I'm kind of getting more than a little annoyed at people quoting a film's budget...
The reality is that most of us can't get the money required to even look at the projects you normally work on even at the low end of your budgeted projects. I shot a feature for $250. Still being edited, but there were no other costs -- at all. It's nearly unwatchable and the story is poorly told (my fault)... but it's in the can, 47 hours of unlogged and unclappered footage. But it cost $250 to shoot a feature. FACT. If I polish that turd, I'll invest time into it, not money. When it comes to getting it seen, that's a different horse, not part of the production budget.
Rodriguez shot el mariachi and edited it on $7000. There was tons more spent on it, but to get it to the point where he was shopping it around, he spent $7000 to hold the product in his hand and be able to shot it to people. You've never seen that version. It was picked up, the audio redone and a blowup from the negatives paid for by the company that picked it up... but he spent $7000 to get that single VHS copy in his hand to show people and try to sell it. Well documented. No, it's not the final cost. But you're the only talking about the final cost (which if you get someone to distribute for you is generally on their pocket book, not ours as the content creator). Your world that you operate in is different than the one I do. I have 40-50 people who will show up on set for a 8 weekend engagement with a single phone call and work for food. They would be doing community theatre for free if they weren't working with me. We're not diving into the deep end of union shoots with paid everybody and expensive locations and paid permits and insurance... we're basically a large group of friends getting together and making movies. We hope to get them distributed at some point, but for now the act of creating is driving most of my company.
The last piece we did will end up at about 20-25 minutes and cost $2500. It's the strongest piece we've done and is monumentally more watchable than what we've produced in the past. Locations and equipment and time volunteered.
From my viewpoint, I fundamentally disagree with you arguing that the final cost is the only one to be considered as not all that money comes directly from the filmmaker in many cases. I'm sure with the projects you generally encounter, what you're saying is entirely correct. Distribution and Marketing are budgeted up front... but that's not the only reality. It's certainly not my reality. It's not the reality of many of the other folks here at the same level where I'm operating, and it's not necessarily the same reality that other filmmakers are working under...
wiki said:
The US$7,000 production was originally intended for the Mexican home video market, but executives at Columbia Pictures liked the film so much that they bought the American distribution rights. Columbia eventually spent several times more than the 16 mm film's original budget on 35 mm transfers, promotion, marketing and distribution.
- citation from the wiki: Shone, Tom (November 25, 2009). "Paranormal Activity and the myth of the shoestring shocker". The Guardian (London). Retrieved May 1, 2010.
So no... the initial budget isn't always the only thing to look at and it's certainly not what we see on screen for the on in a million that gets picked up by a distributor... but those initial budgets are no less real for that fact.
I've learned to do enough of what you do to be able to produce a project (certainly not as well as you could do -- I don't have the equipment or experience for that) because you aren't in my budget... I am. Beginning to end, I have done all of the jobs on set - because it's what I can afford and you wouldn't believe how much a filmmaker can save by simply not hiring anyone else to work on the development, preproduction or post production... not a dime spent there... and for us in production, just craft services.