Base Usage Rate.

We produce images for others to use.

So our goal is to produce & provide the best images possible so that others will want to use them... and use them a lot.

Simple.

However, putting a price on what we do is not quite so simple.

Why ?

Because there are more than 100 different ways to shoot any subject – from quick snap-shots using just a basic camera, through to full production staged shots using larger camera systems, lights, models, stylists, etc, etc – which means all images are not equal. So depending on which way we choose to shoot it, that will, in some way or other affect our costs… which will ultimately affect the fee.

However, because the images are being produced for others to use, then the value of what the images are worth to them, also needs to be taken into account. Media use, Period of use & Territory of use, are usually the 3 main things that will determine that value to them.

So we need to take all of this into account – and this is were the Association of Photographer's Base Usage Rate (BUR) pricing system comes into play – to help us determine the value of our images and what the fee should be to ensure we get it right.

The BUR figure is therefore our starting point, when being asked to quote a fee.

It’s our estimated basic production costs, to produce images for Standard use.
(Standard Use is considered to be either: 2 media for 1 year or 1 media for 2 years, in 1 country).

So we start by working-out what our basic production costs would be first, by taking the following things into account:

(Please note: some of these things may not apply - it's simply a check-list to help us work-out what our basic costs will be, to finance the project to a standard level - which may be very different to the actual usage required by the client).

Next, we divide is figure by the number of images we plan to produce and that becomes our BUR per image price.

Then using the Association of Photographer's guidelines - which can be found in their book Beyond the Lens - we workout what the Licence fee should be for the use of our images.

Example:
If the client says they only want to use the images for Web use only (1 media) or for Magazine ads & Brochures (2 media), then the Licence fee would be similar to our BUR figure - as it would be based on either 1 media for 2 years use on the Worldwide web or 2 Media for 1 years use in 1 country i.e. Standard use.
If however, the client said they required more use of the images than this, then we would negotiate the fee starting with the BUR figure and add (+%) to that figure – or if they said they required less use of the images than this, then we would negotiate the fee by giving them a discount (-%).

So the Media use, Period of use & Territory of use, are the 3 main things we will take into account when quoting the Licence fee.
(As it’s the client’s usage requirements that will determine the value of the images to them – and it’s that value to them that will determine their budget – which inturn will determine what we can afford to do to meet their requirements.)

It's based on:

Little Use = Little Value.
Greater Use = Greater Value.

When Quoting a fee, we try to keep it simple for our clients to understand; as well as, make the deal as clear as possible, so as to avoid any misunderstandings down the road.

Example:
The quote below is based on a client asking us to produce & provide 6 images, for them to use in 3 media, for 3 years. (As you can see, we have estimated our base rate for Standard use to be £210.00 per image).
So to help us meet this client's planed usage requirements, the required fee would be calulated out like so:
BUR+100% for an additional media, plus for 3 years use in 3 media, add 50% = Total.
This is known as the Licence fee... which if approved, would then become our budget to meet this client's requirements:

So we use the BUR figure to workout the Licence fee - and it's that fee that we then use to determine what we can ultimately do - to achieve our goal.

Which is produce & provide the best images possible, that they will want to use... and use a lot.