Pricing is one of the hardest parts about running a business. When I started, I was a pricing mess. Yep, one of those really cheap photographers practically paying clients to come to me. Losing money and not valuing my time at all. As I’ve grown and started to understand how to run a business instead of just being a photographer, I have discovered THREE pricing mistakes that I was making….and so many others are too.
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Pulling Numbers from Thin Air
Did you know there is a REALLY simple formula for pricing yourself? And it has nothing to do with your experience, or your confidence. Once you set your pricing, get your quality and experience up to par. Pricing your photography business is based on three simple things:
1. Your Cost of Doing Business
There are SO many costs involved with running your business. To name a few: your equipment, education, travel expenses, product cost, gallery and hosting fees, office supplies…the list goes on and on.
2. How much you want to make
Once you crunch all the numbers you may realize that you are making less than minimum wage. Think about how much you need to take home at the end of the year.
3. How much you do you want to work
There are high volume photographers with low pricing and low volume photographers with higher pricing. If you’re okay with working all week, then high volume is for you.
by Hannah Fine Photography
THE FORMULA
what you want to make + cost of doing business / amount of sessions or weddings = price
Example: If you want 20 Weddings Per Year, you spend 10,000 on Running a Business Each Year, and you want to make 30,000 in profit, you need to charge 2000 per wedding.
- How much does it cost to run your business per month? per year?
- Did you spend most of your money on equipment, or education, or office expenses?
- How many hours do you want to work per week?
- How many sessions or weddings do you want to take per month?
- How many sessions or weddings did you take last year?
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Which one was the most profitable?
If these questions are difficult to answer, it’s time to get organized with your accounting. It’s hard to track your business progress if you have no idea where they money is coming from or going. You don’t have to be an accountant or mathematician to keep good records.
Each week I track my expenses and income into my photography spreadsheets. (available in OPB Membership) It includes: Monthly Expenses Spreadsheets, Monthly Income Spreadsheets for Weddings, Portrait Sessions and Product Sales, Yearly Gross, Net & Expenses Average, Yearly Wedding, Portrait, Product Average, Includes Client Database: Names, Session Dates, Locations, Address, etc
2. Basing Your Pricing on Other Photographer’s Pricing
Photographers base pricing on emotions, their own confidence and the competition down the straight way more than on actual numbers. This has to stop. EVERY photographer has different costs associated with running a business and different income/workload goals.
Photographer 1:
- Wedding Package: $1500 (Includes 4 hours Wedding, Engagements)
- Time Involved: 6 Hours Shooting, 2 Hour Total Communication with Clients, 2 Hour Post (includes: Getting Photos Ready for Outsource Editing, Blogging, Posing)
- Costs Involved: $125 for Outsourcing
- Income: $137.50/hr
- (Doesn’t Include Costs of Running a Business)
Photographer 2:
- Wedding Package: $2000 (Includes 4 hours Wedding, Engagements)
- Time Involved: 6 Hours Shooting, 2 Hour Total Communication with Clients, 12 Hour Post (includes: Editing, Blogging, Posing)
- Income: $100/hr
- (Doesn’t Include Costs of Running a Business)
Even though photographer #1 is $500 less for their wedding package, photographer #2 is making less per hour. You NEVER know what another photographer’s costs and goals are. If you are consistent in your work from start to finish and can promise the quality that you show, you are worth what you say you are…regardless if the photographer cheaper than you is “better.”
3. Not Showing Value Before Numbers
Pricing should be way more than a chart of numbers. What you are offering your clients has value far greater than dollar signs. A great pricing guide shows your value first.
If a client were ONLY to see the pricing guide and nothing else on our website, we are confident they would know exactly who we are and what we would give them. Learn how to price yourself in the Left Brain Photographer class in the OPB Membership.
Kylee started Kylee Ann Photography 9 years ago, and has since grown from a one woman amateur show to a full associate team. We shoot 50-75 weddings a year, and thrive on kindness and service. After a year of teaching Intro to Photography at the local technical college, she discovered that helping other entrepreneurs create thriving businesses is what fires her up! She hosts semi-annual Kylee Ann Sleepovers all over the US, speak at conferences and teach online courses about running a small business and marketing.
June 8, 2016
Kylee Maughan
