Over the past month, I lost photo jobs to:
1) A photographer who quoted $1,200 for a two-day shoot, in two cities 100km apart, consisting of 22 business portraits, 11 environmental portraits and up to 66 finished images delivered.
2) Someone who quoted $1,500 to photograph a four-day business conference.
3) The “best professional headshot photographer in Toronto” who, according to the customer, quoted $3,000 for 120 business headshots. That’s $25 per headshot.
(When you have a quote turned down, try to ask the customer what the other photographer quoted. Sometimes the customer will refuse to divulge what they’re paying but tell them that you’d like to know where your price stands.)
Was I disappointed not to get these jobs? Yes.
Am I upset? No.
I am wondering how these photographers make any money.
How can you shoot a business conference for four days, edit for a few days more and charge only $1500? How can you do $25 business headshots and why? Even the photo companies that are behind the Sears Portrait Studio and the Walmart Photo Studio charge more than this.
These low-priced quotes suggest that these photographers price their work based on time and not on value to the customer. But then again, maybe these photographers aren’t providing any value.
Marginal Cost and Marginal Value
It’s important not to confuse marginal cost with marginal value. As the size of a job increases, some customers expect a volume discount and some photographers feel obligated to offer a discount. Why?
Does a restaurant discount the cost of each meal if there are more people in your party? The time and cost to prepare each meal is the same no matter how many people are at your table. Plus the value of each meal is the same, it doesn’t decrease as more people are served.
Would a barber offer you a discount if you show up with all your friends who also want haircuts? The time and cost to cut someone’s hair is the same no matter how many people are in the shop. Plus the value of each haircut stays the same, it doesn’t decrease as more people get their hair cut.
Would a dentist give you a discount if you and all your business colleagues decided to get your teeth cleaned? The time and cost to check and clean each person’s teeth is the same no matter how many people are examined. Plus the value of each dental cleaning stays the same, it doesn’t decrease as more people get their teeth examined.
Cheap photographers forget that it requires the same time and effort to photograph each subject no matter how many people or how many hours. Plus, for example, the value of each business portrait is the same, it doesn’t decrease as more people are photographed.
Value is a two-way street. A well-paying customer and a low-paying customer each cost you the same time, same effort and same overhead. The only difference is that the former provides much more value to you. But that’s assuming you value you.
Hi, Warren,
Thank you for your article, it is interesting, as always. I fully agree with you about the cost of photos. But I want to add that it only works (your message not to reduce prices) for photographers who have been on the market for a long time.
For a new photographer in the market (immigrant) or a newcomer who does not know the prices for the photo session, and who will be happy to have any first order it doesn’t work. Without any work, they will take orders to get at least some money. And there will always be employers who, for these newcomers, will offer $ 14 per hour for cover sports events, not 50+….two way street
Hi Anatoliy,
Very true but I’m hoping these photographers will understand how much money they are leaving on the table. These photographers have to understand that they are running a business not a hobby. No business sells its products or services at a loss unless it’s a “going-out-of-business” sale.
I was just reading a photographers’ forum where some photographers said they price their work based on what camera gear they own! One photographer said he only has a Nikon D5500 so he always charges less ($40 per photo with all rights). Another person asked what he should charge based on owning a Canon 700D, 18-55mm lens, a 50mm lens, a tripod and Lightroom.
I once knew a photographer who based his prices on the number of flashes he used: no flashes (available light) – $150; one flash – $300; two flashes – $450; and three flashes – $600. It didn’t matter what the photography was, his price depended only on the number of flashes.
My point is that the photographer is not the customer. The customer is the customer and customers have different priorities and values than the photographer.
Also remember this. Do you want to be just anybody? Why be the cheapest photographer in town? Photo businesses have been around for over 100 years and we know it’s *impossible* for a photographer to discount or lowball their way to success. If it were possible, wouldn’t all other photographers be doing it?