Another long post intended for new photographers. For those who hire photographers, this post will also outline the minimum of what to expect when doing business with a professional photographer.
This article offers some suggestions on how to properly prepare a photo estimate or quote for a client. Estimates aren’t usually used for editorial work for newspapers and magazines but should be used for almost all other clients.
Do yourself a favour and always have a paper trail right from the start. It can save you if you do or haunt you if you don’t. The “you” refers both to the photographer and the client.
Photographers: never give an estimate or price over the phone.
Clients: don’t think a verbal estimate is final because it isn’t.
In case you missed it, here it is again: do yourself a favour and always have a paper trail right from the start. It can save you if you do or haunt you if you don’t. The “you” refers both to the photographer and the client.
When, not if, an impatient customer calls or e-mails to ask, “How much for . . . we’re in a rush . . . just give us a ballpark number . . . “, tell them that time is needed to produce a fair and accurate estimate which you’ll send to them as soon as possible. Some estimates might take 15 minutes while others could take a few days. It depends on the complexity of the proposed photo assignment.
Rushing or panicking to give a price off the top of your head will always come back to haunt you in many ways: wrong price, wrong expenses, wrong usage rights, wrong business terms or wrong assignment details.
A photographer needs time to mentally walk through every little detail of the job and to plan for everything that’s needed and for anything that might go wrong. This benefits both the photographer and the customer. Everything has to be budgeted for ahead of time because once a price is quoted, it can be difficult to get more money later, should the need arise.
Back in the year 2000, two other photographers and I each bid on the same project. I tried to work out all the details for, what I planned to be, 18 days of work. I also knew what the same job paid in previous years: $24,000 to $52,000. I bid $25,000 for a scaled-down version of the project.
The second photographer bid $12,000 because he planned to shoot the job over three or four weekends so it wouldn’t interfere with his day job.
The third photographer bid $3,000 because she wanted the work.
As you might guess, the $3,000 photographer got the job. After several days into the job, the photographer went begging for more money because she realized her $3,000 was much too low. How professional was that?
It turned out that the project took much longer than she planned: 21 days. If you do the math, $3,000 over 21 days is $143/day and that included expenses!
After the project was completed, the client never worked with that photographer again. I know this for a fact because the following year, the same client asked me to quote for the new edition of their annual project. The client told me of all the bad things that happened with the $3,000 photographer. I again bid $25,000 for the new project and again lost the job :-)
Before an estimate can be sent, you must know exactly what the client wants and expects. Several phone calls, e-mails and maybe even some meetings may be necessary. Both the client and photographer should not only be on the same page but also on the same sentence. This will benefit both parties.
The photographer needs to ask the client many questions such as:
• The who, what, where and when of the assignment.
• What type of lighting or look is expected? (eg. studio lighting, hotshoe or ambient). Is there available electricity and space for studio lights, if necessary?
• Is a special background needed for portraits?
• Do business portraits have to match any existing pictures with respect to background and lighting?
• Are releases needed for people? Are permits required for locations? Does the photographer need special credentials?
• Does the event have a dress code?
• If the job is outdoors and the weather is bad, what’s Plan B?
• How much post-processing is expected?
• Who will approve and hire the models and stylists, if applicable?
• When does the client need the finished photos?
• Are the photos to be delivered on disc, as prints, or something else?
• How and where will the photos be used and for how long?
Depending on the assignment, there could be many other questions that need to be answered. There’s no such thing as too much information. You’re not a mind-reader so you can’t be expected to see into the client’s head and know what they’re thinking. So ask questions.
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In addition to the above questions, a smart photographer may even ask something more philosophical. Ask the client why they need the pictures they’re asking for. What do they want the photographs to do for their business? What benefits do they expect to gain?
For example: a public relations agency might ask for a head-and-shoulders portrait of a book author. The average photographer will do that picture as requested. But the “philosophical photographer” will learn that the PR agency wants to promote the author’s gardening book. This smart photographer might then suggest that a picture of the author working in a garden would be a more effective promotional tool. Of course, the really smart photographer will still do a standard head-and-shoulders.
By helping the client get the pictures they truly need rather than just shooting what they ask for, a photographer increases their value to the customer.
More value to the client = more money and/or repeat business for the photographer.
Another reason to talk with the client about their photo needs is the opportunity to up-sell.
For example: a corporate communications director asks for “just a headshot” of their CEO for a media handout. The smart photographer might point out the value of also shooting some editorial pictures of the CEO with employees, with products, in front of the office building or on the factory floor. Headshots usually run small whereas environmental/editorial photos often get published larger. Plus, a better selection of images allows for wider media usage.
Larger assignment = more value for the client = more money for the photographer.
The smart photographer might also point out the benefits of using the pictures for corporate web site, annual report, internal publications or trade magazines.
More usage = more value to the client = more money for the photographer.
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Only after the client’s exact needs and the assignment details are known can you can determine a price and send an estimate.
Estimates should be on your letterhead or on a similar-looking estimate form created by the photographer. This document should have logo, business name and all your contact information.
The words “estimate” and “quote” do not mean the same thing. Some customers will assume that estimate means quote but they will never assume quote means estimate. A quote is a firm price which shouldn’t change unless the job changes. An estimate suggests that the price might change but you will have to justify any change to the customer. I suggest you use the word “Estimate” and put that word at the top of your estimate.
If you use “Quote” and the price changes mid-job, you’ll have to notify the customer. If the customer is a large company, you may also have to justify the price increase a second or third time to the accounts people when you later send the invoice.
“Quote” can be used if the job details are exactly known and most likely won’t change. Otherwise use “Estimate.”
Note that using “Estimate” does not excuse you from being sloppy with numbers and does not excuse you from any mistakes you may have made while determining a price.
No matter which word is used, always state that the final costs for expenses will be invoiced in place of the estimated costs shown on the estimate or quote. This is not intended to cover the photographer for sloppy estimating. But it will help if the photographer’s own suppliers change their prices or the photo assignment changes a little bit.
If a price increase is necessary during a job, you must keep the client informed promptly and, ideally, in writing. Why? Because the law might require it.
Consumer laws vary from province to province but here in Ontario, if the price increases by more than 10% of the estimate then the customer doesn’t have to pay the increase unless otherwise agreed.
An organized and thought-out estimate indicates that the photographer is organized and prepared.
• Put the client’s name and contact information on the estimate so there’s no doubt as to with whom you’re doing business. Spelling counts.
• The client may require a purchase order number or other reference number to be shown. Ask.
• Spell out exactly the who, what, where, when, and how of the proposed assignment. Make sure there’s no misunderstanding as to the details of the job. Also, detail the why of the assignment: the usage rights.
Example: A photographer agrees to “shoot five executive portraits for $2,000.” But later, the client says that the executives are in five different locations, they must be shot on five different days and two of them require full studio lighting with backgrounds. The photographer may now be obligated to do this five-day photo extravaganza at their original $2,000 price since no details were specified in the estimate.
• List the fees and expenses. It’s better to provide an itemized list rather than just a grand total so the client can see where the money is going. Photo fees and expenses should be separated so no expenses ever come out of the photo fee. A photographer should not subsidize a client’s business.
If the estimate just says “$1000”, the client may think all of that goes into the photographer’s pocket. But if it were to say: $500 photography, $150 post-processing, $100 equipment rental, $150 prints, $50 courier and $50 mileage, then the client might better understand why the price is what it is.
• Put a closing date on the estimate. State that the estimate is good for 30 days or whatever is appropriate. A client should not expect the same pricing a year later.
• Make it clear that the estimate is valid only for the job description and usage rights described in that estimate. If a client changes the job or usage, they should not expect the price to remain the same.
• The photographer’s Terms and Conditions (T&C) must be included with the estimate. It’s important to inform the client about the terms of business early in the process. The T&C of a business transaction cannot be introduced after the fact. When sending an estimate, make sure the client knows a T&C is attached.
• Try to use industry-standard terminology consistently in all estimates, invoices and T&C’s.
The estimate (paper or PDF) is always sent with a cover letter (paper or e-mail). Attach a business card if sending a paper estimate. For example only:
Hello Jane,
As we discussed, here is the photo estimate for coverage of the ABCD Convention in Toronto on January 25, 2010. The planned photo coverage includes the morning keynote speaker, the afternoon workshop, and the evening reception. [Repeat the assignment back to the client to make sure there are no misunderstandings]
Please note that the estimate is two pages. The first page shows the fees and costs. The second page is the terms of business which I think is straightforward and easy to read. Contact me if you have any questions about this estimate.
Since I’ll have my laptop with me, all pictures made during the morning portion of the event will be ready to go by early afternoon. You can have them on your web site right away and you won’t miss your afternoon deadline for media distribution. [This extra optional paragraph is added to continue selling your benefits to the client].
Give me a call after you’ve had the chance to review this estimate. [Ask for a response]
I look forward to working with you! [Start some positive thinking]
Best regards,
Carl Camerabag
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If the client accepts the estimate and you get the job, the client should sign, date and return a copy of the estimate to the photographer. While this may not always be possible and isn’t legally mandatory, it does offer a solid piece of paperwork should the need arise. Verbal contracts are legally binding but, of course, are tough to prove. E-mailed agreements can also be legally binding.
Wedding photographers get clients to sign contracts. Home contractors get contracts signed. Auto repair shops get work orders signed. Driveway pavers get contracts signed. Cell phone carriers get contracts signed. Most newspapers require freelancers to sign the paper’s contract. What does all this tell you?
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It’s a common practice to get a 50% deposit upon acceptance of an estimate for commercial jobs. Wedding photographers often get a 33% deposit upon acceptance, 33% on the wedding day and the reminder due when the photos are delivered.
If an assignment will have high expenses, always get a deposit at least equal to these expenses before the job starts. Otherwise if things go bad, you could be stuck with a large expense bill.
Always get a deposit from out-of-province and out-of-country customers.
It’s never a photographer’s job to finance a customer’s business. A photographer is not a bank. When asking for a deposit, you’re not begging for money nor asking for a loan. Getting a deposit or even full payment in advance is a common and accepted practice used by many types of business.
On your estimate, state that an XX% deposit is required upon acceptance of the estimate. Further state that the balance will be due within, say, 14 or 15 days of delivery. Some companies will refuse anything under 30 days but that’s not a deal breaker. Try to get paid as soon as possible but be reasonable. While some companies can pay within a few days, there are some that do require 30 days.
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You should save all estimates whether or not you got the job. You should have a record of what you promised someone. Keeping all past estimates will provide you with a reference source for future estimates for both new and repeat clients.
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Sometimes a customer might talk about a competitive estimate (or bid) or a comparative estimate (or bid). In general, when someone asks for a competitive estimate, they’re looking for a photographer with the lowest price. Some government ministries and organizations are required to always go with the lowest bidder. If someone asks for a comparative estimate, they’re looking for the photographer with the best service for price and not necessarily the lowest price.
More often though, a customer just asks for an estimate or quote and they decide however they wish to decide. Lowest price doesn’t always get the job. A smart client knows that lowest price doesn’t always mean the best value for their business.
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For some commercial and corporate jobs, a client or its agency may “triple bid” a job. This simply means they are required to get quotes from three photographers.
For high-cost commercial jobs, a client or its agency may be required to have a cost consultant review the three quotes. This consultant will look at every line item in the quotes to make sure that each item is necessary and the price for that item is reasonable. The consultant could request that an item be removed, its price lowered, or an alternative be found.
With three quotes in hand, a client or its agency will often conduct a conference call (“creative call”) with each photographer. The purpose of this phone call is to understand each photographer’s approach to the job as well as to feel out the photographer’s personality and compatibility with the client or agency. I’ve seen this process done by e-mail where the client or agency sends a list of questions to each photographer and also requests to see additional photos from the photographer.
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Another type of estimating is the “Request For Proposal” (RFP). In general terms, this is when a company asks photographers to submit their plans on how they would provide photography services for a specific situation and what it might cost. Usually in this situation, the company has decided to hire a photographer and has some budget available but the company isn’t sure on how to proceed.
For example, a large sports event that wants photography coverage of its 10-day event might ask a few photography businesses how they would do the photography and what it might cost. The RFP will usually include the dates, locations and some basic requirements.
One photo business might answer the RFP by offering five photographers to cover the event. A second photo business might suggest six photographers, two videographers and a web site to display the images and videos. A third photo business might offer four photographers, one editor, an on-site booth to sell prints, and a web site to sell t-shirts, posters, etc. These three photo businesses would most likely quote very different prices. In an RFP, the client is under no obligation to choose any proposal.
I don’t think RFPs are that common in photography although some sporting events and various government departments might use them occasionally.
There’s also Request For Quote (RFQ) and Request For Information (RFI) both of which should be somewhat self-explanatory.
