Selling VFX isn’t just about beautiful pixels — it’s about turning craft into a predictable business conversation. The best proposals earn trust before a single render finishes.
The Business Myths of VFX: Pricing, Proposals, and Negotiation Tips.
Selling VFX isn’t just about beautiful pixels — it’s about turning craft into a predictable business conversation. The best proposals earn trust before a single render finishes. Below is a practical, step-by-step playbook you can follow to price smarter, write clearer proposals, and negotiate confidently — without giving away margin or goodwill.
Start by understanding the job (don’t guess).
Before you price, lock these facts down:
- The exact deliverables (shots, durations, formats, aspect ratios).
- The editorial state (locked cut? temp edit?).
- On-set materials available (plates, HDRIs, lens reports).
- The deadline, exhibition platform(s), and any broadcast specs.
- Who signs off, and how many review rounds are allowed?
- Why: Every missing detail is a hidden cost. Treat the brief like a checklist you must satisfy before estimating.
Pick the right pricing model.
Common models — choose what fits the risk and the client:
Time & Materials (T&M) — bill by hours/days + expenses. Use when the scope is fluid or the client expects iteration.
Fixed Price (per-shot or per-sequence) — best when edit is locked and scope is clear. Requires careful risk buffers.
Value-Based / Outcome Pricing — price tied to business value (use sparingly; needs proof of ROI).
Day-rate / Retainer — for supervision, on-set support, or ongoing creative work.
Hybrid — e.g., fixed price for hero shot + T&M for additional passes.
Choose T&M for uncertainty, fixed for clarity, hybrid for both
Estimate properly (break it down).
Good estimates are layered and auditable. Build estimates like this:
- Shot breakdown: list each shot and its complexity (track, cleanup, CG, sim, comp).
- Resource matrix: who does what (artist, senior, TD) and estimated hours per person.
- Non-labour costs: render/compute, storage, software licenses, travel, on-set capture.
- Overhead & admin: project management, coordination time, vendor fees.
- Contingency: small projects 7–10%; high-risk projects 15–25%.
- Profit margin: what’s healthy for your studio (commonly 10–25% depending on business).
- Make the estimate defensible — you should be able to show how you reached each line
Build a crystal-clear proposal (one page, plus appendices).
Scope & deliverables (shot list + durations).
Schedule & milestones (first pass, review windows, final delivery).
Price (total and a short breakdown; or package tiers).
Payment terms (deposit, milestones, final).
Included revision rounds and what triggers change orders.
Assumptions & exclusions (what you are not agreeing to do).
Rights & usage (license vs buyout; territories; duration).
Contacts & approval workflow.
Appendices: detailed estimate, technical notes (file formats, plate specs), sample SOW language.
Pro tip: present 2–3 packages (Safe / Recommended / Studio). People pick one of the middle or top options more often than the cheapest.
Cashflow: protect yourself with payment terms.
- Deposit: 25–40% on sign-off (we use 30% as a standard).
- Milestone payments: e.g., 30% at first pass, 30% on final delivery.
- Final payment: before release of final masters.
- Late fees: interest on overdue invoices (be reasonable and legal).
- Kill fee: if the project is cancelled after work begins (typically 25–50% depending on stage).
- Archiving fee: for long-term storage beyond a certain date.
- Always require a deposit before work begins. It separates commitment from curiosity.
Negotiation tactics that respect your values.
Negotiation is about movement, not surrender. Try these moves:
Anchor with packages: show Bronze/Silver/Gold so the client frames the value, not the price.
Offer a scoped concession: “We can hit X price if we remove Y shot from scope.”
Trade, don’t discount: exchange faster turnaround or additional passes for a higher fee, or a longer payment term for a small discount.
Present the risk: if they insist on a fixed bid and the edit isn’t locked, add a risk buffer or change-order clause.
Use PoC to close: offer a small, paid proof-of-concept (1–3 days) — cheaper than losing the bid and demonstrates capability.
Know your BATNA: your Best Alternative To a Negotiated Agreement. Walk away if the math breaks.
Try short negotiating phrases:
“We can do that — two options: A (scope X) for ₹Y, or B (scope Y) for ₹Z. Which fits?”
“If you need the extra turnaround, we can compress schedule for a 20% premium.”
Step 7 — Contract essentials (protect your studio).
- Include these clauses plainly:
- Scope & change orders (how extras are priced).
- Payment schedule and remedies for late payment.
- Ownership & license (who owns renders, who owns source assets).
- Typical: client receives final masters; studio retains underlying tools/tech unless bought out.
- Credits (how the studio is credited).
- Warranty & liability cap (limit on damages).
- Confidentiality & NDA.
- Force majeure & kill fees.
- Archiving & file delivery format.
- Tip: Keep legal language clear and add an executive summary so producers can read the business terms quickly.
Build trust throughout the process.
Transparency reduces renegotiation:
- Share look-dev frames early.
- Use a single review platform and require consolidated notes by a deadline.
- Communicate risks and mitigation plans up front.
- Log decisions in writing (email approvals count).
- A predictable process = fewer surprises, fewer disputes.
Pricing psychology & presentation.
How you present price matters:
- Show one highlighted recommended option and two alternates.
- Avoid raw hourly/daily lists in client-facing docs — show outcomes. Internally keep the hour detail.
- Frame costs as business outcomes where possible (audience impact, reduced shoot risk, on-brand quality).
- Be comfortable with silence after you state the price — let the client process.
After delivery: upsells & long-term value.
Don’t treat the final delivery as the end. Offer:
- Localisation & crops for socials (fast, high-margin work).
- Alternate aspect ratios and editing cuts.
- Maintenance & versioning retainers for ongoing campaigns.
- Asset licensing for future use.
- A good single project can turn into a predictable revenue stream.
Closing — Treat pricing as a conversation, not a concession.
Pricing and negotiation are skills you build. Start every deal by clarifying scope, presenting clear options, protecting cash flow with deposits, and negotiating by trading value rather than shaving margins. The business of VFX is not just making things look real — it’s making outcomes predictable for both you and the client.