pricing

Check Your Focus

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When pricing a photo assignment or negotiating with a potential customer, the photographer’s frame of mind matters a lot. 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.

Overall, neither type of focus is better than the other and 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 (e.g. earn more when selling or pay less when buying).
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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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When a customer directly or indirectly tells a photographer that their price is too high, the photographer has to understand why the customer is saying this.

Sometimes a customer will say that 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 your 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 the end of the year as companies rush to get work done or hurry to spend any remaining budget. In the past two weeks, I received nine inquiries for business portraits 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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Typecasting

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There’s a quote attributed to French author Antoine de Saint-Exupery that, roughly translated, says:

When you want to build a ship, don’t start by gathering wood, cutting boards and distributing the work, but awaken in men a desire for the vast and endless sea.

A similar philosophy could apply to photographers who seek quality customers. Instead of passively accepting any customer at any price level, it may be better to first teach customers to understand and appreciate the benefits of quality photography. Educated customers will expect more and pay more.

There are four types of customers:
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