Do they have a budget first and foremost? Are you doing this as a favor to build a reel? What are they expecting out of it quality-wise?
Local commercials range here in SLC from $500 for what I call really, sh***y local crap with no quality to upwards of $40k for pracitical locations, shot on film / HD and little to no animation.
What are you shooting on? Can you do the whole thing yourself? Are you looking to compete with local broadcast or public access?
Like cheno said ,whats their budget,, don't be afraid to ask them. They may not have a clue or they may say 10 K, or $500.00
gives you a starting point at least.
Well to start you have to figure your hard costs - this will let you know if you even will fit into their budget :)
What do you expect to make out of it? What is your time worth? Hourly for shooting / editing? Do you consider animated titles part of editing or is that under a graphic design charge?
Voice Over? Are you paying local talent at going rates? Having someone do it pro bono?
Music? Are you composing your own? Cost in time? Using buyout tracks?
Talent? Are you placing nice talent in the shots? Cost for extra / modeling? Using local customers? (remember release forms!!)
After all your hard costs are covered, then you figure out what you really need to make on top of that. may not hurt to check going rates in your area. Call around and do some shopping.
Mike is dead on. That's how we calculate things.
Rather than a "package price," we charge an hourly rate here at the local cable company. For a "simple shoot," we expect about 4 hours. Editing, depending on the complexity, would be 4-8 hours. Add a VO and if you charge for needle-drop.
If you're doing multiple locations, just keep track of your hours and expenses (talent, travel, rentals, etc.)