In these examples,the basic concept of usage is shown
EXAMPLES
1) A client requests a quotation for a 4 day industrial shoot and declares usage as a corporate brochure plus a poster
for exhibition use, within the African continent for a period of two years.
Your day rate is R4000/day with materials/digital preparation estimated at R1500, transport, accomodation etc provided by client.
Your BUR is R 4000 which allows a base usage of 1 media for 2 years or 2 media for 1 year in SA.
In this case, the corporate brochure for 2 years is included in the BUR, the poster for 2 years is 100% of the BUR and use within Africa for 2 years is
300% of the BUR. The licence period is for 2 years
CALCULATION:
Photographer not applying usage earns R 17,500 in fees and materials.
Photographer applying usage earns R 33,500 in fees and materials
2) A client requests a quotation for a product shot, estimated to last 4 hours. Usage is declared as a press ad, direct mail slot and point of sale for
2 years all within SA.
Your hourly studio rate is R 650 which allows a base usage of 1 media for 2 years or 2 media for 1 year.
The press ad and direct mail slot run for less than 1 year and can therefore be part of the base usage. The licence period is thus 1 year.
The point of sale application is calculated at (25-)50% for the first year and (25-)50% for the second year. The actual figure used depends on
the photographer's negotiating skills and the client's budget. For the sake of this example we will use 40% for the first year and 33% for the second year.
CALCULATION:
3) Near the end of the year, the client indicates that he wishes to re-run the press ad and continue the point of sale for a further year.
CALCULATION:
A photographer not using a usage related costings system earns R 2600 in fees.
A photographer applying usage earns R 3889.16 - 50% more.