Some photographers don’t understand the value of nothing.
Customer: I want to buy this $1,400 refrigerator. After you deliver it to my house and install it, I’ll pay you $200. How does that sound?
Store clerk: Our cost on that refrigerator is $800. If I accept your $200 then we’ll be losing $600 plus the expense of delivery and installation, and we won’t make any profit.
Customer: But isn’t $200 better than nothing?
Store clerk: Of course not. Forget it.
Now let’s change a few words.
Customer: Our company wants your $1,400 business portrait package. After you shoot, edit and deliver the pictures, we’ll pay you $200. How does that sound?
Photographer: My cost of doing business is $800/day and that doesn’t include any job expenses. If I accept your $200 then I’ll be losing $600 plus the job expenses, and I won’t make any profit.
Customer: But isn’t $200 better than nothing?
Photographer: Yeah, you’re right. I’ll take the job.
Sometimes it’s better to earn nothing than to lose something. Time spent on money-losing jobs is better spent on money-earning marketing (i.e. finding new customers).
Because the purpose of business is to create a customer, the business enterprise has two – and only two – basic functions: marketing and innovation. Marketing and innovation produce results. All the rest are costs. Marketing is the distinguishing, unique function of the business.
