Do you find yourself having to justify your prices to people looking for your services? There are a couple of truths to be had here.
Often if someone has never used your type of service before, they have no idea what it may cost. Unlike using services most of us are familiar with, such as going to the hair stylist or having our oil changed, there is an expected price range we are willing to pay for those services. But what if you are about to undertake something new? Something you are blind to the actual cost of?
How do you research and figure out what is a reasonable price to pay?
Reasonable is always subjective by the way. What I find reasonable you may not and vice versa. It’s a personal pet peeve of mine when someone asks, “Hey does anyone know a reasonably priced” (fill in the blank)?
Give a budget range if you can and you are likely to get a better answer.
First, I would do an internet search of several of those services across your local area. What are other people charging for the same thing?
Hold up though….it’s not as easy as that. What if people are offering the same service, but the pricing is vastly different? How can there be such a discrepancy between say one website developer and another or one photographer and another? How can one business charge $500 for a service and another charge $1000 for that same service?
Second, I would not jump to conclusion and judge solely on price alone.
This is where it gets tricky. This is where actual research will come in.
Many of you reading this will also be business owners, so you know the general public who are NOT business owners will have a harder time understanding the cost of things.
WE know there are so many little invisible costs that go in to getting your product or service to market, but as a consumer, especially one who has never run their own business, they can be a little blind to those backdoor costs. It’s not top of mind for them. They do not care how you run the business, they care what it costs and how it’s going to affect them.
Let’s take my industry – photography as a case study here. Obviously depending on the type of photography service you are seeking, there will be a wide range of prices. You are not going to pay the same for a family shoot, versus a wedding, versus a branding shoot. (This is where the research comes in folks). As I mentioned earlier, it is not wise to shop on just price comparisons alone.
It would be like comparing a Volvo to a Rolls Royce.
They are both cars, but one will have many more features and quality attached to it than the other, so you need to find out the quality difference when choosing a photography service.
You need to research how many years of experience your photographer has, read testimonials from past clients, follow their work is it consistent? What are they offering in their packages that may justify the extra expense to one who is much cheaper. Are they good communicators? Do they answer your questions honestly and openly? Do they get back to you in a timely manner when you ask a question? Do they have a specialty, or do they photograph everything and anything they can get their hands on? This is a good place to start your inquiry.
It’s a common myth that if you are a photographer, you would be good at taking photos of anything. This is so not true.
I have neither the proper lenses, patience or will to be a good wildlife photographer. Landscapes you need a specific eye for and again the right training and equipment to do that. Real-estate interiors, not my jam. (although I’ve tried it once or twice, it’s not for me).
My love and skill comes from capturing people. I am a people photographer. A photo seems hardly complete without you in it. (At least I think so.)
When you find a photographer that specializes in mainly one thing, you can bet they spend most of their time trying to perfect that skill and will be invested in the quality, so if you are seeking that quality and knowledge for yourself, you know investing in a specialist rather than a jack of all trades is usually the better route to take.
What goes on behind the scenes of photography that costs so damn much anyway? Don’t we just spend an hour or two taking photos and then load them up on to the internet for you to download, then roll in the dough you paid us? Ahhh, if only. I would have a much fatter bank roll than I do!
In the spirit of transparency, I am going to break down my costs for you, so you can see why my services for brand photography might feel a little on the pricier side to some of you.
Let’s start with things you can’t put a price on:
- My experience. I have been honing my craft as a photographer for over 8 years now.
- My customer service skills: I try to never leave people hanging, am responsive, friendly and work to put my clients at ease.
You also get commercial license rights with brand photography. What does that mean? It means I am licensing you to use my intellectual property which is used to help sell, advertise or market a product, service, person or persons. You can alter the photos any way you see fit to benefit your branding. You can make as many copies as you like etc. Usually other photography genres do not allow this and it is often stated in your contract.
Now let’s get to the juicy part how did I arrive at my pricing structure?
- For One session I spend on average 3-6 hours physically shooting with most of my clients.
- Often an hour each way in travel (plus travelling to locations in between).
- 2-3 hours in consultation with my clients emails back and forth as well as over the phone planning.
- About 3-4 hours editing and uploading each session
That can add up to about 10-14 hours spent with each client.
EQUIPMENT
This of course has been purchased over the years…. but guess what? It’s nearly time for an upgrade. I am thinking of switching to a mirrorless system from a DSLR system (if you’re curious why, feel free to reach out) I have a good $10,000 + dollars worth invested in photography equip and if I upgrade, I will be spending roughly $5-$10,000 again mostly all at once.
INSURANCE
$500 per year
BUSINESS COACHING AND CONSULTING
Currently $600 + tax/month but have previously invested more
MEMBERSHIPS
- Photoshop/Adobe membership: $200 per year
- Gallery Hosting membership: $350 per year (where you view and download your pics from)
- Web hosting and web maintenance with a developer: $1500 – $2000 per year
- Social media planning app: $180 per year
- Email service provider: $400 per year
BOOKKEEPER
$1200 per year
ACCOUNTANT
$ 500 + per year
CLOUD STORAGE AND PORTABLE BACK UP DRIVES
$200-$500 per year
This year I also had to purchase a new laptop and monitor so tack on another $2800
PERSONAL DEVELOPMENT AND COURSES
usually around $1000-$3000 per year
I am sure I am missing stuff, but these are just the basics, add in office supplies, marketing materials, vehicle maintenance, utilities, meals/coffee’s out with clients plus, behind the scenes time spent and many other tidbits it takes to run a business and you can see why photography is an investment.
“But Stacey” you may say I’ve seen an Ottawa brand photographer offer sessions for $100, how do they do it?
Again, it goes back to quality, experience and expertise. If someone offered what I do for $100 I would have a serious think about the why if I were purchasing. Maybe they are not a registered business, maybe they are not insured, maybe they are just starting out, maybe they are eating all the costs it takes to run a business and it won’t take long before they realize they are not making any profit, maybe they do it as a side gig. These are all things you need to research and decide if it is worth it for you to invest in the right photographer, just as anyone who wants to use your services and products has to do before they invest in you.
So. Are you being transparent about what you charge and why? Are you demonstrating your quality through advertising, communication, social media, phone conversations? Can your clients clearly see the difference between you and the $100 guy/gal?
If not, then you may have to find ways to better demonstrate it through improving customer service, quality of messaging through social media and advertising and marketing/branding.
If you are not staying on top of getting your message out there, finding ways to stand out and delivering quality services, you will likely soon drop off the radar and not stand out as a leader in your industry.
Ideally, we all want to work towards the place where nobody will even question our pricing. It is what it is because the quality is there. Stand firm with it, believe in your pricing, be transparent, know your costs of running a business and making a profit and that confidence will come through when clients come looking for you.
