The digital revolution has brought amazing flexibility and ability to control various factors during the image taking and making process.  Photographers, the hobbyist, the professional, the amateur all benefit from this ability to manipulate pixels.  However, with flexibility comes a price.  Digital camera equipment is still considerably more expensive when you factor in its’ lifespan, the need for additional resources for processing those images, the time it takes to get a usable image and the effort that goes into creating a work of photographic art. We all know that you can go to the local Walgreen’s and pay a $1.99 for a print – as a client you may wonder why you may pay upwards of $50, $70, $90 for a custom photography print.   Photographers hear this statement every once in awhile:

“How in the world can you charge $60 for an 8×10 if it costs me less than $2 to print at x store?”

The truth of the matter is the answer to this question is multifaceted.  Much of the cost of a photographic print produced by a professional photographer has a lot to do with the time,  equipment costs, artistic vision and reputation of the photographer not to mention expertise and the usual costs of running a legitimate business. The cost of TIME Approaching it from a time standpoint, let’s imagine that you have hired a photographer who has work that you love.  This photographer is traveling an hour to your destination to photograph your session.  Here is an example of a time break down:

• booking time: 30 minutes to one hour (client contact time + paperwork)
• pre-session prep time (30 mins – 1 hour, includes equipment and back up equipment checks + vehicle checks)
• one hour travel time TO session
• 15-30 minutes prep time at client’s home
• 90 minutes-2 hours with client photographing subject
• one hour travel time FROM session
• 30-45 minutes uploading time from digital cards from camera to computer
• 30-45 minutes time spent backing up the original images
• 2-5 hours editing time to present you with a diverse gallery of edited images
• 1 hour prep time getting ready for ordering
• 2-3 hours time with client for ordering images
• 1 hour sorting through and checking order
• 30 minutes-1 hour prep time for delivery
• 30 minutes-1 hour getting order shipped
• any additional phone time or time needed for add on ordering, shipment issues, quality issues

In this example, the time spent per client can range from just under 13 hours to 19 hours – dependent on the photographer’s level of service.  This is time dedicated only to ONE session.  When the photographer charges $150-$300 for the photo shoot (aka SESSION FEE) you are not just paying for the two hours of session time, you are paying the photographer for 12-19 hours complete time for your session.

The COSTS of Maintaining a Custom Photography Business:

Regarding equipment costs, a good quality professional camera with a selection of good optical quality lenses and digital storage mediums and computer set up can run from $10,000-$30,000 costs dependent on the photographer.  Even though you can purchase a really good quality digital SLR for about $2100 there are still other costs related to photography.  A good lens for portrait photography can run from $900 to $2500.  A dependable computer system with software loaded for business and creative usage can run $2500 to $8000 dependent on the photographer. Then come lab costs for specialty products.  A good photographer knows their professional lab is an integral part of their success.  These labs often cost more and offer a range of products that allows the custom photographer to continually offer new, innovative products for the discerning client.

www.professionalchildphotographer.com

To read Marianne’s article in it’s entirity, please see link below.

http://www.professionalchildphotographer.com/information/?page_id=16

In the client’s perspective…

Why…because what we sell doesn’t exist! At least not yet! Maybe, an idea is forming in your imagination but not really in the mind the client. This is why they feel that buying photography is a risky business.

Every day new technology forces us to rethink selling the basic “values” of photography to those clients who think that it has become child’s play to do their own photos. To get a basic image, yes it can be easy but will it do what that image should do; and that is to deliver the “VALUE” a client expects?

Many photographers sell the fact that they are working with digital images, have a large studio, win awards, etc. Here is a shocking fact: clients don’t really care about things which pertain to how good you are and what big equipment you have. They are looking for a solution to their problem, (need for a family portrait, need for a publicity image that will SELL a product, need for someone to really capture what their wedding day is all about…) So what you are really selling is the “value” of the solution you bring. And on that point you will need to educate your clientele because at this point they don’t know this is what they are really buying. You must help them see the “Value” in what they are getting instead of just the product itself.

The truth is, in the majority of cases, clients do not care about you, your studio or even your talents. All they care about is what relates to them. Sorry to hurt your feelings but facing reality is a must here.

In actual fact, we don’t sell photography, we sell what that photography brings or does for people.

How do we reverse the risk of buying our services?

Here are a few examples.

Cancellation policies: How many photographers have cancellation policies forcing a prospective client to pay if he or she changes their mind on a project? You haven’t done anything yet to earn this payment. How would that feel if you were buying?

Relax! Don’t jump to conclusions … Read on.

Instead of writing cancellation clauses from 30 days down to 7 days where the client will be compelled to pay full price, why not offer this clause: “Our aim is to build a strong relationship with our clients. In the event of a change in date or concept, we invite you to call us immediately so we can reschedule the project for a more convenient date; and this at no extra charge to you.”

I can hear all those who favor drastic measures. “What if I can’t get another job to fill in that date, I will be losing revenue.” My answer is how much money you will be loosing in the long run by alienating this prospect or client who is forced to pay you even though you have not performed a service for them. An unforeseen circumstance prevents going ahead on the day booked and instead of counting on his/her supplier (you) who understands the value of a “customer for life”, that client is forced to pay because of the cancellation policy. What a way to start a relationship!!!!

If you can’t replace a job with a 7 day notice, you may be in trouble yourself. In over 30 years in business, I have never had to use a cancellation policy, and yes, I had to reschedule many a time but I also had a list of faithful clients you would be proud to do business with.

WEDDINGS!

We can all agree that a wedding can’t usually be replaced within 7 days. You may need to have a last minute cancellation item in your wedding collection contract. However, always be aware that you have a much better chance of keeping the client IF you are open to discussion and negotiation rather than a hard and fast POLICY. A customer who was treated with courtesy and understanding will usually be tempted to come back to you in the long run.

100% refund policy:

How many photographers will actually redo photographs that are discolored with time? You see, all of this relates directly to the type of business you wish to have. A studio that caters to a higher end clientele will offer such a guarantee because that studio’s prices are set accordingly. And again, the client will see value in such a risk reversal concept.

Guess what; if… you ever have to replace a photograph for a client, it will be one in 1000.

Replacement guarantee:

Lastly, what if you were to offer a guarantee that if any large format portrait purchased did not bring total satisfaction, you would replace it or even refund the payment.

I know this will be difficult for some of you to swallow. But think about when you are dissatisfied with a product you have purchased. Think about when you are at the counter explaining your disappointment only to have the store clerk say, you know I would love to help BUT our “STORE POLICY” is…….. in essence NO! How many referrals will YOU sent this store?

Create customer loyalty instead of satisfaction.

This will create customer loyalty instead of customer satisfaction. Big difference. Satisfied customers may talk about their experience but loyal clients will go out of their way to speak about it. Referrals will come without any persuasive tactics. They had a wonderful experience, while purchasing a fantastic product, that’s all that counts for them.

Reverse the risk. Wow your clients!

“Successful people are those who do what unsuccessful people do not like doing”

Andre Amyot MPA HLM, Cr.Photog.

1 866 548 2004

Andre Amyot – PhotoCoach International Inc, is a professional photographer with over 40 years of experience, having owned and operated one of the most successful photo studios in North America.

Andre will share his knowledge in making your business as successful as you wish it to be at the next Florida school of professional photography.

Carol Walker, FSA, FED

Past President-Tampa Professional Photograpers 

FPP Delegate

Contact Congress Now

Please remember that some type of response is required—this applies to all photographers.

Here’s some information to help clarify:

• If sales tax was not paid on the item when purchased, the tax burden rests on the photographer via use tax (for the last 36 months of purchases).
• If sales tax was paid at the time of the purchase or if use tax was subsequently paid, you are still required to provide proof (for the last 36 months of purchases).

Please keep in mind the following:

• “Everything a photographer sells is taxable,” according to Florida law; therefore, sales tax should be collected and remitted on the sitting fee as well as the products.
• Wedding photographers should be collecting sales tax if a product is purchased in conjunction with the coverage charge (and the Florida Department of Revenue considers a DVD of images a product).
• If a wedding payment is for coverage only and an album or other product is subsequently produced, the photographer is not required to collect sales tax on the amount charged for coverage only.

For details on relevant Florida law, visit http://dor.myflorida.com/dor/. The specific Florida Department of Revenue Administrative Code relating to photographers is 12A-1.041.

http://photogfreebies.com/photographer-resources/what-is-a-professional-photographer/

I just posted on the MCP Actions website about selling CDs and it got me thinking so I thought I would write something up here.

A lot of what I saw was people selling hundreds of images for around $160, some with an additional session fee, somewithout anything additional. So, right now, this isn’t about pricing as much as working “smarter”.
So heres my thought:

If you sell a CD of all images fully editted (which Im assuming sounds like it means retouched) for $160. Lets pretend everyone charges some sort of session fee so that time is covered.

So if you give them 125 retouched images, you are making $1.28 per image. Not taken into account is your time, so say you would pay yourself $15 an hour to retouch (fair going rate for contractor) and say you spend 90 seconds on each image (which is pretty fast) thats over 2 hours, so take about $40 off your profit (because you are a business and this is an expense) now you just made $.80 per image. BUT lets see what happens when you give fewer images

Ok so what if you give 100 images – it changes to $1.60 per images you just saved about 35 minutes worth of work and your profit went up to $1.23 per image – you made .63 per image more which adds up.

Now lets look at a very reasonable number, give them 50 images! you are now making $3.20 per image. Retouching is now only 75 minutes (basically an hour) so in the end youre making $2.90 per image that is $2.10 PER IMAGE more just be reducing the amount you show. And you saves almost an hour and a half in retouching time!

Now I know the argument, people want a lot of images. I can tell you, people dont need over 50 images. When you show this many you lose the impact of the really great images. Back in the film days we show 8-10 images from a session, I know people expect more, but that is still a lot to show them. Really, 30 images is a nice number. Now I am a MASSIVE overshooter, so I get it, believe me. But Im going to be taking my own advice and starting to limit.

Now, I want to make it clear, this is NOT profit. This i where you start backing out your real expenses: taxes, equipment, rent or mortgage, insurance, etc. There is a LOT to consider, not just the bottom line. People think many times that if they can finish a CD in 2 hours for $160, they just made $80 an hour. Youre right as far as a starting place, but then there are the expenses…thats another topic.

Now just think how much more you make if you raised the price of the CD?

Do you ever get into a marketing rut?  You keep doing the same thing over and over because it’s what you know.  Well, sometimes we have to think outside the box and try something totally new.  Tamar and I were trying to think of a way to get our name and images in front of our target clientele without breaking the bank and we came up with this little idea:  appointment cards.  We went to some high-end day spas, dog grooming places and hair salons.  We offered to make them appointment cards to give to their clients.  We put a cute photo on one side with our logo and on the other side “your next appointment is________” (along with the business’s info).  The first set we gave them was complimentary, but so far every business has ordered more.  We charge them a nominal fee for re-orders.  The point is not to make money from the cards, but to get our images and logo in front of their clients.  Imagine if you went to a day spa for a massage and your appointment card had a really great image from a local photographer on the back.  Then you take your dog to be groomed and you get another card with a cool pet photo on it.  That’s FREE MARKETING baby!!!  And it works!