Pricing Your Photography by Demand Instead of by Principle

"$10,00, Are you kidding me?" the lady said to Picasso. "You only took 5 minutes to do that sketch. Isn't $10,000 a lot for 5 minutes of work?" — “The sketch may have taken me five minutes, but the learning took me 30 years,” Picasso retorted.

Photographers love throwing this story around. It's a way to make yourself feel better when people tell you your photography prices are too expensive. It's like we have to remind ourselves that we are amazingly talented "artistes" and our digital images are "priceless works of art". Well, I'm kinda over it. 

I'm tired of watching people's faces fall when they look at my prices. I'm tried of explaining why a digital image is more valuable than a print. I'm tired of puffing up my chest and pretending to be some fancy million-dollar artist that I'm not (yet).

I want to stop charging prices based on principle and start charging prices based on demand. 
I'm not going to charge $3,000 for a box of photos because "that's what I should charge because I'm a fancy-pants talented artist that's worked hard to get where I am and now you get to pay me for it." I'm going to charge $3,000 only when there are 3,000 people banging down my door begging me to photograph them and they're all offering to pay me $4,000 to be first in line.
The price increases because there is demand. 

I think it's ridiculous to charge through-the-roof prices when you're just getting started and your inbox is empty and your voicemail-box is empty and your bank account is....empty. Some people say that slapping that high price tag on your website right from the beginning will make you look more experienced and desirable. They say it's important to enter the photography market "at the right level" rather than trying to climb up the ladder. (I totally bought into all of this when I was starting my business.) 

I agree that you shouldn't sell yourself short and market yourself as a "budget" photographer when you want to be a luxury photography. Not a good idea. But if your goal is to be a luxury photography, the reality is ... you're probably going to take a few years to get there. Your prices will be much lower now than they will be in the future. Fact. Accept that fact and be comfortable with charging a fair but modest amount now. 

A lower (more realistic) price point will make it easier for you to get new business in through the door — which is what you really need right now. As the business pours in, the prices can start to slowly climb the mountain. And like I said before, when the clients are climbing in through your windows and vents, then you can start charging ridiculous prices because people will basically be throwing money at you. (Now isn't that a nice idea...haha).

xoxo
Chamonix

When Pricing Your Photography Don't Forget About the Hidden Costs

Our jaws probably dropped to the floor. Cheryl and I looked at each other, shook our heads and then looked at Cindy and said, "We can help you." haha

This morning, I went to coffee (which always means Zen Green Tea) with Cheryl (my best photography buddy) & Cindy (a photographer we've been mentoring together for a couple years). Our conversation wiggled its way to the all encumbering topic of PRICING. Cindy shocked us when she told us how many (too many) hours she's been spending editing her photos. Just the costs of her time & labor would force her prices up through the roof.

We grabbed a pen and paper and hashed out the finances of one photo shoot:

Cost of Goods:
Welcome Packet — $8
Shipping Cost for Welcome Packet — $5
Branded USB Flash Drive (for delivering images) — $10
Shipping for USB Flash Drive — $5

Cost of Services:
Hair & Makeup — $140
Photographer's Time — $50 / hr (2hrs)
Photo Editing Time — $50 / hr (2hrs)
or Outsourcing Photo Shoot — $20
Office Stuff (Sending Emailing, Phone Calls, Consultations, Uploading Images to Gallery etc..) — $50 /hr (2hrs)

Total Cost of Goods: $28
Total Cost of Labor: $460
Total Cost: $488

*And this is not even considering the overhead of just running the business. This is just specifically for one shoot — not thinking about more general expenses like paying for your editing software, camera equipment, online gallery subscription etc... We're just trying to keep it simple here. 

So anyway, we realized that we have to be charging about $500 minimum just to cover the costs of doing a photo shoot. We haven't even discussed charging for images/prints yet, which is where many photographers make their profit. If you sell images separately, and you charged $30 / digital image and you sold 30 digital images, now you're making an additional $900 for your shoot. That can pretty much be a large chunk of gross profit. Hooray!

If Cindy felt it was too expensive to charge $500 for a photo shoot and then an additional (up to) $99 for photos afterwards. She could fudge the numbers a little and take a risk. If she charges less for her photo shoot, say $200, then she needs to make sure she makes up the difference ($288) with print sales in order to cover the costs ($488) of producing that shoot.

However she breaks down the price, she has to be aware of the hidden costs that come with time & labor spent on a project. If she spent 30 hours working on a photo shoot, even if she charged $488 for the shoot and sold $900 worth of prints, she would still be in the red, not making enough money to cover her labor costs.

It's easy to brush aside labor costs when you're getting started and I'm actually really comfortable doing it myself. I don't think people should worry about it too much when you're just desperately trying to get experience and build a portfolio. At that beginning stage of your photography career, I think the best action you can take is to work as much as possible (even for free). Work and work and work some more!!! And while you're doing all this working, start getting into efficient habits. If you practice spending no more than 2hrs of editing right from the beginning, then once you graduate to the next levels of business and you really start to value the cost of your own time, you'll already be accustomed to working quickly to preserve your hard-earned money, not letting labor costs suck it away into the black hole that is Lightroom/Photoshop. haha

Set those timers on your phones, start working faster, and stop forgetting that your time is part of the cost of your product. Good luck my friends. :)
xoxo
Chamonix