As a photographer, which would you prefer: lots of low-paying customers or only a few high-paying customers? For example:
Photographer A shoots three business portraits every week at $100 each. His annual gross revenue is 3 X 52 X $100 = $15,600.
Photographer B does only one business portrait every other week at $600. Her annual gross is 26 X $600 = $15,600.
Which is better: low price with high volume or high price with low volume?
One problem with charging low fees is that the photographer will work themselves out of business. The wear-and-tear on themselves and their equipment will take a toll because a photography business is not scalable. The only way a low-priced photographer can earn more is to work more. But there are only 24 hours in a day.
If a photographer sits down and works through their numbers, they will see that they simply cannot afford low-paying customers. The photographer’s cost of doing business is a real number that can’t be ignored or wished away.
Some photographers will point out that low-paying customers are easier to find than high-paying ones. Absolutely true. But the more time a photographer spends chasing and working for low-paying customers, the less time they have for better-paying clients.
A photographer should choose their path carefully. Should you take the low road which tends to be flat or slopes downward, or should you take the high road which always seems to be uphill?
In neuroscience, “high road” and “low road” were terms used by Dr. Joseph LeDoux to describe the pathways of fear. The low road initiates the fear response. It’s a reactive, knee-jerk response to stimuli. The high road is a calmer, more analytical response. The low road is the emotional response, the high road is the smarter response. Guess where I’m going with this.
The first reaction of a photographer who fears they won’t get customers is to lower their prices. But this will hurt their business and cause even more fear and even lower prices. Photographers who use fear-based pricing will always lose.
Instead, a calmer, smarter response is needed. Base prices on reason and fact, not emotion. A photographer has nothing to lose by taking the high road.
