production and make sure the numbers stay in the black. 

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Negative is the new positive

The power of pessimism is perfect for anyone in charge of a budget. It takes the right mix of worry, doubt and fear to create an accurate budget. It’s a healthy way to approach any large scale project because by imagining the worst you’re already ahead of it. There are always areas where unforeseen changes will impact the bottom line of your production. A negative mindset during this phase will give you positive results when it comes to totaling up your receipts. 

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When it comes to the day of production, there will be no problem too big for a well prepared budget. Those last minute props that the director needs to make the set really pop. The sunkist beachside location you scouted needs a special permit for a film crew. An added day of prep to make sure the set build doesn’t fall down and kill the ‘talent’. Having a built in flexibility will safeguard your production no matter what comes your way. It’s seen as healthy to have an extra 20% stowed away for incidentals during production. It will also help steer it forward whatever problems arise.

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It is the responsibility of the production team to make sure your ad comes in on time and your budget is on target. We have the experience and knowledge to write budgets that are realistic, flexible and ambitious at the same time. From the initial creative ideation through to the final stages of post-production, the cost will be earmarked without any hidden costs or surprises. It’s this open and honest communication with the client that allows us to maximise their investment and exceed all expectations.