Yesterday I was exchanging e-mails with a photographer who shot a commercial job two months ago. The photography has been completed, the photos have been delivered, and the customer has paid. Two months ago. His customer is using the photos in transit ads. The photographer asked if he should now charge more for this usage.
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Getting Paid
There have been only three times when I had difficulty getting paid. All were in the mid-1980s when I was just starting out:
1) My first corporate customer was a very small pharmaceutical company. The company wanted the photos shot on transparency film because the images were for a slide presentation. I asked if they also wanted prints. No, they did not want prints, only slides. The job was done and the slides were delivered. The customer refused to pay because I did not deliver prints.
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Saving For The Future
How long should you save image files after they’ve been delivered to the customer?
A photographer should inform customers about their photo archiving policy. How long will you keep the photos? Can a customer depend on you, for years to come, to redeliver the photos? If you promise to archive photos but you lose them, can a customer sue you?
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Immediate Expensing and Income Tax
Right now, most Canadian photographers will be doing their annual income tax. Some business expenses are not deducted in full but instead they are depreciated over time. Capital Cost Allowance (CCA) is used to depreciate the value of photo equipment, computers, and other business purchases that have continuing value.
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Dancing On The Ceiling
All products, except luxury items, have a maximum price set by market conditions. A loaf of bread costs up to about $8. A bakery can’t increase the price to $20 or $30 no matter how good that bread is. The price of bread has a ceiling. To make more money, a bakery can expand into products that have a higher price ceiling such as cakes and pastry (which might be considered luxury items).
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The Art Of The Estimate
There are plenty of clients who don’t actually want the cheapest choice. They want the best one, and a powerful estimate is the clue they use to choose.
– Seth Godin, author and marketing strategist
An estimate doesn’t have to be just a page of numbers. You can use an estimate as an additional marketing tool to help persuade a potential customer. Customers need more than numbers to understand you and your business. If you can sell yourself as being more knowledgeable, more reliable, and less risk, then price becomes secondary.
Differentiate yourself from other photographers not by having a lower price or even a similar price, but by being exactly what they’re looking for. And this is done with words, not numbers, on an estimate. Sell yourself and not the numbers.
Seth Godin’s full blog post about estimates.
Pricing for Business Event Photography
A few months ago, I was asked to quote for a three-hour business event. So I quoted for a three-hour event.
Two days before the event, the event organizer said they needed me onsite 45 minutes sooner to do some early photos. They also wanted me to stay after the event so I could edit “one or two pictures” right away for their social media.
On event day, I arrived one hour before the start and, as requested, I was ready to go 45 minutes before the start. But the event was 45 minutes late getting started. It also ran 1-1/2 hours longer than planned. After the event they wanted some group photos. Then the “one or two pictures” that they needed right away became 16 images. What was originally supposed to be three hours onsite turned out to be more than 6-1/2 hours.
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