PPA Today: Photography Pricing Archives
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- What Other Area Photographers Charge. Don't fall into the trap of basing your prices on what the other guy is charging. Why? Because you have no idea what his actual costs are, which means you don't know if he's making money or losing it. It's also quite possible he doesn't know either, especially if his prices are based on some other photographer too.
- The Level of Your Work. If you base your prices on the level of your work, it gets sticky real quick. Who decides when you're good enough? Your clients? Other photographers? Most likely it's based on how you perceive your work-or worst, how you perceive what other people must think about your work. That's a self-inflicted headache. If you're always growing as an image marker, the truth is, you probably never feel as though you've "arrived" because there's always room to grow.
- What You Would Pay. Another mistake is to forget you are not always your client, and start asking yourself what would you pay for your own work? This can be an especially subtle and damaging trap because it preys on the natural bent of dissatisfaction in one's own work. I call an epidemic of self-abuse within the creative and artistic community. The roots of which are intertwined within our hidden thought patterns and how we feel about ourselves as human beings (see the upcoming post: Identifying the Patterns of Artistic Self-Abuse).
- The first step includes an in depth and brutally honest look at what it costs you to produce a final product for your client. The primary factor of a healthy business is that it makes more money than it spends.
- Under PPA benchmark research, the average photographer's salary is 20% of his or her gross income. In very simplistic terms, this means if you charge the client $100 an hour, you only make $20.
- That other $80 enables your business to sustainably function by covering the raising costs of products, albums, computer upgrades, equipment, maintenance, education, healthcare, etc. If you don't have these costs built in, guess where they come from? That's right, they come out of your 20% slice.
- Once you honestly and thoroughly crunch the numbers, you'll know without a doubt where you need to set your prices. You'll have a bare minimum you'll need to charge for your business to survive without stealing from other areas of your life.
- It can be an overwhelming process to go down this road, and so I understand why most people never start. But it's like someone saying they may be worried about being seriously sick so they don't want to go into the doctor. The truth might confirm your worries, but it can also offer you an opportunity for a real and exciting solution. You can get the help you need.
- Here are some tools to help you get started: the PPA Benchmark Survey, Expense and Pricing Templates from PPA, and Stacey Reeves' Pricing Guide.
- We are available on an individual basis if you need help applying this information to your specific circumstances. Contact us here for more information.
Dear PPA Member,
Lemonade stands--does that phrase bring back memories? They are often the first entrepreneurial adventure for many a kid. On a hot day, you could make a quick buck or two (or more than that if you were lucky!) and then head out to the corner store to grab an ice cream cup. You didn't have to worry about pricing for profit. Or expenses. Or factoring in your labor costs. (How much do you charge for stirring way too much sugar into a pitcher of weak lemon water?)
But you're not running a lemonade stand anymore. You're running a photography business. If you want to be successful, you've got to be profitable. This week's Vital Signs will have you dropping your wooden spoon and picking up a calculator, so you can afford more than ice cream at the end of the day.
Director of Member Value & Experience
P.S. We've got a new Extreme Deal from ImageQuix: PPA members get one year of Unlimited Uploads with ImageQuix for only $99 when they sign up by September 9 (a $249 savings).
Dear PPA Member,
What price do you place on the value of your work?
You could get all philosophical and say that your work is, like the Mastercard ad, "priceless." But when it comes to having your clients pay you for the services you provide, you have to have a price in mind. After all, those new camera bodies and lenses don't grow on trees. (If you do have one of those trees, I'd keep that a secret.)
Whether you're an established commercial photographer or are looking to branch out into commercial work, this week's Vital Signs covers the considerations needed for effective commercial pricing. Even if you're not a commercial photographer, don't miss the information on valuing usage rights, something all photographers need to understand.
P.S. Remember last week's Vital Signs introduction, where I compared my sea monkey experience to testing the waters with a new vendor? Well, Scott Kurkian, PPA's CFO, was so moved by my admission that I was given this.