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(Copyright 2005)

Most Film Directors have elected to stay away from film budgets
and production costs. The heavy grinding SHOULD be left to
accountants - but, let’s lay it on the table:

The Film Director is at the helm of a big money-burning machine.
It is the Film Director’s job to produce his/her vision of the
script - on time and on budget. At his service is a team of film
production experts (the Line Producer, Unit Production Manager,
the AD team, Production Accountant, etc.) all there to assist
the Film Director to do just that.

Film Directors make it their business to understand the basic
functions of on-set filmmaking, without being able to fully
light a set, or operate a crane, or focus a steadicam. In the
same spirit, the Film Director must understand the basics of
Budgeting and the extremely important Weekly Cost Reporting
process. Every creative decision involves money. It’s only good
sense to learn to translate creative ideas into costs.

Experienced Directors know of The Weekly Cost Report. If you’re
not yet familiar with it, let me introduce it to you:

The Weekly Cost Report informs all Producers, Studio Executives
and Financiers of the costs you’re expending and how those costs
compare to the Approved Budget. If you are unable to challenge,
or defend, the conclusions made by those who read that financial
‘Report Card’ (that is, those who hold the purse strings) your
ability to control your career is significantly weakened.

Find a comfort level where you can, at the very least, know what
to ask during the Budgeting phase, and have a good understanding
of how you can trade-off one cost overrun with a cost savings in
another area. Know how to formulate general concepts of trading
off costs to arrive at your vision and you’ll impress the money
belts off the Studio Executives.

Picture the following scenario: You’re the Film Director of an
Independent Film Production. You’ve shot the exteriors called
for in the script and you’ve seen the dailies; however, you KNOW
that there’s a better shot of that exterior in Oklahoma that
would give the perfect hook to the opening of your film.

You know that you can convince the producers of this on a
creative plane. But, you also know that most producers will
shudder at the task of dropping that bombshell on the
Financiers/Bonding Company that you need to dip into the closely
guarded Contingency funds. (Oh, did I tell you that we’re going
to Okl…)

1. How do you pose solutions to those added costs?

2. What’s the right way to approach the game of cost trade-offs?

3. How do you defend those cost trade-offs?

It’s always going to be a challenge to present this kind of
choice - but, a very doable challenge if you know how to
translate your needs to cost trade-off’s by using my Walk The
Talk ideas.

Usual Way: As the Film Director you sincerely express your view
that the Oklahoma shot would be a perfect opening for the movie.
What kind of response do you think you’ll get? Here’s the most
likely, from my experience:

Film Producer/Bonding Company Rep - This will put us over-budget
by $150,000. I’ll talk to the… ‘whoever’ - (it’s a stall for
sure).

Walk The Talk Way Alternative: Film Director - The cost of
shooting 1 day of exteriors will not require a full crew in
Oklahoma. I’ve called the Film Commission there (see my web site
for internet links to all Film Commissions and major Unions) and
they have assured me that there are plenty of local crew
available to work at a very decent rate. - I estimate it should
cost about 1/2 of your estimate, say about $75,000 to give us a
bit more than we absolutely need. I can get that back over the
next 5 days here in New York. (Note: you’ll need to pick-up a
copy of my Ebook to see how I arrived at the $75,000 figure -
see Figure 17.2, Table 3) - You see, I’ve rehearsed the next
five days with my very experienced cast and there’s no way that
we can’t complete the scenes scheduled in 10 hours a day instead
of the budgeted 13 hours a day. And, as you all know, that last
2 hours in New York costs about $10,000 a day (see Figure 15.1
in my book).

Alternative: Bonding Company Representative - Oh. Have the
accountant make a schedule of the costs and we can check them.
(That’s a Financier’s last stand - it’s up to the accountant to
verify your estimates.)

You get the drift. You are simply applying a cost trade-off
technique in the same technical way as you would use focal
points, storyboards, crane shots, etc. You are ‘Directing The
Money’; the money isn’t Directing you.

Some Directors, through the school-of-hard-knocks, have
developed a ‘knack’ for conceptually streaming their creative
ideas through a ‘what’s the cost?’ process. But that process is
all too often tainted with blame on ‘the blue suits’ and ‘the
money guys’ and ‘all they’re interested in is the money’, etc.
It’s also often based on misinformation, biased toward a
predetermined decision. Take my word for it; unless you, as the
Film Director, can be familiar enough with the language of money
in film production, you’re up the proverbial creek.

You, as the Film Director, are at the helm of a money burning
machine. The best way to get the confidence of those who hold
the purse strings is to know how to participate in the budget
approval process, and then to trade off costs to get YOUR vision
during the shoot. You could think of it as Directing, only
you’re Directing The Money.

So how does a Film Director get familiar with Budgets, Cost
Reports and the trading-off of costs techniques? Visit my web
site at http://www.talkfilm.biz and sign-up for 7 FREE
informative articles on how to participate in the budgeting and
cost reporting process. You can instantly download my Ebook,
“Walk The Talk”.

Written by John Gaskin - With 20 years experience in the Film
Industry as a Production Auditor, John has managed over 40 major
films all over the world. John has worked with some of the
industries top professionals including academy award winning
producer Ron Howard, Brian Grazer, Walter Salles, etc. See more
“About the Author” at http://www.talkfilm.biz .