pricing

Don’t Discount Yourself

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[Added December 2016: the company mentioned in this post 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.
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Check Your Focus

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A photographer’s frame of mind matters a lot when pricing a photo assignment or negotiating with a potential customer. The photographer could be thinking along the lines of, “If I get this job, I’ll make $4,000,” or they might be thinking, “If I don’t get this job, I’ll make nothing.”

The former train of thought (being “promotion focused”) is about trying to maximize gains. The latter (being “prevention focused”) is about trying to minimize risk and prevent loss.

Neither type of focus is better than the other. We often switch from one to the other depending on the circumstances. But research has shown that when pricing or negotiating, being promotion focused tends to lead to better outcomes.
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More than meets the eye

Many photographers charge a minimum fee for their location work. This minimum might range from a couple hundred dollars to much higher, depending on the situation.

Before you scream “Unfair!”, keep in mind that most tradespeople and some other types of businesses also charge minimum fees.

Locksmiths, plumbers, electricians, furnace repair, moving companies, carpet cleaners, etc., all have minimum fees just for showing up at your front door. This minimum often goes up on evenings and weekends. My locksmith charges a minimum $90, my plumber has a $140 minimum. At a newspaper where I once worked, to get a technician to come service the film or print processor cost a minimum $600.

Businesses charge minimum fees to help cover the time and cost of travelling to the customer’s location, setting up equipment (if applicable) and providing at least a minimum amount of service.
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Being Too Expensive Is Really An Opportunity

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A customer may directly or indirectly tell a photographer that their price is too high. When this happens, the photographer has to understand why the customer is saying this.

A customer may say the photographer’s price is too high when, in reality, the customer is undecided or confused about the offer. It’s easier to say, “it’s too expensive” than “I’m not sure how I can benefit from this photography.”
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Choosing Less Satisfaction

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Would you:

— Buy a pair of shoes based only on price?

— Buy a book based only on price?

— Decide on concert tickets based only on price?

— Choose a restaurant based only on price?

— Plan a vacation based only on price?

Why would anyone choose a photographer based only on price?

A 2013 study by J.D. Power looked at customer satisfaction with North American car rental companies. A key finding was that customers who chose a car rental company based on lowest price were the least satisfied.

This parallels a similar 2013 North American hotel study which found that consumers who chose a hotel based on lowest price were also the least satisfied.

Would any customer be satisfied with the lowest-priced photographer?

 

When is the price of photography expensive?

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“Aren’t your photography prices too high?”

Compared to an amateur photographer, a Craigslist photographer, or an inexperienced photographer then I certainly hope that my prices are much higher than any of those.

But I’m not expensive when compared to a photographer with similar experience and knowledge.

I quoted $1,560 for a job last month that required eight business headshots. A few days later, someone from the company called to let me know that their project was cancelled. She said that she had received quotes from four Toronto photographers, including myself, and all were within $300 of each other. Unfortunately, she continued, “My boss budgeted only $500. I told him it wasn’t enough!”
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Marginally Cheaper By The Dozen

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You can tell that it’s getting close to year’s end as companies rush to get work done or hurry to spend any remaining budget. I’ve received nine inquiries for business portraits in the past two weeks, and each job had to be delivered and invoiced before December 31. The requests ranged from two to thirty business headshots.

One potential customer asked why I don’t offer a bigger volume discount for multiple business portraits. They wondered why the cost to shoot 30 business headshots didn’t drop to under $50 each.

Here’s why:
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