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Posts Tagged ‘pricing

Should You Post Your Prices on Your Website?

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By Scott Bourne

It’s becoming a common question. Should I post my prices on my website? Photographers struggle with this question as much as they deciding how MUCH to charge. But it’s a critical decision. Make the wrong decision here, and you could cost yourself a bunch of money.

Here’s my take.

I’ve had a website of some kind since 1994. I built one of the first portfolio websites around. I’ve experimented with both solutions. I’ve even used hybrid solutions. In short, there is no perfect answer for everyone, nor is there a right or wrong answer, but my experience has taught me that there are some guidelines you should carefully consider before you decide.

First, you have to understand and define your market. Are you appealing to the price-conscious bride or the high-end, couture bride? Are you selling “fine art” or are you selling “posters.” Knowing your market is extremely important. If you’re at the low end, frankly, you’re offering a commodity – wedding photography or posters for instance – and in that case, I believe showing your price online is probably a good idea. After all, if you compete on price, then you want the thing you compete on to be front and center. If you want to sell inexpensive weddings or posters or post cards, etc., then make that your message loud, early and often. If your clients believe there’s no difference between the 8×10″ print you sell and the 8×10″ print your competition sells, then you will need to be cheaper to win the business.

If on the other hand you’re going for the carriage trade – the country club wedding, the fine art buyer, etc., then I believe there’s no need to disclose your price. In these situates, the buyer isn’t money conscious. They aren’t looking for the best deal. They’re looking for the right fit. There’s no need to talk money until they are sure they are comfortable with your style, your approach and your demeanor. In these cases, money is often no object. And if you post a price, it may be much lower than the client was willing to pay. If the client has high expectations and a big budget, your low price may actually COST you the job, because the client may assume that you aren’t qualified to do it since you charge so little.

There are a couple of other considerations. If you want to try the hybrid approach, you can say something like “Our packages start at $XXX.” This helps weed out the lower end price shoppers who think $100 is too much to pay for a job. It also provides wiggle room in case you get a client who values your work, your art and the experience more than she values her money.

If you don’t want to list prices to avoid price shoppers, another way to accomplish is to say something like, “Each assignment is as important and precious as the images we will make for you. Accordingly, we don’t offer “package” pricing, but will instead, work together with you to come to a fair exchange, making sure both parties get what they need from the experience to walk away happy.”

This is a subtle way of selling against package prices since it implies (and you can more directly say it if you prefer) that package pricing doesn’t always meet the client’s needs. What if the client doesn’t want wallets but the package includes them? Best to let the client share what they hope for and then react with a price based on negotiation including knowing their budget in advance.

So I am sorry to say that I can’t tell you yes/no – prices should/should not go on your web site. There’s no one size fits all solution. Think about these concepts and make the best decision you can. If it doesn’t work you can always change it. After all, it’s not a Yellow Pages ad you have to live with for a year.

Written by scottbourne

May 4, 2010 at 8:05 am

Posted in Business

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How to Price Your Photography – Part Three

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Copyright Scott Bourne 1998 - All Rights Reserved

This is a multi-part series appearing exclusively here at GoingPro2010.com. Pricing photography is the second hardest thing you will ever do as a professional photographer. (Finding the right clients is the first hardest.)

Part one of the series is here.

Part two of the series is here.

_____________________________

By Scott Bourne

When you sell or license an image, it is likely that you will have to negotiate the price with a savvy photo buyer. Knowing how to negotiate can save you time, money and help you close profitable deals. Remember that negotiating is just problem solving. Both parties have something they need to accomplish and the negotiation makes it happen.

You must not take ANY of the issues that arise during a negotiation personally. The buyer is supposed to try to get the best deal that he or she can. That’s their job. Your job is the same.

The essential steps in the negotiating process are: establish rapport, gather information, do research, ask questions, and let the buyer do most of the talking. In any negotiation, the person who listens most is likely to gain more. In any negotiation, it’s always very important that you do more listening than talking. Otherwise, you will miss important clues, both physical and verbal, that will help you resolve the deal.

Before quoting a price, you must try to educate the client and build the value of the image you are selling. Make sure that the client understands the effort, time and expense you invested to make this image. If the image is truly one-of-a-kind or was made at personal risk, those factors translate directly into the value of what you have for sale.

Try to encourage the client to place an opening bid. If the buyer is the first one to name a price, I believe you will be rewarded with a higher fee. A good way to open the negotiation process is to ask a question like, “What’s the most you would be willing to pay to use my image or purchase my print?” If you are forced to begin the negotiation process by offering a figure, an alternative is to begin with a number that is twice your standard price plus 10 percent. Once this figure is given, you can work down from there.

But remember that if you give a number first, you run the risk of quoting a price that is much lower than the buyer was willing to pay, and you’ll never know what figure they were willing to pay. So, let your clients do the talking. Then, you should listen, take notes, and preferably wait for them to tell you what they can afford.

If the client has pricing objections, be sure to return to the rapport building and value enhancement stages outlined above. Usually, a price objection really means that there is another piece of information you have not uncovered.  It is likely that there is something else you have not offered that the client really wants or needs. This is why it’s crucial to listen more than you talk and ask plenty of questions to uncover hidden needs.

Once you have taken all the necessary steps, be sure to ask for the order. A surprising number of photographic sales don’t happen simply because the seller has forgotten to ask for the sale.

(NOTE: Negotiating with magazines is not possible unless you are a famous photographer with images that are in great demand. When you approach magazines, understand that you will only get paid their standard rates.)

In the next installment I’ll discuss package pricing and online disclosure.

Written by scottbourne

April 16, 2010 at 7:31 am

Posted in Marketing

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How to Price Your Photography – Part Two

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Copyright Scott Bourne 2010 - All Rights Reserved

By Scott Bourne

This is a multi-part series appearing exclusively here at GoingPro2010.com. Pricing photography is the second hardest thing you will ever do as a professional photographer. (Finding the right clients is the first hardest.)

Part one of the series is here.

_____________________________

Part Two – Pricing Economics

In order to price something well, you must know the economics. Here are some key things to keep in mind:

A) Overhead
B) Profit margin
C) The market you are serving

Calculating your overhead requires that you consider all the costs that are associated with being a professional photographer.  This includes:

A) Equipment depreciation
B) Insurance
C) Rent
D) Licenses
E) Legal fees
F) Accounting fees
G) Payroll fees
H) Salaries
U) Taxes
J) Utilities
K) Production
L) Repairs
M) Printing
N) Postage
O) Office supplies
P) Subscriptions
Q) Professional dues
R) Advertising/marketing
S) Transportation/shipping
T) Travel

Calculating your profit may be a bit easier. You consider your cost of doing business by allowing for a percentage of your overhead to be applied to the cost of each job. From there, mark up your price to include a standard profit margin. This can be based on any number you want but a good starting point is to double the cost of your product (100 percent profit margin).

Now you also need to adjust this figure based on the market type you are serving. Is the image being used in a small or large market? Will thousands of people see it or just a few? What is the perceived value to the client? How does the client plan to use your image? Who is your competition and what choices does your client have besides you for this type of image? Are there 50 photographers in the mix or only two or three? Consider these factors to calculate your fee.

In part III of this series I’ll talk about discounting, negotiation and related issues.

Written by scottbourne

April 12, 2010 at 7:50 am

Posted in Marketing

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How to Price Your Photography – Part One

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Copyright Scott Bourne 2002 - All Rights Reserved

By Scott Bourne

This is a multi-part series appearing exclusively here at GoingPro2010.com. Pricing photography is the second hardest thing you will ever do as a professional photographer. (Finding the right clients is the first hardest.)

It’s very easy to make mistakes when pricing and once they’re made, it’s hard to recover from them. So start out right.

One disclaimer: Not every pricing method works for every photographer. Much depends on the current state of the market and the genre (i.e., wedding, commercial, fine art, food, etc.) I’ll try to stick to some universal ideas in these posts.

Start at the Beginning

You can’t effectively price your work until you understand what it is you’re selling.

You are not selling square inches of paper for the cost of printing them. For some reason, the first element that seems to enter some photographers’ minds when making a pricing decision is the size of the print. This “brick wall” has cost many photographers money. The most important thing to keep in mind is the value of your work, not the size of the print. You build this value by evaluating ALL the factors that go into making a salable image.

So what are you selling? How about your creativity and unique ability to capture something that others do not see? Anyone can buy a camera, but can they capture the image exactly the way you do? How about the time you have invested in training for the moment when you captured the image? That time needs to be taken into consideration. Your mechanic, doctor, accountant, and lawyer all get paid for the time they spend doing the work. Shouldn’t you be paid too? You also have to consider the level of your present technical ability. The casual amateur should not be able to get the most out of the same equipment as an experienced professional. And speaking of equipment, you must also take into consideration the value of your gear. So, as you are deciding how to price your work, make sure you take into account and charge for your logistical skills, experience, time and your ability to translate your client’s desires into a visual statement.

Know what you’re selling before you try to sell it. This will help you avoid many mistakes later.

In the next post, I’ll cover pricing economics.

Written by scottbourne

April 7, 2010 at 5:12 am

Posted in Business

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