[Added December 2016: the company seems to have gone out of business.]
A newspaper article in The Province reports on a new Vancouver-based company offering customers the chance to book last-minute photo sessions at discounted prices. The idea is simple: photographers are, in theory, willing to offer discounts to fill empty slots in their schedules, and the company acts as a middleman, connecting customers with these last-minute deals.
At first glance, this might seem like a win-win situation. The customer gets a discount, and the photographer fills an empty slot. However, a closer examination suggests that the real winner here might be the company itself. (For fun, check out who’s behind this business.)
While last-minute discounts might work for amateur photographers, part-time photographers with day jobs, and those who practice dump-and-run photography (more on this later), it’s a poor strategy for professionals. In fact, it’s similar to why discount platforms like Groupon can be bad for photographers.
The Concept of Marginal Cost
Selling unsold inventory — like empty airplane seats, hotel rooms, or event tickets — works well when the marginal cost is low. But photographers don’t have unsold inventory. You might think of your “extra” time as unsold inventory, but time can’t be replenished. In fact, its value increases as it passes.
Most photographers don’t just sell time; they sell their *value*. This is a crucial distinction. (More on this later).
The marginal cost for a photographer isn’t just the time spent on a shoot; it also includes *ongoing* expenses like insurance, equipment maintenance, rent, utilities, etc. In addition, a photographer’s initial investment (gear, computers, software, car, etc.) can cost tens of thousands of dollars. Once you’ve made that initial investment, (and ignore the fact that you may still owe a ton of money), the cost for subsequent assignments may go down, but it’s still far from zero.
Also, I will argue that a photographer’s marginal cost includes themselves unless they’re a commodity (more on this later).
Volume vs. Last-Minute Discounts
Let’s clarify the difference between volume discounts and last-minute ones. For instance, a photographer might offer a discount for a high volume of business headshots. This makes sense because the marginal cost per headshot goes down (but never to zero) when many people are photographed in the same location at the same time.
In contrast, a last-minute booking doesn’t lower a photographer’s marginal cost whatsoever. The time, effort, and equipment required for a last-minute job are the same as for a scheduled shoot, yet the discount implies that these efforts are worth less.
To illustrate, consider a pro sporting event in a 20,000-seat arena. The total cost of operating the arena is the same whether there are 20,000 attendees or just 200. Therefore, the marginal cost of an additional ticket is essentially zero, making last-minute discounts logical. In fact, the arena makes money by selling at discount rather than not selling at all.
However, a photographer’s costs don’t work the same way, which is why last-minute bookings don’t make sense for most professionals.
Key Considerations
Pricing by the hour makes you a basic wage earner with no recognition of your skill, creativity or experience. It makes you a commodity. But pricing by value means you can be properly compensated.
• Pricing by the Hour vs. Pricing by Value: Charging by the hour treats photographers as wage earners, focusing on time rather than skill, creativity, and experience. In contrast, pricing by value allows photographers to be compensated based on the service and expertise they offer.
• Time vs. Value: The value of photography doesn’t depend on the day of the week. A portrait that’s done next month will have the same value to the customer as a portrait done tomorrow. Whether the photography is done tomorrow or next month, it will require the same equipment, same creative effort and same marginal cost. So why should one session be discounted?
• Higher Value for Last-Minute Jobs: Contrary to the discount model, I’ve found that last-minute jobs often warrant a higher price. In fact, I typically charge an additional 50%-100% for rush jobs because they require quick turnarounds, creating added value for the customer. This is similar to how other businesses charge a premium for urgent requests. Of course, a photographer doesn’t have to charge more for a last-minute job but there’s no reason to charge less, unless you’re an hourly wage earner with no added value.
• Discounting Risks: Some photographers believe that any job is better than better than none. However, if you routinely offer a $750 job for $250, you’re actually losing money. If your price is flexible to this extent, it suggests you’ve been overcharging previous customers or your pricing strategy is flawed.
• The Low-Paying Customer Trap: What if you do a last-minute discount job and that customer comes back later for more photography? They will be expecting the same discounted price again. Sure, you can use the excuse that the discount was only for a last-minute booking. The customer will then just book last minute again and you’ll lose again. A low-paying customer always leads to more low-paying customers. Always. A low-paying customer never magically becomes a high-paying customer. Never.
• Commoditization of Photography: Discount models like this turn photography into a commodity, encouraging customers to shop by price rather than quality. This undermines the value of your work and hurts the industry as a whole.
• Lack of Control: If you read the company’s terms of service, you’ll notice that they require photographers to hand over all photos from a session. This “dump-and-run” approach strips photographers of creative control and customer control. When you give up control, you also give up money.
• Extra Costs: The photographer has to pay the company for editing, marketing, and other services. In essence, you’re subsidizing someone else’s business, when you could be doing these things yourself — keeping all the revenue, building your own brand, and establishing a direct relationship with your clients.
• The Company’s Lack of Investment: The company has no skin in the game. If you’re going to “partner” with another business, you need them to be fully invested. No skin means no loyalty and no liability.
• Lack of Guarantee for Photographers: The company doesn’t guarantee any photographer’s work, and customers can’t preview or choose their photographer. This is a red flag for both photographers and consumers.
• No Growth for Photographers: When, not if, the company wants more money, its options are either to find more customers, raise prices to the customer, or lower the money paid to photographers. Guess which one is easier? (Hint: which option do stock picture agencies always choose?)
A Better Strategy
Rather than relying on last-minute bookings, a more sustainable strategy is to use any downtime for proactive marketing. If you’re experiencing slow periods, it’s likely due to ineffective marketing. Investing in targeted outreach, networking with fellow photographers, or working on your own projects can help attract higher-paying clients and build your brand.
Sure, a last-minute job might provide quick cash, but it’s not a long-term solution for a thriving photography business. If you keep accepting discounted work, it can signal larger issues within your business strategy.
Ultimately, all the discounted jobs you do won’t help your business grow in the long run. They’re neither sustainable nor scalable. If they were, every photographer would be doing it.
Instead, use your downtime for activities that help build your business, whether that’s improving your marketing, learning new skills, or investing in your own projects. These steps will help you attract better clients, earn more money, and avoid the trap of discounted, last-minute work.
