Price is set by you, the photographer, but value is perceived by the customer:
Perceived value = Expected benefit(s) – Perceived cost
where Perceived cost = monetary cost + the effort needed to make the purchase.
If Expected benefits = Perceived cost, then value is zero. The customer probably won’t buy.
The money we exchange for a service or item isn’t based on how much it cost to make, how hard it was to produce or how much the producer likes it.
That’s hard to hear, because when we make something, we spend most of our time thinking about those very things.
Price is based on the purchaser’s worldview and situation, not the producer’s. The price paid will always be less than the value it creates for the purchaser. And the price is never more than the amount the purchaser can exchange.
If the price tag asks for more than that, no purchase happens.
To make a sale, benefits must exceed the cost to the customer. And those benefits do not include owning some photographs.
Customers do not buy photos, instead they buy outcomes or the satisfaction of a want. What is the desired outcome? Ask the customer!
Instead of asking a potential customer, “What do you need,” ask, “What are you trying to accomplish with these photos?” Your job is to ensure the customer gets the most value possible.
Think with the customer, but not necessarily like the customer. Talk honestly with a customer about their expectations and how you plan to meet (or exceed) those expectations. This will create trust, show that you’re focused on results, help your service be seen as an investment, and reduce the customer’s price sensitivity.
The successful producer of an article sells it for more than it cost him to make, and that’s his profit. But the customer buys it only because it’s worth more to him than what he pays for it, and that’s his profit. No one can long make a profit producing anything unless the customer makes a profit from using it.
– US lawyer and politician Sam Pettengill (1886-1974)
