So you've decided to make some money with your camera. To do that, you have to take pictures for people, and you have to charge a price for it. So where do you start? How do you determine what to ask for the work you do? When it comes to the business side of photography, this is the number one question I've been asked. It's a hard one to answer. There are just so many variables involved, its nearly impossible to answer. Everyone of us has a different style that appeals to a different market. We live in various places serving very different demographics. Different markets will tolerate different rates. To an extent, each one of us will have to figure out what we will charge for our photography. Being relatively new to the industry, and having to have figured this out for myself, I do have a few thoughts on the subject. I could go on and on about it, but hopefully I can at least get you thinking.
When starting out, it is easy to think that price alone give you the edge over your competition. "If I can just undercut Frank's Fabulous Fotos, then I'll get some of his clients." Its natural to think this way. So much of our materialistic culture is based around this ideal. Think of it this way. Say there's a small-town hardware store that sales a particular power drill for $200. But down at Wal-Mart you can get the exact same power drill for $150. The same exact drill, made by the same exact manufacturer, but at 3/4 the cost. That's a no brainer. But photographers aren't in this game. The photography you offer is not, and never will be, the same as anyone else's. You view the world in a particular way, possess a particular shooting style, and produce a unique photograph. To think that what we produce is exactly the same as what everyone else produces is ignorant. We aren't manufacturing a widget. We are creating art. And since we are not producing the exact same thing as Frank down the street, we shouldn't be competing on price alone.
If we ever get into a price war with photographers around us, it won't be long before all of us are out of business. I work part time at a retail camera store. We sell some of the exact same items found at other stores. Competing on price alone, we can lower the price on these items to barely above cost, or even below cost, in order get customers in the door. The hope is we can then sell other items that have much higher profit margins. We may loose a couple bucks on one thing, but profit fifty on another. The reason you can't do this as a photographer is simple. There is only one of you. You only have one thing to sell. If it we compete on price alone, we would have to lower our prices over and over until we are charging less than what it costs us to be in business. Game Over when this happens. And there are so many photographers in the industry who are doing this very thing. And many more who have gone under because of it.
Have you ever walked by the portrait studio at a Wal-Mart and seen how much they charge for a portrait package? Here its something like 30 prints for $9.95. Ever done the math on that? The prints lone would cost me much more than that. And that's not considering my time to photograph the family, edit the images, the wear on my equipment etc. At $9.95, that's massive loss for someone who can't also sell the family a flat screen TV for a large profit. It may be different where you are, but I can't pay my bills with a negative cash flow. So how do we compete with Wal-Mart? Simple: you don't. Nor should you. What you produce should have so much more value than what Wal-Mart has. I know that people can get 30 prints for $9.95 there. But I also know that they can come to me and receive much more value for their money. "Say what? Your sitting fee alone is nearly 13 times Wal-Mart's entire package price. How in the world is that more value?!?"
David duChemin wrote, "Value is not determined by price. Value is about what the client gets for the price paid. If I pay $100 and get nothing, that's not value. It's cheap. If I pay $1,000 and get much more than I expected, that's not expensive; it's value. And when you consider this way of thinking, it's easy to see how competing on price can lead a client to look at your pricing and ask the question, 'what's wrong with their service? Why are they so inexpensive?' Repeat after me: 'I can't compete on price alone.' Is pricing important? Yes. Will clients consider the price? Yes. But if you need to lower your prices until you are bankrupt, then these are not clients you want and you should find a new market... the clients who are worth keeping want value."
Instead of worrying about what others are charging for their work, we should be building value into our own. Put simply, charge cheap rates, and you're perceived as cheap. Add to what your clients receive for the money, and you're seen as valuable. Think about it. Say you have a newborn daughter. You want portraits taken of your beautiful little girl. Money is no object. Do you go down to Wal-Mart for the $9.95 package, or do you higher Anne Geddes and pay her whatever she charges? Somehow, having your child photographed by Anne Geddes seems so much more valuable than being able to pick up some milk and a new shirt on the way out of the studio.
Get where I'm comin' from? The value of your work is perceived. Many of us are very good at creating the images we do. However, way too many of us charge way too little for it. Granted, some simply don't have it, and need to move on to something else. I tried to play the guitar for years, and finally gave into the fact I simply didn't have it. Bt for the rest of you, those who are shooting good, solid photography, need to recognize the value of your work. Charge $9.95 and your work won't be perceived nearly valuable as if you were charging $1500. Also, you will attract certain clients based on your perceived value. A $9.95 photographer will attract $9.95 clients. A $1500 photographer will attract $1500 clients. This all should play into your thinking as you determine what to charge for your photography.
One more thought before signing off. If you have decided your photography is unique, has value, and are charging a good amount for it, then what you create better back up your prices. These two things, the work you produce and the amount you charge, go hand in hand. Anyone would gladly pay $9.95 to have their newborn photographed by Anne Geddes. That would be an incredible value. But no one in their right mind would pay Wal-Mart what Anne Geddes charges. That would be a rip off.
If you say you can give something of high value for really cheap, people will question its value. If I were to tell you I'd sell you the Mona Lisa for $1, all kinds of red flags would go up. "Is it the real Mona Lisa, the one that is worth so much more than a dollar? What's wrong with this deal?" But if I were to tell you I'd sell you a great painting for $1000, and gave you the Mona Lisa, you'd think you got a great value for your money. Work on your craft, charge what its worth, produce great images, and add value where you can. You are an artist, not a peddler of power drills. You cannot and should not compete on price alone.
So there you go, 1348 words about pricing your work. This is a massive subject, one I am still learning. I could never do the topic justice in a blog post. But hopefully I've given you something to think about. Whatever you do, don't undervalue your work. It is worth so much more than you think it is. Do your research, think it through, and charge accordingly.
Now, go out and shoot something!
When starting out, it is easy to think that price alone give you the edge over your competition. "If I can just undercut Frank's Fabulous Fotos, then I'll get some of his clients." Its natural to think this way. So much of our materialistic culture is based around this ideal. Think of it this way. Say there's a small-town hardware store that sales a particular power drill for $200. But down at Wal-Mart you can get the exact same power drill for $150. The same exact drill, made by the same exact manufacturer, but at 3/4 the cost. That's a no brainer. But photographers aren't in this game. The photography you offer is not, and never will be, the same as anyone else's. You view the world in a particular way, possess a particular shooting style, and produce a unique photograph. To think that what we produce is exactly the same as what everyone else produces is ignorant. We aren't manufacturing a widget. We are creating art. And since we are not producing the exact same thing as Frank down the street, we shouldn't be competing on price alone.
If we ever get into a price war with photographers around us, it won't be long before all of us are out of business. I work part time at a retail camera store. We sell some of the exact same items found at other stores. Competing on price alone, we can lower the price on these items to barely above cost, or even below cost, in order get customers in the door. The hope is we can then sell other items that have much higher profit margins. We may loose a couple bucks on one thing, but profit fifty on another. The reason you can't do this as a photographer is simple. There is only one of you. You only have one thing to sell. If it we compete on price alone, we would have to lower our prices over and over until we are charging less than what it costs us to be in business. Game Over when this happens. And there are so many photographers in the industry who are doing this very thing. And many more who have gone under because of it.
Have you ever walked by the portrait studio at a Wal-Mart and seen how much they charge for a portrait package? Here its something like 30 prints for $9.95. Ever done the math on that? The prints lone would cost me much more than that. And that's not considering my time to photograph the family, edit the images, the wear on my equipment etc. At $9.95, that's massive loss for someone who can't also sell the family a flat screen TV for a large profit. It may be different where you are, but I can't pay my bills with a negative cash flow. So how do we compete with Wal-Mart? Simple: you don't. Nor should you. What you produce should have so much more value than what Wal-Mart has. I know that people can get 30 prints for $9.95 there. But I also know that they can come to me and receive much more value for their money. "Say what? Your sitting fee alone is nearly 13 times Wal-Mart's entire package price. How in the world is that more value?!?"
David duChemin wrote, "Value is not determined by price. Value is about what the client gets for the price paid. If I pay $100 and get nothing, that's not value. It's cheap. If I pay $1,000 and get much more than I expected, that's not expensive; it's value. And when you consider this way of thinking, it's easy to see how competing on price can lead a client to look at your pricing and ask the question, 'what's wrong with their service? Why are they so inexpensive?' Repeat after me: 'I can't compete on price alone.' Is pricing important? Yes. Will clients consider the price? Yes. But if you need to lower your prices until you are bankrupt, then these are not clients you want and you should find a new market... the clients who are worth keeping want value."
Instead of worrying about what others are charging for their work, we should be building value into our own. Put simply, charge cheap rates, and you're perceived as cheap. Add to what your clients receive for the money, and you're seen as valuable. Think about it. Say you have a newborn daughter. You want portraits taken of your beautiful little girl. Money is no object. Do you go down to Wal-Mart for the $9.95 package, or do you higher Anne Geddes and pay her whatever she charges? Somehow, having your child photographed by Anne Geddes seems so much more valuable than being able to pick up some milk and a new shirt on the way out of the studio.
Get where I'm comin' from? The value of your work is perceived. Many of us are very good at creating the images we do. However, way too many of us charge way too little for it. Granted, some simply don't have it, and need to move on to something else. I tried to play the guitar for years, and finally gave into the fact I simply didn't have it. Bt for the rest of you, those who are shooting good, solid photography, need to recognize the value of your work. Charge $9.95 and your work won't be perceived nearly valuable as if you were charging $1500. Also, you will attract certain clients based on your perceived value. A $9.95 photographer will attract $9.95 clients. A $1500 photographer will attract $1500 clients. This all should play into your thinking as you determine what to charge for your photography.
One more thought before signing off. If you have decided your photography is unique, has value, and are charging a good amount for it, then what you create better back up your prices. These two things, the work you produce and the amount you charge, go hand in hand. Anyone would gladly pay $9.95 to have their newborn photographed by Anne Geddes. That would be an incredible value. But no one in their right mind would pay Wal-Mart what Anne Geddes charges. That would be a rip off.
If you say you can give something of high value for really cheap, people will question its value. If I were to tell you I'd sell you the Mona Lisa for $1, all kinds of red flags would go up. "Is it the real Mona Lisa, the one that is worth so much more than a dollar? What's wrong with this deal?" But if I were to tell you I'd sell you a great painting for $1000, and gave you the Mona Lisa, you'd think you got a great value for your money. Work on your craft, charge what its worth, produce great images, and add value where you can. You are an artist, not a peddler of power drills. You cannot and should not compete on price alone.
So there you go, 1348 words about pricing your work. This is a massive subject, one I am still learning. I could never do the topic justice in a blog post. But hopefully I've given you something to think about. Whatever you do, don't undervalue your work. It is worth so much more than you think it is. Do your research, think it through, and charge accordingly.
Now, go out and shoot something!
