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DPChallenge Forums >> Business of Photography >> Help deciding a pricing model
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06/18/2012 07:43:36 AM · #1
it seem that I have two methods of pricing to choose from, being mainly family and individual portrait shooting, not sure what would be the better model. The major difference being where i include my editing/processing costs.

1. charge a low sitting fee and high markup on prints, with a minimum purchase required.

2. charge a high sitting fee and low markups on prints, no minimum purchase required.

in theory both models would generate the same income for me, however I'm not sure if one offer a benefit over the other in term of generating business.

Option 1 would probably draw more people to a sitting with me, but i would probably have to offer quite a few prints and photo packages to make up the time editing and processing the photos. the photos would be marked up say 1000% or more and requiring a minimum purchase to make sure I get reimbursed for my time.

Option 2 would pay me upfront for my editing/processing time but may scare away potential customers with a larger initial cost, but the costs of prints would only be marked up 300-400% with no minimum.

I'm leaning toward option two, since i pan to process the images before and i dont want to waste my time editing image my clients dont want. however option 1 seems to be the preferred method for the photo-chain stores and some local photographers i have come across.

Another thought would be to choose option 2 and included say 1 - 8x10, or something to know let the customer know they aren't going to get gouged having to buy additional prints. in both cases i would have to be upfront with my printing costs.

I'd also like to hear thoughts on whether one model is preferred over the other for some reasons i haven't thought of.

06/24/2012 12:04:18 PM · #2
1. charge a low sitting fee and high markup on prints, with a minimum purchase required.

this has been traditionally the way it\'s done (without the min purch requirement). Low risk to the consumer so it\'s easier to get them to try you, come in for pics. Everyone\'s fear is \'what if I don\'t like the pictures?\'

You can\'t do a min purchase requirement...would you go to the a store that said \'you must spend $50 or don\'t come in teh door?\' Of course not.
What you can do is figure out your time, on average for a shoot, and what you need to make per hour on average from a shoot and have your packages start at that price point. Packages should offer substantial discounts over ala carte. You\'re biggest fear is they come in and buy one 8x10. It can happen, but it\'s rare.

COGS for photography studios is about 25%, give or take. You can mark up a loose print a whole lot, but a frame or canvas not nearly as much (unless you do 100% of the work in house. I can print/coat/stretch a 16x20 canvas for about $18 in materials and 1/2 hr of time. Buying that off a lab runs $90-125 and it doesn\'t sell for any more to my customer)

You cannot spend time editing images before they\'re bought. Very inefficient. You need to get it as right as possible in-camera and then have a fast workflow. I use LR and can input 150 images and get 50-75 out in proof stage. That\'s B&W or effects, cropped, WB, etc. So a typical session may be an hour w/ an hour on proof editing (if that), then I do projection sales (the only way to do it) which takes 45 mins on kids/families and more like 90 on seniors (but then spend 3X as much), 1/2 hour final editing/ordering (more like 90m on seniors).

I\'ve seen photogs offer a $300 session say, with all of it a a credit toward their purchase. You can advertise \'free session\' this way if you want.

Things you can control - outfits - limiting them (to say, 2 to 4) shortens the session. Not limiting them can increase sales though. I find no limits on seniors works well, on kids 3 is good (and then charge extra for more outfits).
Poses - these you control in your packages/sales. I\'ve got a \'pose for $35\' and then products are cheaper ($35 /sheet). SO if htey want 3 copies of one pose it\'s $35/pose plus 3X35 for the sheets. If they only want 1 8x10 the\'ll pay $70 for it.
NOw the packages include 3 poses (smallest) to 10 poses and there are no pose fees in there plus a discount to make them attractive.
Files are pose fee plus $79, or 5 for $X...this is changing as more and more moms want a disk of \'all\' the pics from a session (thanks walmart/sears, etc for this). OK - so i\"m offering that for $179 (min 15 images, but could be more) and no sales session or detailed editing (retouching of stray hairs, lint on clothing, skin smoothing, etc)to family/babies. Seniors (at least the late 2012 ones) are also after disks - $500 for 20 images is a viable price - so I\'m raising it. Again, NO retouching. That\'s $15/image more. (i run portraiture on exports from LR so there\'s not much to do in most cases).

Remember - the low session/package pricing has been standard for this industry for decades. It works. No need to reinvent the wheel.
Spend $39 and sign up here ww . cjlewis . com. Looks goofy and like a come-on, but that \'appearance\' actually sells for him - and us photogs too. (sent out letters, cold, to churches and schools for first communion and prom - got 3 jobs worth $1500 out of it - cost was $16 for postage/letters and 1/2 hour time) Easily paid for my membership for the year.
His telescripts are worth the price of membership 10 times over. I book 90%+ of the calls I get.
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