"Pleading poverty". The most frequent question I get from film producers is "I need _____ but I can't afford it, what should I do?" I give them the most useful piece of information that I ever received which is that it is ok to plead poverty. I was given this advice in film school and it has been one of the most useful suggestions I ever received.
"Pleading poverty" is not so much a negotiations strategy as it is a practical way of getting what you need when your film budget says that you just cannot afford it. Vendors and potential film crew all want to be part of something great. They usually will understand that independent filmmaking is not glamorous but rather a labor of love with a very constricted budget. So if you really need something for your film (film stock, a talented key crew position or production equipment), when you contact the person or company and they tell you their official price you don't just decline for film budgeting reasons. Instead, you say that you would really love to hire them but simply cannot afford them. Moreover, you must explain that what you are offering in compensation is not reflective at all of what you believe their services are worth and in no way are you trying to be disrespectful. You should also explain why their services are particularly needed to make your film great. Usually, people will try to make a revised "at cost" counter. At worst, they just tell you that they cannot make a deal.
Do not be embarrassed to employ this tactic because you should only use it when you are telling the truth. Also, I used to believe that only low budget independent films did this but then I learned that even smaller studio films used it because they too were constrained by a budget.
For a guideline of how much to budget for each category, check out this sample film budget.
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