edition 11: june 19, 2003

do you understand what you're approving on your TV estimate?

Welcome to 'p3 news'. At the AANA CTVA  Television Workshops, sponsored by P3, we launched our P3TV Benchmark Application on the Internet.

In this edition of e-news we will explain how the P3TV Online Benchmark Application will make your television estimates more transparent and allow you to make more informed decisions on your television production costs.

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is it enough just checking the bottom line?

Traditional agency estimate
You get the television production estimate from the agency and it is just over your budget. Do you ask them to review the costs or do you sign it off?



In most cases the agency estimate has too little information to make an informed decision. The details are too few and 60% of the cost is in the production company price alone.

Typical film company quote
So you ask for the film company quote to be supplied. Typically it is extremely detailed and technical with up to 12 pages of prices in tiny text.


And because it was faxed to the agency who have faxed it to you, some of the words and figures are unreadable. Even if you know what you're looking for, each estimate is in its own format so comparing like-with-like is virtually impossible.

P3TV's standard format
The first thing you will notice is the P3TV estimate is standardised. Something the industry has been trying to achieve for more than fifteen years. A Summary Page links to the breakdown pages for Agency Costs, Casting and Talent Fees, Film Company Costs, Post Production Costs and Audio Costs.



The standard format means you can compare like with like. More importantly the format requires the agency and suppliers to provide information on the quantity of resources required as they enter the data.

Benchmarking the costs
The other advantage is you can have the costs compared to standard industry average benchmarks to see how the individual costs within the estimate compare.



This is done through a report generated on-line that shows you the cost submitted by the agency, an indicator showing where this cost sits in regard to the industry benchmark range, and an index measure between the mid point of the industry benchmark and the cost submitted to show how far it deviates from the benchmark.

Investigate the costs
With the benchmark report you can start to review the key costs that make up the quote, rather than just looking mystified at the bottom line.



 see for yourself  

If you would like to know more about your television production estimate than just the bottom line, contact P3 on 03 9378 3223 during business hours or email tv@p3.com.au to organise a demonstration of the P3TV Online Benchmark Application. All you need is internet access and you can be registered today!

Or go to our website http://www.p3tv.com.au/ and click on "support". There you can download intructional videos on the P3TV Benchmarking Application for advertisers, their agencies and production companies. 
 
 

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