Thoughts on Pricing
I have spent a good deal of my time this year on education. I can not stress the importance of education in whatever career path you choose. The only way to succeed is to continue learning all you can, and applying what you have learned to your business.
One of the big topics I hear a lot about is Pricing. Every seminar, convention, webinar, etc I have listened to have all talked about it. And all the pros are saying the same thing - raise your prices. Their theory is that when we raise the prices of our goods and services, we are increasing its perceived value. Also, by raising our prices we will be cutting out the "price-sensitive" buyers - those just out looking for a good deal (and can often be a nightmare to work with!). We will be bringing in fewer clients, but more high-end, so we will actually be making a higher profit.
All this makes sense. There really is a TON of work that goes in to a great photography session. You can visit here to find out just what goes in to an average session. Yeah, I really do spend that much time and energy on all my sessions! So, if a photographer is offering a full one hour session with a disc of all the images for $50, how much money do you think they are actually making (or even how much time are they spending making sure all your images look flippin' awesome?)? The answer, of course, is none. They are actually paying to take take your pictures! That might seem nice to you, but really, lets face it. Photography is a business, and if we don't make a profit, we can't stay in business!
But then I see this other side of it. If we have all these photographers raising their prices and catering to those high-end clients, what about those left in the middle? I know of lots of great people who are not particularly wealthy, but they still want great photos (hey, I am one of them!). These are people who recognize and enjoy great quality work, but simply cannot afford to go to a high-end studio. Trust me, if I could, I would be taking my family to Busath Studios in a heartbeat! Maybe someday.
I am a little concerned about the options for these middle class folks. They can either save up their money and go to the high-end studio and get a few exceptionally nice prints, or they can pay a small fee for an entire CD of so-so images. Where is the middle ground? What if these people want great photos and great service, and they want more than a couple of nice wall portraits? Where do they go?
This has been tumbling around in my head for some time. I won't lie, I would LOVE to be one of those "high-end" photographers that makes a 6 figure income. But I am a LONG way off from that! But at the same time I feel I have some exceptional clients who I thoroughly enjoy working with. I know that if I started charging much higher rates, I would probably lose all of them, and I don't want that to happen!
All this being said, I have recently felt the need to raise my prices a little. Not too dramatic, mind you, but enough that I can make a profit and stay in business:-) My new price list will be going live on my website shortly. Even this small increase was a tough decision for me, but in the end I have to do what is best for my business, and even my small expenses outstripped my income.
So what are your thoughts on this topic? According to the pros, all photographers should be striving to cater to high-end clients only. Do you think this is right? Or do you feel there is a successful market in other income brackets as well? Can there be a "happy medium?"
One of the big topics I hear a lot about is Pricing. Every seminar, convention, webinar, etc I have listened to have all talked about it. And all the pros are saying the same thing - raise your prices. Their theory is that when we raise the prices of our goods and services, we are increasing its perceived value. Also, by raising our prices we will be cutting out the "price-sensitive" buyers - those just out looking for a good deal (and can often be a nightmare to work with!). We will be bringing in fewer clients, but more high-end, so we will actually be making a higher profit.
All this makes sense. There really is a TON of work that goes in to a great photography session. You can visit here to find out just what goes in to an average session. Yeah, I really do spend that much time and energy on all my sessions! So, if a photographer is offering a full one hour session with a disc of all the images for $50, how much money do you think they are actually making (or even how much time are they spending making sure all your images look flippin' awesome?)? The answer, of course, is none. They are actually paying to take take your pictures! That might seem nice to you, but really, lets face it. Photography is a business, and if we don't make a profit, we can't stay in business!
But then I see this other side of it. If we have all these photographers raising their prices and catering to those high-end clients, what about those left in the middle? I know of lots of great people who are not particularly wealthy, but they still want great photos (hey, I am one of them!). These are people who recognize and enjoy great quality work, but simply cannot afford to go to a high-end studio. Trust me, if I could, I would be taking my family to Busath Studios in a heartbeat! Maybe someday.
I am a little concerned about the options for these middle class folks. They can either save up their money and go to the high-end studio and get a few exceptionally nice prints, or they can pay a small fee for an entire CD of so-so images. Where is the middle ground? What if these people want great photos and great service, and they want more than a couple of nice wall portraits? Where do they go?
This has been tumbling around in my head for some time. I won't lie, I would LOVE to be one of those "high-end" photographers that makes a 6 figure income. But I am a LONG way off from that! But at the same time I feel I have some exceptional clients who I thoroughly enjoy working with. I know that if I started charging much higher rates, I would probably lose all of them, and I don't want that to happen!
All this being said, I have recently felt the need to raise my prices a little. Not too dramatic, mind you, but enough that I can make a profit and stay in business:-) My new price list will be going live on my website shortly. Even this small increase was a tough decision for me, but in the end I have to do what is best for my business, and even my small expenses outstripped my income.
So what are your thoughts on this topic? According to the pros, all photographers should be striving to cater to high-end clients only. Do you think this is right? Or do you feel there is a successful market in other income brackets as well? Can there be a "happy medium?"
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