Growing Pains: How Should You Price Your Photography

While reading some information on photographer's Rod Evan's Facebook page, I came upon this link to an amazing article about how portrait photographer Jodie Otte of Black Horse Studio answers the question: "How should I price my photography?" Otte was a guest blogger on the MCP Actions Blog. I found the ideas both right on and also worrisome because if her model is correct, then I am a long way from ever being able to be a full-time professional photographer. I'm definitely one of those kind of people who worry about charging too much and making sure people can afford me, especially when I - along with everyone else - is reeling from the economic downturn. But Otte carves away emotion and gets back to the practicality of what is essential for having a successful business....and that means you've got to set your prices to make a profit!


Here is Otte's advice:

As a general observation, I am shocked at the low prices of a lot of photographers - especially new photogs, and I hope this isn’t offensive to anyone, but what is more important than your photography, is your business skills when running a business. This industry is completely saturated with underpriced photographers - many talented. Think of this — the stats are something like 95% of all photography businesses fail. What makes you feel that you should be in that 5% that does not fail?

Business sense, that’s what. Have you marveled at a local photog who does really boring work, yet they are always busy and their prices are more than yours? Why is that person a success and you can barely bring people in even though you are always hearing how everyone loves your work… It’s because he/she knows how to run a business.

Everyone asks - how should I price? so and so has $25 8×10s, so I can’t go higher than that. Okay, so research all the local photogs and find out what they are charging. Use that as a guide, but understand, many photogs do not have their pricing on their site, and there is a reason for that. You need to price yourself for profit. If you are new and still portfolio building, something that is great to do is set your prices based on turning a profit (as I will describe below), then sure, discount your prices and be CLEAR that you are portfolio building. That way, when you are done PBing, you can return to your already advertised REAL prices, and you won’t make your previous customers angry because they knew at some point you would move on to them. The problem with starting too low is when you start realizing you aren’t turning a profit, and you start to raise them, you are going to be without business because people will get angry with you for raising them. So be honest and upfront and clear about what exactly is going on, and you will continue to have clients who have built a relationship with you and understand what’s going on. Don’t drop a bomb on them, by any means. Once they have invested with you, they are invested, it’s a relationship, maintain it.

Another thing - if you do not need the money right now because your spouse is the breadwinner, now is a GREAT TIME to build an exclusiveness about your business. You don’t need the money, so why not price yourself to make it well worth it. So you get a few sessions a month. You are PAID WELL for your time away from your family, and then as word of mouth builds, you are viewed as a higher priced, more exclusive photog - and that can be quite desiring for many crowds.

The thing about running a business - you have to take emotions out of it. By emotions, I mean “I want people to still be able to afford me” “I don’t think I am good enough” “I’ve never done this before” “I can’t afford me (I beg to differ - how much did you spend on your living room furniture? $3,000? How much did you spend on that big screen TV with surround sound? I have news for you - pictures last longer and are more important in the longrun. Clients will not value your work, if YOU don’t value it. News Flash: WalMart’s a la carte pricing is $50 for an 8×10. I’m not talking about the coupons. I’m talking about for one of those crappy ugly 8×10 a la carte backdrop pictures of your child with a fake Christmas tree, where you only got 15 minutes to get your child to smile printed on substandard photo paper is $50. You offer WAY better than that to your clients, don’t you?

When I see some charging $200 and that includes all the digital files or even some of the files or even a $100 print credit with $20 8×10s, I cringe because that photographer can be making less than minimum wage and has no idea.

Do you have a reason for pricing the way you do? Do you just toss it out there and hope for the best? Or do you have concrete logical reasoning for why you are pricing the way you are. You need to take your EMOTIONS out of this and think like a business owner. No business owner should be making less than minimum wage. You really need to think about business management (classes would be a great idea).

So how do you price? Work backwards to figure out what clients need to spend. So many people want to skim over this because they are “arteests” and think it’s all about the talent, not about the pricing structure. WRONG! Artists work from emotions, and you better step outside of that for a moment and keep those emotions and business separated, or you will BE a starving artist who will one day look back and say “my kids are grown, where did the time go? I sat in front of that computer for hours for less than minimum wage… I wish I had that time back with my kids….” No one looks back and says “I wish I would have worked more away from my family….”

Ask yourself how much you want to make per year. My personal goal is always well into six figures, but I’ll back this down to a more reasonable goal for newbies.

Okay - let’s say you want $50,000 SALARY for a full time BUSINESS OWNER. When figuring this out - what do you value your family time at? $50 an hour? $100 an hour? $10 an hour (REALLY???? You may regret that one day years in the future - don’t set yourself up for regrets) Don’t laugh - some people do this for $10/hour and then pay a babysitter $5/hour. It boggles my mind.

Work backwards to figure out your pricing structure.

1. Income desired is $50,000. Again, you are a business owner, you don’t need to be working for pennies. Add 35% to that (that’s for your taxes as a sole proprietor). Yes, you need an additional $17,500 to cover your taxes. So now your income has to be $67,500 as you are going to owe Uncle Sam a nice chunk.

2. Add your expenses to your desired income - $67,500 plus $25,000 equals $92,500 -Don’t think $25,000 is a lot for business expenses. That’s not a lot at all. Last year alone, my expenses were $70,000. Expenses means everything - gas money or mileage, office supplies (paper, ink, packaging, file folders, pens, pencils, envelopes, sticky notes, light bulbs, batteries, whatever….etc.), office equipment (computers, software, actions, mouse, keyboard, file cabinets, books, internet etc. etc. etc.), studio supplies and equipment if applicable, portions of gas and electric bills, telephone bills (if working out of home, it’s portions of this vs. full amounts if you have a studio) photography supplies and equipment (cameras, lenses, memory cards, lens cleaning supplies, flash, strobe, softbox, camera bags etc. etc.), packaging supplies (bags, boxes, bows, tape, labels, etc.), postage, props -yes, all those baskets, newborn hats, wraps, backgrounds, chairs, stools, etc., marketing supplies - print samples, business cards, etc. oh and your business insurance. Do you have studio rent? Then think much more than $25,000 as expenses. The figure I am using is based on not having a studio - and I am being nice, most with even part time businesses have higher expenses than $25,000.

3. So you need to bring in $92,500 in sales every year to get your desired income of $50,000. How do we go about that? Okay, ask yourself - how many weeks per year do you want to work? Let’s say 48 weeks per year (don’t forget, you may have your kids home for spring and winter breaks, etc.. $92,500 divided by 48 equals $1,927 per week. You need to have $1,927 per week in sales.

4. How do you want to achieve that? How many clients do you want per week?

If you want 2 clients per week, you will have to have two sales of $963.54 (if you are selling albums/prints, make that $1,163.54).
If you want 4 clients per week, you will have to have four sales of $481.75. (if you are selling albums/prints, make that $681.75)

Umm… okay, why did I add the parentheses? What are your COGS (cost of goods sold). If you sell an album, some prints, and a canvas, you are looking at COGS of being around $200 per customer - factor that in.

A little note, how many hours exactly do you work for your client. Hmmm… An hour in transit, 2 hours in session time, 4 hours proofing/editing, an hour uploading and doing office tasks, 3 hours between phone calls and scheduling and emails and questions from client and client sale finalization, packaging, ordering etc.. So you did 10 hours for that client? (we didn’t include other things like marketing and bookkeeping and in person ordering, but I’ll skip that for now - challenge: log in while you work on a client, EVERYTHING you do related to that client, I bet it will be close to 10 hours or more per client). Well that’s not bad, that’s about $50/hour toward the business for option one, having two clients per week. That’s half of what plumbers make, though… and guess what, your PICTURES LAST LONGER! :laugh: … but option two puts you at about $25/hour toward the business. Not TOO bad either - but you SHOULD be making at LEAST $50/hour as a BUSINESS OWNER (although myself and others would tell you as a business owner, you should actually be making more like $100/hour because you don’t want to forget having retirement, college funds for your kids, etc. and as a business owner, you should accept nothing less in my personal opinion or you may as well just work a job for someone else that is less stressful than dealing with the public). I challenge you to plug in lower numbers in this equation as well - let’s say you only want to make $20,000 per year - I’ll touch on that at the end. Although don’t forget, life happens, and you may find yourself in a pinch one day to where you may actually need an income to support your family on your own…. which begs to go back to - what do you value your time away from family at? One customer takes you away from your family for 10 or more hours. Is that only worth $250 to you? Not to me personally…. but to each his own.

5. Back to what do you price? I personally like to work by worst case scenario so I figure at the very least, I know I will have 2 clients per week, even during slow time, so that means I would want to guarantee two sales per week at $1,164. So therefore I would price my work so that every client would spend at LEAST $1,164 which means my lowest print package should be $1,164 (or $682 if going to take on 4 clients per week).

Personally, this is just my opinion, but I don’t think a business owner should be making less than $50,000, but that’s just me. You should network with some other local BUSINESS OWNERS (not photogs, but business owners) and see what they are making. Want to work with lower figures? “Oh I just want to do this part time for fun… $20,000 is plenty for me to have part time…”

Okay, let’s work with lower numbers.

Goal: $20,000 Add 35% to that for taxes equals $27,000

Expenses: Add all your expenses up - I’ll be nice and pretend you aren’t spending on all those group buys, trendy items, and you don’t have any SUPER expensive equipment, so let’s say your expenses are $15,000 per year (do you REALLY think that is high? I don’t - not at all - see above list and I challenge you to REALLY evaluate what you are spending every year - most photogs are spending at LEAST $20,000 per year in expenses if not much much more. So $27,000 plus $15,000 equals $42,000

So for you to make $20,000 per year, you need to have sales of at least $42,000

$42,000 divided by 48 weeks per year of steady work equals $875/week in sales without cost of goods sold factored in. You need $1075 (including COGS) per week in sales to have an income of $20,000 per year - so if you are only taking 2 clients per week, you need sales of around $640 for each client. Just keep that in mind…

Also keep in mind, if you are taking on 4 clients per week so that your sales need to be much less HOWEVER when taking on FOUR clients per week - you are working 40 hours per week - that’s FULL TIME for $20,000 per year… umm… That means that you are working a full time job for $10/hour - your time away from your kids is valued at $10/hour? You are missing 40 hours per week of your kids’ lives for $10/hour as a BUSINESS OWNER. Makes you think, doesn’t it?

I just challenge all new business owners to really look at their figures and use these simple concrete ways to project your income, to define your income, to price yourself out, and actually structure your business as a real business, and operate as a business owner who knows basic business management 101 now. Work your business proactively with good reasoning behind it. Remember, IF WE DON’T VALUE THIS INDUSTRY, NO ONE WILL.

Get Connected: Forum criticism: motivation or madness?

I will be the first one to admit that as a developing artist, I'm still entirely too attached to my work so much so that accepting criticism is difficult. Your first instinct might be to just dismiss negative comments as just that, a negative opinion. Sometimes I can do that and let negative voices roll off my back. Other times, like this week, I allow them to eat away at me, driving me just to the near side of insane. If something keeps bothering you, maybe that's the universe's way of saying, "take another look, stupid." I'm glad I did.

So taking a line from the Sci-Fi series "Battlestar Galactica:" "what the frack am I talking about?" I received a host of negative criticism about my new business logo when I posted about it on the Dgrin forum. I was shocked and disappointed that so many posters to my thread disliked what I thought was a great idea. Part of it was me personalizing the critics as if they were somehow attacking me. Another issue was feeling defensive and trying to protect my friend who created this logo out of the goodness of his heart (and for free!). I loved what my friend created from the get-go. Out of all of my attempts to try to create one myself and by using canned clip art templates online, Paul's "logo" spoke to me, stood out and was drastically different from anything else I had ever seen before. Because I had such a visceral reaction to it, I was SURE that it was the right thing for my business.



But those negative comments needled me so much that I started doing more research about what actually makes up a good business logo. I talked with other successful photography business experts here locally that I trust and got their opinions, and I researched online. Unfortunately, I had to face the fact that Paul's logo wasn't it, namely because logos are usually very simple graphically and has to be something that can be recognized even when printed very small. Paul's logo would start to lose its readability if it were printed smaller than a business card, and even he agreed to that notion. But further inspection let me know that what Paul created will be good for another business prospect. I think it will look perfect on the new postcards I plan to mail out as advertising for my business as soon as I buy a mail list to targeted neighborhoods in Denver! If you remember, last year I sent out this postcard with some limited success in my neighborhood. Imagine how great Paul's logo will look on this with my business information on the back of the card!





I've asked Paul to make a few more tweaks to the postcard advertisement, namely to separate the business name from the globe so that it stands on its own and can be more clearly seen. I am considering starting a logo campaign with logomojo to see what they can come up with. I've learned that there is STILL so much to learn about running a successful business. I should have created a logo right after I came up with a business name...but I guess it's better late than never. I've also learned that not every negative commenter is out to get you. It's really in how the information is thoughtfully presented. I've trusted responses from dgrin posters in the past, and their sincere comments have helped me during times of crisis when I needed advice on how to shoot weddings, runway shows, and deal with other aspects of photography. I'm glad I didn't let my defensiveness get the best of me....at least not for TOO long! ;)

Get the Job Done: Subtle Changes, Big Customer Impact

Since I'm still plugging away on the new redesign of my website and blog, I took advantage of some subtle marketing strategies suggested by photographer and business manager Jim Turley. Jim runs Sweet Water Images and teaches a "Passion + Profits" business management course at Illuminate Workshops.

Jim suggested that I delete the references related to up-front deposits in my Service/Fees. Jim says to handle those kind of conversations during the consultation and contract signing when/if someone wants to book you. The way I had it, stating that a deposit had to be made to secure the session, comes off as a negative first impression among clients. Instead, Jim suggests to aim for "pulling people in" with what you DO offer, and then deal with the terms once your prospect is interested.

Jim thought it would be better if I downplayed the price by putting it at the bottom. He uses a smaller font to lesson the impact on the eye. In such trying financial times when many still view photography as a luxury item, it makes sense to me that you want to convince the potential client of the quality of what you are offering before learning the cost. Although Jim didn't suggest this, I changed out the wording from "cost" to "investment" to push home the fact that this is something to be cherished well into the future.

Placing my "contact me" email link at the end is another subtle way of helping prospective clients see what you offering and then take the next step of contacting you. Jim says he's not reinventing the wheel here, folks, all of this is "just more natural" ways of fostering a more positive first impression.

If you want to learn more knowledgeable nuggets like these and you either living in or planning on visiting the Denver-metro area, take a class with Jim. The next one is scheduled for April 22. I've taken this course and the information Jim shares to help you workout that all-so important business plan is essential to the success of your company!

Growing Pains: 20 Tips Every Business Should Know

Quickbook Intuit's website offers a great list of the "20 Tips Every Business Should Know" to its customers to help them create a more efficient and profitable company. I wanted to begin offering this resource on my blog every Sunday in the "Growing Pains" post. Since I'm meeting with my CPA early next month to do my taxes, I thought this list would be helpful for you and me:

TAX TIPS

Here are some updates for the 2007 tax year. But realize that all tips may not be applicable in your area, so please consult your tax advisor.

1) The mileage rate for 2008 business has increased from 48.5 in 2007 to 50.5 cents.

2) Your 2007 tax refund can be deposited directly into an IRA account.

3) If you are a husband/wife partnership: A qualified joint venture is not treated as a partnership for tax purposes. Each spouse takes into account his or her share of income and expenses on a Schedule C.

4) Subject to certain limitations, an employer can make one-time balance transfers of an employee's Flexible Spending Account (FSA) or Health Reiumbursement Arrangements (HRA) to a Health Spending Account (HSA).

Growing Pains: New Business Slogan?

I have watched "I am Legend" at least six times (especially since it's been playing on HBO!), and every time I get something new out of it that I didn't catch before. Now, I wonder if I may finally have a slogan for my business:

"Light Up the Darkness." What do you think???? I like the dual meanings of bringing life and goodness to the world as well as using lights creatively to enhance photographic composition.....hmmm.



I've been doing a ton of research on developing my business plan, a logo and a brand in general. An article by photographer Sarah Petty in Professional Photographer Magazine talked about "owning your brand;" marketing to distinguish yourself and creating tag lines like:

"have a Coke and a smile"
"we bring good things to life"
"because you are worth it"

Petty shared a list of ways to help entrepreneurs brainstorm a business slogan:
1. Carry a creative journal at all times to sketch images and jot down ideas and words as they pop into your mind. They become a stockpile of prompts when you sit down to brainstorm.

2. Keep a running list of words that evoke emotion. If your wedding client says something warm and fuzzy during your presentation, write it down.

3. Subscribe to magazines (tax-deductible business expenses!). You never know when you can spark an idea from Rachael Ray’s Everyday or Real Simple. As you go through them, write down words, phrases, advertising and article headlines in your creative journal. You can’t steal someone else’s line, but you can farm the inspiration.

4. Read the copy in catalogs and awaken your inner copywriter. The Land of Nod and Sundance catalogs are two of my favorites. Get on mailing lists of companies who market beautiful and expensive products.



5. Ask friends, family, clients and prospects what they think makes you different. Ask new clients to put into words what brought them to you. Write it down immediately.

6. Reading kids’ books puts me in the playful place I need to be when I’m writing emotional copy.

7. Find the time of day or place where you feel the most creative. If you do your best thinking at a computer, transfer your journal notes daily.

8. Most truly creative people need to find inspiration, too, so they become sponges of the world around them— flowers, buildings, clothing tags, in-store signage, store windows, fonts, color combinations, textures.

9. Travel. Observe, even the pretzel packaging on the airline’s snack. You never know what little element will inspire you.

I love watching movies, and I can draw insight from great ones. Since I'm a reporter, I don't go far without having a pen and paper near by. So when I heard that phrase uttered in the movie "I am Legend," it resonated with me differently than it had all the other times. I don't know why. Maybe I'm just at this point in my life when I think the world needs more light in this time of financial and hence emotional darkness. I wrote the phrase down and started to think about how it could correlate to my photography.

In my photography, I've noticed that I often center subjects in front of a dark background. Common portrait techniques explain that a photographer should use a hair light or a light shining on the background to separate the subject from the background. But I don't do it, choosing instead to have the subject appear as if he or she is stepping forward out of the darkness. I think it makes the subject seem more mysterious. I like the idea that I have just thrown a light on them, capturing who they are in that one moment. Oh well, maybe I'm just being overly sentimental this morning. If I still think this way by this time tomorrow, then maybe I am on to something. :)

Get the Goods: New Smug Mug Products to Offer My Clients

I can't tell you how pleased I am that I am a Smug Mug client. Their staff is amazing, and they continue to be a very innovative group of people who are up-to-date with the latest industry technology. They are also very responsive to the needs of professional photographers, particularly in offering products to help our businesses flourish. You can bet that if they don't offer a service you need right now, it won't be long until they get it.

The past few months have been stellar for the company, as it has introduced so many wonderful new items I am pleased to now be able to offer to my clients.

A few days ago I blogged about the new holiday cards. More specialty card designs are on the way.

Smug Mug has also introduced:

1) Metallic prints -- With a glossy finish and unique metallic appearance, these prints have extra visual interest and depth. They are printed on long-lasting Kodak Professional Endura Metallic paper.



This paper uses a proprietary combination of film laminate layers that produce striking, three-dimensional, lasting images on an ultra-bright background. The effect is sometimes described as "chrome on paper." You'll see extreme sharpness, brightness, and color saturation with an intense black density that increases its appeal. The proprietary laminate layers also increase the durability and tear resistance of the final print, increasing the opportunities for display applications. Available in 11 sizes, you're sure to find one that makes your photo pop!

2) Frames, poster collages, and new photo books --SmugMug has teamed with Imagekind and MyCanvas to provide very high quality framing and publishing options. (Take a look.) We are working on ways to add them to the pro pricing page for selling at a profit in the future.



I have had a lot of fun making holiday cards out of my own images, and I found the software a breeze to navigate. I can't wait to learn how to work with the newer products and make these a part of my client offering.

Smug Mug regularly take suggestions from members and are always looking to beef up their services. They are in the process of making print packages right now, which are definitely needed, and I hope they hook up with a company to provide slideshow dvds as well. One of the best business decisions I ever made was to set up my website with Smug Mug and participate in their photography forum, dgrin.com.

If you are looking for a site to host your business website, then I highly recommend Smug Mug. I look forward to having my company grow with their services.

Growing Pains: Client Who Cares about Photo Storytelling

Michael and Kim

My latest client's love of photos was a great thing to see and be a part of.

Too many times, people take photography for granted and are to willing to scrimp on the money to pay for a professional photographer. New stats are showing all the time that photography budgets are the first to get slashed during event planning. So many people believe that they can give a camera to anyone and end up with shots that are just as good, if not better than those taken by professionals. I have to admit I've seen some shots taken by so called pros that made me shutter, but the majority of the time I'm simply in awe of the work that so many talented professional photographers can produce. I'm glad Kim and Michael, my last clients, understood the importance of photography and made images and the power of storytelling a hallmark in their engagement.







I was blown away when I arrived at the events center to shoot their party. Every single guest was greeted with the photo I took of them during their engagement session and it totally set the stage for more images guests would see throughout the evening. Kim created wonderful displays of images that showcased the progression of her romance with Mike. They made you feel like you were being included in this great journey the couple were taking together, and the impact was amazing.







I loved hearing people ask "Who took THAT picture." I still can't believe how great it felt to hear Kim proudly say, "my professional photographer, the one taking pictures over there!" That's me they were talking about!!!! Other people kept coming up to me all night long telling me that Kim was pleased and gushing about my work, which makes me happy because I was very nervous about shooting for them. I know that Michael had originally wanted a friend of his to take the photos, but the photographer never really agreed to do it. So they hired me. I was worried they wouldn't be happy with my product, wishing Michael's friend would have shot the party instead.

I think Kim will be a great referral for me. Having my pictures featured so prominently during her party was better than a slideshow presentation. And she has a website up as well that will be highlighting more of my photos. I've agreed to offer her low-res online versions of the pics. I wish I could travel with them to take their wedding photos and I hope they get a good photographer to capture those memories as well. But I'm extremely thankful for the boon I'm sure they have brought to my fledgling business.

I think what Kim did at the party is a great precedent that you might try getting your clients to do as well. If you take the photos early enough in their wedding process, you too can have images showcased at engagement parties, bridal showers, receptions, etc. etc. I hope that I can be Kim and Michael's professional family photographer too throughout their lives, and those of their children and grandchildren.

Growing Pains: Unexpected Sales!

On Friday, I got some unexpected sales from my Smug Mug business website.



The father of the groom from my first wedding purchased some 4x6s from the event. What intrigues me about this purchase is that I shot that wedding earlier this year but prints are only being purchased now. I don't know if this is a normal occurrence or not. It seems as if it took a very long time, but I am thankful for any additional sales I could make. I'm glad I decided to leave those galleries up on my website for as long as I did. But I wonder if I could have spurred more sales if I limited the time the galleries were available to the public.

Also, the mother of one of the Auraria college students I photographed two weeks ago purchased several photos. Her son was one of the models wearing clothing with the campus logos. She sent me a sweet email thanking me for the photos and the memories they preserved.



I think it's a great lesson for me and other new photography business owners. Even though I was paid by the university for their use of those images, putting them up on my website also made it possible for others to purchase them as well. Accessibility is key. Plus, the mother said she now knows who to come to when she needs other photos taken in the future. Sometimes the best marketing for your business is the good job that you do.



Turns out those business post cards I put on doors in my neighborhood has helped me secure a sale too. A neighbor needs some family portraits done for Christmas cards. She said she initially was just going to head down to a Sears or some place like that to get some shots of her sons. But her husband remembered the post card I left on their door months ago and told her to contact me instead!

Get the Job Done: The Value of the Impulse Buy During Presentation

Kim and Mike's Favorite of the Set

During the presentation of my first set of engagement portraits on Sunday, I discovered the value of the "impulse buy," and how it can be used to generate more print sales.

An "impulse buy" is a spontaneous purchase of an item that a shopper hadn't planned on buying. According to a survey conducted by The Yankee Group, shoppers are driven to make an impulse purchase by a "special sale price," free shipping and holiday or seasonal promotions. Other studies have long assumed that impulse buying happens at the cash register, which is why many small items such as batteries, candy, magazines and mints can be found on display racks or on the counters around cash registers in retail stores. I think I unwittingly tapped into that unconscious buying pattern by having prints available for purchase during the presentation.


My favorite of the set

When Kim and Michael arrived to my home to see the photos I had taken of them for their upcoming engagement party, several of my favorite photos had been printed out in 8x10s and displayed to tell the story of their romance fueled by outdoor activities including bicycling and skiing. The prints included with a laptop photo slide show set to a play list of love songs made quiet the impression.

It was the first time I had printed images from the KODAK ESP 3 All-in-One Printer I had received to review for my job at the Denver Post. To be honest, I didn't have high expectations of the prints thinking they wouldn't look nearly as good as anything I'm used to getting from the professional printers at Wolf Camera. To that end, I didn't feel comfortable selling them at full price, and I told the couple that if they purchased any prints that same evening, I would sell them for a discounted prices -- 8x10s for $10 and 4x6 for $2.50. After that, the price would go back up to $15 for 8x10s and so forth if Wolf or my online printing service did the work later.



As you can guess, the couple brought nearly all the prints and I made an extra $85 that night. That may not seem like a lot of money, but imagine how much more I might have made if I had other products on hand during the presentation, including more prints or even announcements for their party. I'm learning that accessibility and convenience are important to clients and make it easier for me to earn extra money too. I've already found out the hard way that the chances of securing additional print packages decrease unless you include them in upfront costs. So this could be another business strategy to spur more sales.

Tips of the Trade: The Importance of Marketing with Jim Turley

I got an email today from my friend and business management instructor Jim Turley that I thought would be helpful for my blog readers. Turley tipped me and several of his students off about The Wedding Report, a site that features statistics and market research for the wedding industry. I quickly joined the site and receive regular updates and news such as this report on Colorado wedding statistics. You need to join and login if you want similar access.

Turley says wedding photographers have to consider the fact that all of us will be working harder to attract the attention of a shrinking number of brides while the numbers of new photogs entering the field keep growing.

"Not quite as bad as GM selling SUV's to a shrinking market, but the
same factors are involved," says Jim. "Good marketing will be even more important
in the coming years so you get more than your share of the market because the market size will decrease."

Jim pinpointed this report on wedding trends completed in September prior to the start of the economic crunch.

"The contents are not encouraging; less being spent on photographers,
increasingly popular to have friend/family shoot the wedding, etc."

The Wedding Report just released the results from their most recent online report, which can be purchased for $129. Competition is frightening in the $60 billion wedding industry, so this report might be worth the cost of having a leg up.

It covers:

What the future online wedding market holds for your business
What tools brides want to see on your website
How social plays a role and what it means for you
What future web trends you should plan for now
How important your web presence is
When you should spend your online marketing dollars
What key SEO trends you should focus your content on
Who the top Internet players are and why

It's food for thought definitely, and I'm starting to considering more options for marketing my company as well. I finally have enough money to get pay for having someone create my business logo. That's an important step I should have taken a long time ago, but I never saw the importance of it until now. I have to start making my business stand out from the hundreds of other photographers working in Colorado now.

Get the Goods: Valuable Nationwide Wedding Statistics

My business management instructor Jim Turley sent me an email tipping me off about a new resoure for aspiring wedding photographers. The Wedding Statistics and Market Research for the Wedding Industry website has tons of valuable information, including free access to:

US and State level Wedding Statistics and Industry Research
State of the Industry Vendor Survey Results
Monthly Top 10 and Annual Trend Reports
Industry Facts Overview and Business Common Reports

According to the website, account holders can use the market research to fine-tune your marketing plan for snagging wedding clients. The Wedding Report will help you:

Strategically create and fine-tune your business or marketing plan
Better understand your wedding marketplace
Target your ideal bride and groom
Make superior pricing decisions for your products and services
Spend your advertising dollars more wisely
Discover the latest consumer wedding trends
Get local wedding market data for your media or press kit
Find statistics and data for your wedding market research

Check out the wedding industry blog for more information.

Growing Pains: Portrait Sales During Event A Big Hit

As I mentioned earlier, Jason and I came up with this plan to try to make some additional print sales from our last gig at Crystal and Jaime's wedding reception. You guys already know I hate taking "grip and grin photos" where everyone stands together, puts on a smile and says "CHEESE!" But I know full well that those are the kinds of shots everyone seems to want! So I asked Jason if he could set up an impromptu portrait session with some constant hot lights during the reception, giving people the option to go take single or group shots while I shot candids and reception highlights.



I think our first time doing this was a great success! Jason made about $150 in print sales that very night and would have made more if we would have had a printer on hand. He was able to quickly edit photos on his laptop with Lightroom, show the customers what the images looked like and take orders for print sizes all during the same event. I think having this service available gave the added dimension I was hoping for, and created the possibility of even more clients for us in the future. While I walked around the reception, I made sure I told everyone Jason was on hand to take portraits, and soon people started lining up. Because I couldn't afford to pay Jason for shooting this event, I told him he could have all the money from whatever print sales he made. He had his images edited and up on the web in three days, and I've already heard from clients at the reception say they couldn't wait for their photos to arrive in the mail. Nice job Jason!



One of the things we really need to do is get a compact printer to take with us on location. And Jason needs some quick and easy backdrops to set up because we can't always be certain the location will give us a good background to work with. I think I'm going to contribute a smaller gray backdrop that came with one of my lighting kits. It can be easily hung and taken down, plus the neutral color works well with just about all skin types and clothing colors.

Growing Pains: Letting Clients See Unedited Photos (Part 2)

Nina's pick for her senior portrait


Today I finished editing my last trio of senior portraits referred from Jordan. It was a great pleasure to be able to shoot these lovely young ladies and capture memories of this very important year in their lives. I hope I have given them photos they can cherish for years to come. And it's wonderful to think that my images will be printed inside a yearbook! Thank you ladies for giving me this opportunity, and now I have examples to send to schools across the metro area in hopes of securing more senior portrait sessions next year. I have also been following the work of Anne Martin, a Dallas-area photographer and blogger who specializes in senior portraits. Martin does a tremendous job, and her images have been a great source of inspiration. I love the section on her site that discusses "Senior Secrets," and I will definitely share these tips with my future senior portrait clients to help them prepare for the session.

Gloria's pick for her senior portrait


Last week, I blogged about a new work flow I would be trying out during my post processing of Nina's pictures. I had been worried that editing all of my images before I presented them to the client took too much time, especially when it was clear the client preferred some shots over others. I decided to try a different tactic and allow Nina to see unedited proofs. Thankfully, the majority of the images I took looked great coming straight out of camera, or I wouldn't have had the courage to do this. I think that if you are going to go this route, it's even more important for you to take the time to get the shot right instead of relying on Photoshop to save you later. Nina and her mother had already had the chance to see the result from sessions I completed with Jordan and Gloria and knew that I could produce. But I was still more than a little nervous going into this.

Jordan's pick for her senior portrait


Out of 100 or so images, Nina chose about 20 shots that she wanted fully processed. That alone saved me days worth of editing, and I was able to get all of her favorites (plus about 10 of my own to use in my port) done in a single afternoon! Overall, I think this process worked well. For my next portrait session, I may process one or two images to the max just to give my client an idea of what to expect when I show them proofs.

It will be interesting to see if the process works the same with the several hundred wedding reception shots I took yesterday. With more than 500 images, I would hate to spend time editing photos that the client doesn't want. But there's a big difference between the 25 to 50 shots clients get from a portrait session versus the 150 to 200 shots promised them from an event. More to come on this topic later.

Growing Pains: Business Briefs

PHOTOGRAPHERS BE WARY OF DOING BUSINESS ON CRAIGSLIST



My friend and photography colleague Jason Peckovitch shared with me some recent troubles he has had in getting a client he met on Craigslist to pay him for his services. This "client beware" tale is the reason why so many photographers, including myself, now require their clients to pay a deposit and the rest of the full payment BEFORE the day of the assignment, even before the shooting actual begins. And get everything squared away in a contract.



I asked Jason to write up something for my readers explaining how he got into this situation and what he plans to do to get his payment. To see the full explanation, read the entry on his myspace page:

"Here it is, a month and a half later (event was at end of May) and I have only seen HALF of what he has promised me. For the last 3-4 weeks he kept telling me, oh it’s in the mail and then finally last week told me that he lost my address and if I got it to him that day, he would mail it out that day, so I sent it to him again. A week after that, and I have yet to see anything.

I have yet to hear back from him, so I doubt I will ever get paid. Pro-bono stuff is OK, from time to time, but if you are going to get paid, make sure you get it in a signed contract form, or at least in writing of some sort. I’m at the point in my “photographic career”, that I should be getting paid for all the time spent behind the camera or in front of the computer for someone else. But this kind of thing puts a sour taste in my mouth and tells me to quit."

The above shot is an example of the images Jason shot for this client. To see more check out his website with these links. Show Jason some love and share some comments on how he should proceed here or on his Myspace page! Hang in there, my friend. I know jujitsu if it comes to that! :)

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GUIDE TO MAXIMIZING PROFITS WITH CREDIT CARDS

I received my first credit card payment for a photo this past week through my online PayPal account. I blogged about setting up my PayPal "PayFlow" Account. My bank serves as my merchant account services while Paypal acts as my gateway for accepting payments.

Up until this week, I had been having second thoughts about this service. I had been paying monthly service and transactions fees even though no one was using the service, continuing to choose to pay me with checks or cash. But I'm glad I decided to keep it---for now----because the Rocky Mountain Elk Foundation recently paid for an image through their company credit card. The Paypal service includes a Virtual Terminal to accept a client's credit card information securely via your web browser and get a transaction number and confirmation code right away.



But I am considering switching my credit card processing solution to QuickBooks Merchant Service, which doesn't include "common hidden costs" such as annual fees, payment gateway fees, or statement fees among others. I will do some more research and see if Quickbooks offers a similar or even better programs than Quickbooks. For now, download your copy of Quickbook's "Guide to Maximizing Profits with Credit Cards."

1) Watch out for hidden costs.
2) Just say "no" to forced equipment leases
3) Don't waste valuable hours on double data entry.
4) Speed up cash flow.
5) Think outside the box.
6) Step up to automated billing.
7) Expand your business online.
8) Consider offering gift cards to boost your bottom line.
9) Get paid even when you're on the road.
10) Make sure you get all the support you need.

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BOUNCE BACK FROM RECESSION



The latest issue of Entrepreneur has a great article on how top entreprenuers from different industry sectors and regions "not only survived but thrived" through two recessions. While none of the people profiled were photographers, I still think we all can take advantage of the strategies they used to cope with slow economic times. Pick up the the August 2008 "8th Annual VC100" issue and start reading on page 19.

1) Overhaul the business model
2) Don't stop marketing
3) Cut expenses
4) Keep the cash flowing
5) Find the Upside.

Find out more tips for sailing through tough economic waters at Entrepreneur.com.

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EBOOK EXPLAINS HOW TO SELL YOUR DIGITAL PHOTOGRAPHY ONLINE AND OFFLINE

I received a link for this free download of Petleopard.com's new ebook "Earn Extra Income In a Snap: Selling Your Digital Photography Online & Offline."



It's a great resource and includes practical insider tips for selling your images on stock photography sites, at art photography sales sites, art fairs, public events, online photography stores and on consignment. Also get tips for marketing your photography through business cards, post cards, a website/blog, email marketing, online forums and communities.

Thank you Pet Leopard for providing this information.

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UPCOMING WEBINARS FOR PROFESSIONAL PHOTOGRAPHERS

Marathon Press has announced its roster of webinars running in August. For a complete list of webinars and descriptions, click here.

A Brand New World: Building Your Brand
with Monica Sigmon
Monday, August 4 - 12 Noon CT
Pin-Point Targeted Marketing-Getting a Huge Return on Your Marketing Investment
with Bruce Hudson
Thursday, August 7 - 7PM CT

Wrapped in Richness
with Greg Stangl
Friday, August 7 - 12 Noon CT

Creating an AMAZING Client Experience
with Tim and Beverly Walden
Monday, August 11 - 12 Noon CT

Partnership Marketing
with Mary Fisk-Taylor
Wednesday, August 13 - 7PM CT

Expanding Portrait Lines With Technology
with Jane Conner-ziser
Monday, August 18 - 12 Noon CT

25 Tips, Suggestions, and Just Plain Good Ideas for Building Your Business
with David Ziser
Wednesday, August 20 - 7PM CT

Pricing Your Work for Profit...and MORE Profit
with Bruce Hudson
Thursday, August 21 - 7PM CT

Finding Great Clients in Any Market Area
with Michael Redford
Monday, August 25 - 12 Noon CT

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ANNE GEDDES AT IMAGING USA 2009




Anne Geddes will be a featured speaker at Imaging USA January 11-13, 2009 in Phoenix, AR.

At over 500,000 square feet, Imaging USA ‘09 features the largest, most vibrant photography EXPO in North America with the most tradeshow booths ever. You’ll be amazed when you see all the latest products, essential tools and software at the cutting edge of technology.

Mingle with more than 8,600 industry professionals. Catch up with old friends. Make new friends. Celebrate at two of the largest parties in the industry. Find that perfect product at the Imaging EXPO. Discover the breathtaking photo ops under Phoenix’s desert sky. What are you waiting for? Register today!

Attend three conferences or workshops in five program tracks, including Business First, Essentials, Spotlight, Wedding & Portrait and Adobe Photoshop and Lightroom.

Get the Job Done: First Senior Portrait Commission

I had a consultation last night with the first teenager who has commissioned me to shoot a senior portrait. The young lady, Jordan, is the lovely daughter of her equally lovely mother, Teri, whom graces the banner of my blog and has been pictured in previous blog entries and featured photos. I can't believe how much (and how fast) Jordan has matured into this hip, driven individual, and I definitely want to add as much of those characteristics into our planned session.

I first photographed Jordan during my first portrait session with Teri and her family last year. What I remember most about that set of photos is this wonderfully captured moment between Teri and Jordan when Mom realized that Dad had given Jordan permission to have a piercing (of course without Mom's consent!). You can see how Jordan got found out as you read through this post.



I think this moment let's the viewer see not only the relationship between mother and daughter, but gives us an idea of the mischievous and ultra-urban nature of Jordan. I remembered this set of pics when I spoke to her last night to get her ideas of what she wanted done. And I also implemented some new business practices I've developed since the wedding.



Jordan and I looked over her yearbook to get an idea of the kinds of images she liked or didn't much care for. We also checked out the school's rules for submitting senior high school portraits, including the need for vertical and color shots, but no distracting backgrounds or props. We both agreed we wanted to try something edgy and nontraditional (meaning no green plants surrounding the subject or waterscapes). Jordan said no to vignetting and no to pictures where she's not looking at the camera, but yes to removing her piercings (to please her mother).




The one thing we noticed that no one else had (which we all know is extremely important to teenagers) is a night portrait. Since my free workshop with Illuminate Photography, I've become addicted to night photography. The school doesn't have any rules against it, but we think that's because it's never been done before! So we will try some urban shots with city lights behind her. We also want to play with center focused, nearly panning type shots where Jordan is focused but everything else around her is blurred and moving. I already have a couple of places in mind, but I will be scouting out more locales this weekend.

And just in case the school nixes our unorthodox ideas, we will do a few traditional poses too!

Jordan accepted several upgrades to her portrait package (which includes 2 8x10s or 4 5x7s). She will buy a CD with all of the edited images only printable as 4X6s, and she will get her makeup done from one of my makeup artists. To help grow my business, Jordan has agreed to refer her friends to me. For her efforts, any referrals who book sessions with me will result in either package discounts or extra prints. Looks as if she's going to want extra prints. And her yearbook gave me the idea of buying a full page ad sometime in the future!

Growing Pains: A Legal Foundation for Your Business

Put down the camera for a second and get into an entrepreneurial state-of-mind. Here are some great resources from photo attorney Carolyn E. Wright to help the creative right-side of our brains come in line with the logical (and hopefully money-making) left-side. Check out her blog to get more advice on securing a legal foundation for your business:

1. The IRS website - taxes are the most unpleasant issue, but at least it's easier today to learn about them. The IRS website is surprisingly user-friendly. The business section addresses subjects such as how to start and operate a business and includes a special section on small and self-employed businesses.

2. Your state's secretary of state website - each state has a website directed to topics such as establishing and registering your business and state tax requirements.

3. Your county's website - many county governments also have websites so that you can learn about the requirements to operate a business in the county. Conduct an Internet search on your county's name to find it. Click on "business" to find information on licenses and how to register your "fictitious name," also known as your "doing business as" (when you operate your photography business under a name other than your own or a state registered corporation or company).

4. Your own CPA - even with these great resources, it's still difficult to know how to organize your business and pay your taxes. Find your own CPA to help you with those issues.

5. Your own lawyer - despite the plethora of legal advice available from web forums, your legal circumstances are unique. The legal answer that worked for one photographer may not work for another. Find an attorney who can help you with your specific legal concerns.

I have taken care of points 2 and 3, having registered my company's name with the state and county. My accountant specializes in working with journalists so I think I have that covered. At some point I will need to acquire an attorney and get a better handle on my taxes when I start making more income.

Growing Pains: How to Succeed in the Photography Business

I am going to be introducing a new section of my blog today called "Growing Pains," featuring advice on maintaining a successful photography business. Lord knows I need all the help I can get, and if you are new at this like me, then you probably could use some advice too! Just about every other day, I get emails from various news, business and marketing services I have subscribed too, and I thought the information would be helpful to my readers too.

Marathon Press, a marketing partner for professional photographers, released these highlights from a Professional Photographers of America's Financial Benchmark Survey into some extremely user-friendly tips:

1) Gain experience before you quit your day job. Learn about the business of photography by operating a part-time business while still drawing a salary from stable employment. Don't go out on your own until you can:

Develop a following among your target market, so that you can gain client referrals.
Develop consistent cash flow from your part-time business. Most experts agree that a photographer should be grossing between $50,000 and $100,000 annually before it is wise to consider a full-time business in a home studio and at least $150,000 before considering a move to a retail location.

Create an efficient work flow that will allow you to deliver orders on time.
Bank enough cash to live on until your business becomes profitable. This can take from two to five years.

2) Control your start-up overhead. Starting a home-based business will help you to control operating costs and provide the additional benefit of writing off some home expenses as legitimate business deductions. Not every home lends itself to business operations because of zoning and/or image considerations. So if you must start a business outside the home, search for a low-rent location such as a community-based business incubator until your business can afford costlier facilities.

3) Understand financial and operational requirements. Don't go into business until you understand the financial requirements of doing business. Vital areas of concern are:

Being fully aware of all business costs, from investment capital to monthly expenses and product production costs.
Knowing how many sessions or events you must photograph to cover these costs and earn a profit.
Learning how to price your photography according to industry standards that assure profitability.


4) Budget your capital investments very carefully. Too much debt will doom a business from the start. Remember: Your business must be able to generate enough revenue to pay you (or the bank) back for the capital investments you make. Even if you have the cash to invest in capital items and don't have to go into debt, that cash might be needed to help you survive the early business years when most studios do not generate enough revenue for the owner to draw a salary. Once you have the business start-up essentials, a good rule of thumb is to purchase only those extras that you can pay for within 12 months.

5) Once you do take the plunge into a full time business, build business volume as fast as you can, doing whatever it takes to get clients in the door.
PPA's Benchmark Survey confirms what business authorities know: The difference between financial success and failure often turns on the ability of a new business to build sales volume quickly. That's why many recommend not starting a full-time business until you already have a loyal following from running a part-time business. Even so, a full-time business will require additional strategies for building sales. Get the word out any way you can: through networking with other businesses; hosting a series of open house events for different community segments; get involved with charitable organizations by donating photography to their fund-raisers; look for "marketing partners" to help spread the word; get displays of your work on the walls of retail businesses and/or professional offices; and even offer "invitational sessions" for the purpose of "expanding your advertising portfolio" or making samples. Building your business base early will establish sales levels high enough to sustain your business over the long term.

6) Develop a clear business focus that consumers can easily understand. Don't expect prospects to be attracted to your business if you fail to create a business concept that is easily understood by consumers or one that lacks compelling products to excite their fancy. Sometimes it pays to direct your new business to only one or two niches, such as family and children's portraiture or wedding photography. Limiting your business in this way will help you to develop a strong focus that consumers can readily understand, and it will greatly simplify your marketing efforts.

7) Study effective marketing methods. Learn how to create year-round marketing strategies designed to attract new clients. Market back to existing clients, finding ways to reward them for their loyalty. An excellent resource for learning about marketing methods as well as helping you to create a marketing plan is the Marketing Resource & Activity Planner for the Professional Photographer, available from Marathon Press at MarathonPress.com or call 800/228.0629