If like me, you were told to work out your overheads, how many days a year you plan to work, and calculate your fees from this, you have also been pricing your photography work incorrectly.
There is a huge amount of free advice out there on the internet, but part of the problem with free advice is that no one is really there to peer review it. When I started out in photography, I took the advice that many were offering in order to calculate how I should be pricing my services. I then very quickly came undone when the model simply didn't work.
In this video, I go over how I work out my prices as a commercial photographer. Although the work I do may differ from you, the general gist is the same. Since using this method for pricing, my business has been both more profitable and busier. Someone in my comments kindly told me that the method of pricing I use now actually has a name and is called target costing.
The other benefit to using the target costing approach is that it makes the purchases of photography equipment far easier. Rather than worrying about which kit you should buy, you are left with a number that will clearly dictate this, so you kind of have to work with what it gives you.
How do you go about pricing your work?
I do not agree with one word of this.
Forgot snobby locations. If your in places like LA and you don't show up with the latest and greatest it will look bad for your business, so renting is important.
He makes a fair point.
Commercial clients who regularly buy photography have a very clear idea of market rates *at their level*.
That is key as inexperienced clients (usually smaller businesses) have little idea what their dream images cost. They (like most people) have an idea of the spend and will not go over that.
Some rock star photographers can get more but largely because their celebrity is part of the product.
Most of us are not that.
The interesting aspect of the fact that the clients set fees to an extent implies we are in a commodity market. While they don't believe that photographers are interchangeable, they do not also believe that certain photographers are indispensable.
Take home message: Get better clients and stop buying glitzy gear.
Very reasonable! I've been in business for more than 20 years as a self-employed person (not a photographer) and that's what it's all about: Keep your costs as low as possible and charge as much as you can for the quality you deliver. That's much easier said than done and of course there's much more to it. But it's the way to go. It works for both sides: You and your customers.
I'm sorry--I'm completely distracted by the cat that never moves (in three videos no less!)... [grin]
He is so right, years ago I shot weddings (on film) I charged about 1/3rd less then other self proclaimed professionals. After viewing my wedding portfolio and discussing price this future bride and groom said "you dont charge enough therefore you don't know what you are doing" I didn't get that booking. Mouths later this couple came back to me and wanted me to edit/fix their wedding pictures. I told them I couldn't do that due to copyright. After that slap in the face I went out and bought Canon's 1Ds MKii and set it on the table when in interviews and trippled my prices. The dumb thing was I got three times the booking. Crazy right? I no longer shoot weddings. Sorry for this long post but I just had to chime in and agree to what Scott is saying. Great post but most will still be in the dark on pricing Robert in London Canada