Pricing Photography: How To Keep Your Customers & Stay Open For Business

In this day and time, we photographers can't just go out there and start shooting.  Gone are the

days where we could pursue our passions and dreams without giving serious thought as to how

we will survive! Now, it's all about branding, strategies, social media, the economy and learning

how to run a business...not just about learning the features on your camera.  One of those 

"must learn" items is how to price our photography.

What I'm writing about today is what I've learned (the hard way) since starting my small 

photography business a few years ago and has been one of my most difficult tasks to date.  

The fact of not beginning this little venture with large funds, has been the catalyst for me to

continually fine-tune EVERYTHING I can to ensure that I remain in business.  It can seem 

daunting and complicated, but I promise, you CAN do it without going insane!

I am not an expert, but this is my finely-tuned list that has worked for me.

1. Have a solid base of customers:

If your customer base (realistically) consist of a few repeat clients - then put off increasing
prices for now.  Otherwise, you'll probably lose the few customers you have, rather than gain
more.  Work on getting that solid base so you'll have enough customers to support the
increase in fees.

2. Price according to cost:

This was one of the hardest things for me to do, and sometimes it still is.  If you have a large,
agreed upon contract price for a project...well, it feels great, right? So - what did it COST YOU?
What is your time worth?  software? expenses? i.e. gas, food, travel, etc.? How much per hour
are you making if you shoot for 2 days, then edit for 1 1/2 weeks?  Lets not forget the level of
skill and knowledge it takes to edit properly and with care. (subject for another time)

3. Price the competition around you.

Check out not only other photographers, but include the 'box photography studios' like
PictureMe Portraits, (CPI Corp)
Olin Mills (LifeTouch)
JC Penney Studios (LifeTouch)
Sears Portraits (CPI Corp)
Portrait Innovations
They run specials all the time, but hopefully, a.) You're staying in contact with your customer
base and b.) your photos are unique, beautiful, and set you apart from box store
photographers.
You can run specials too, you know.  Do it.  Your customers will love you for it and it'll make
them even MORE loyal to you.

4. It doesn't hurt to ASK.

By that I mean, survey your customer base, asking if a % increase seems reasonable to them.
You don't have to go into every detail as to why - but you could say due to software upgrades,
new technology/equipment cost, etc.  if you feel you have to say something.  Most customers
will appreciate the personal notification, and will feel like you've included them in your personal
circle....which in one way - you have. I have found that having a personal chat with my
customer(s) has proven over and over to be a key ingredient in my success.

5. What type of photography you are producing affects pricing:

1/3 of how to determine pricing is the TYPE of photography you produce. Obviously, cost are
different for a studio-only photographer, a nature photographer, action/sports photographer,
photojournalist, or wedding photographer.  You can't just add a % multiplier to your cost and
expect to come out on top of the pricing game!

6. Your Business Model:

What are your profit goals for the year?  How would your prices change with a change in the
number of sessions you do per year? Would prices increase or decrease? Are you prepared
with a Game Changing Plan B? Do you have additional income or savings set aside to help you
start your business and keep it running until you are ABLE to increase your prices? These
numbers should be included in your initial pricing model.

7. Accurate package pricing:

You must know what your costs are, which includes personal branding printing cost, shipping,
materials to ship your photos in, etc. You need to know these costs before you can accurately
price your packages.  One way to reduce cost is online proofs, which has become pretty much
the standard; however, I deal with a lot of older customers who prefer looking at printed proofs,
so keep that in mind.  Online package pricing should also account for any additional credit card
or PayPal fees you incur with each transaction.

8. Video:

So often now, with snazzy software and cameras that offer 1080/HD video, everybody wants a
video - of everything.  Be sure to include in your price quote the cost of that task i.e. buying
DVD's, labels (that cost extra if you have them printed) or for ink to print them yourself.  All of
these costs add up!  Again - what is your time worth?
My first video was a nightmare.  Me and my business partner shot video for 3 days at an event.
  I bought the software to put the video together, but also had to buy an additional, advanced
software for splitting sound and video 'bites' that I didn't think of previously.  Plus - the kicker - it
took me 1.5 weeks to put it together.  Needless to say, we lost our butts on that deal!!!!

9. Fixed expenses: 

Although most of your fixed expenses should be included within your Business Model, I
disagree that some of them should be paid for by your customers.  By that I mean, taxes,
business licenses, equipment, studio space, office materials - all are part of small business
items that you'll be able to take off on your taxes. So to me, including those things in your
pricing is like double-dipping and I don't do it.  That's just the accounting auditor in me.

10. Your market:

A photographer in a small town that charges lower prices for family portraits, but has a steady
customer base (repeat customers) can often end up making more per year than the
photographer that travels for shoots and does - say, 1 big shoot per month!  Know your market.
Obviously, customer base and location should be another 1/3 of your pricing model.

11. Hourly vs. Contract:

Admit it, we all do it.  For some customers, we'll charge an hourly or lower rate for a shoot
rather than a contracted / studio price.  When, depends on a few things: a.)difficulty of the shoot
(Animals & some children require longer and sometimes requires these types of fees.) and
b.) What the customer can afford at the time.  I'm not saying give it away for free, but to keep
our base customers, we need to show that we are there for the long haul.
I have a customer (a steady customer) who lost her job.  She needed pictures for Mother's Day
but couldn't afford my regular studio fee. Solution: Hourly fee & in cash.  She paid less for her
pictures and I kept a customer.  She has since found another job, and continues to be one of
my best customers.  She knows I'll work with her to keep her as a customer and to me - that's
everything in business.  Everything.

12. Use some plain common sense:

Build up your prices over time.  DON'T just go from 'barely there' to 'world-renowned
photographer' pricing. Increase your pricing as your skill level, as well as your customer base
increases.

In summary, we photographers have an unbridled passion to share how we see EVERYTHING
with the world, whether it's good, bad, beautiful, ugly, disturbing or comforting.
We are the record keepers and time preservers. We are passionate about our craft and more 
often than not, will fail to find any substitute for it.
However, realistically, we need to be smart about our business as any small business does, so
we must pay attention, make an effort to learn how to do things better and more efficiently and
by doing that, hopefully - we stay in business.  Efficient pricing is just one of the tools we can
use - like a carpenter uses his tape-measure to build a house - so too can we build a great
photography business. 

Some suggestions for pricing software:
1. Start Smart Pricing Software - for the amateur going professional photographer,
                                                       with lots of modules if you are a studio 1 person,
                                                       studio 2 people, wedding, wedding & portraits, etc.
                                                       http://howmuchdoicharge.com/2011/02/start-smart-portraits/

2. fotoQuote Pro &
    fotoQuote Pro 6 -                      This software is the industry standard for stock and
                                                        assignment photography estimating.
                                                        http://www.cradocfotosoftware.com/fotoQuote-Pro/

3. BlinkBid -                                    This is for the Video professional. Includes Estimating
                                                        production & invoicing software.
                                                        http://blinkbid.com/

4. HindSight Photo Price Guide - This software can be adapted to suit your needs, but
                                                       you'll need to be knowledgeable in spreadsheets. One
                                                       great thing is it has currency conversions, it's versatile
                                                       and you can download a trial version.
                                                       http://www.hindsightltd.com/products/PriceGuide.html

5. NPPA Cost Of Doing
   Business CDB Calculator-        This software is custom made for the Photojournalist.               
                                                       http://www.nppa.org/professional_development/business_practices/cdb/cdbcalc.cfm