Pricing your photography

June 21, 2011
5 minutes read

This article was originally written by Matthew Kauffmann in a blog series called “Writing Your Photography Marketing Plan,” for Black Star Rising. Reprinted here with permission, as part of Photographer’s Month.

Pricing is undoubtedly the most deceptively simple task that most photographers face. Setting prices too high will drive clients away, as we all know. On the other hand, setting prices too low leads to working too hard for too little.

Believe me, there are thousands of photographers who have gone out of business despite having shoots scheduled every day of the week. They just didn’t make enough money from them to get by.

Price for Profitability

Ultimately, you can be successful with either high prices or low prices, depending on what you’re selling. It’s not about price so much as maximizing profit (also known as income minus expenses). This can be done by selling more units at a lower price, or selling fewer units at a higher price.

As a photographer, if you are selling your services, you generally want to command as high a price as possible while still filling your schedule. That’s because you are a limited resource; there are only so many “units” of your time you can sell.

On the other hand, if you are a microstock photographer, the key to success is volume, so lower prices make more sense. If you are selling prints, you could go with either high prices or low prices, depending on your subject matter and your target clientele.

Researching the Competition

When setting your prices, a good place to start is with research. Study the pricing of the photographers in your area who offer similar services. This will give you an idea of the customary price, or what customers expect to pay.

Pricing yourself above the going rate may lead to fewer clients, but if you can prove your value or experience, or package your services in a compelling way, you can earn more money and establish yourself as offering premium services in your area.

Pricing yourself below the going rate is a strategy that many photographers use when starting out — but it can be a trap if you’re not careful. Too often, when you start low, you are never able to raise your prices to a reasonable level.

Why? Because once you establish yourself as a “cheap” photographer, that’s why people come to you. The referrals you get are from customers who do you the dubious favor of proclaiming: “Yes, I know a good photographer — and he’s really inexpensive.”

What the Market Will Bear

Another factor to think about in setting your prices is elasticity. This is the amount of stretch a client is willing to give in their purchase price.

For example, if the customary price of an 8″ x 10″ print in your area is $25, a client may be willing to pay you $27.50 — but if you raise your price to $30, they may consider another photographer. Elasticity plays a part in the annual (or more frequent) reconsideration of pricing, and as you compare your rates to those of other photographers.

Finally, don’t forget to think about your own costs when setting your prices. If you charge $900 for a day’s work, a good rule of thumb is to assume that $300 of that will go to the government, $300 to your costs, and you will pocket the last $300. Your costs include more than the cost of materials. They include studio expenses like rent and utilities; advertising costs; equipment and repair costs; memberships and insurance; assistants; gas and travel; and so on.

Some photographers price their services on a cost-plus basis. They estimate their costs for a typical wedding shoot, for example, and then add X percent for profit, and then charge that price. That’s fine for making sure your costs are covered, but it’s not the best way to optimize profits. You should set your prices based on the maximum your market will bear, rather than the minimum you would be satisfied with.

—Matthew Kauffmann

Matthew Kauffmann headshot

Matt is a photographer with over ten years of experience in wedding, portrait, commercial, and event work. His clients include the World Series of Poker, Harrah’s Casino, the Boy Scouts of America and Christ United Methodist Church.

MDKauffmann Photography

www.mdkauffmann.com

Facebook.com/MDKauffmannPhoto

Twitter.com/MDKauffmann

starter
Plan
starter
Plan
$0
pro
Plan
$16USD
$20CAD/mo
Option to accept online payments
Starting at
2.9% + $0.60
per credit card transaction
Starting at
2.9% + $0*
per credit card transaction
for first 10 transactions/mo
Unlimited invoices, estimates, bills
Add your logo and brand colors
Automate late payment reminders
with online payments
Wave mobile app
Unlimited bookkeeping records
Dashboard and reports
Auto-import transactions
Auto-merge transactions
Auto-categorize transactions
Add users
Live-person chat and email support
with any paid add-on
Digitally capture unlimited receipts
additional fee
Payroll
additional fee
additional fee
Hire a bookkeeper
additional fee
additional fee
Option to accept online payments
Starting at
2.9% + $0.60
per credit card transaction
Starting at
2.9% + $0*
per credit card transaction
for first 10 transactions/mo
Unlimited invoices, estimates, bills
Add your logo and brand colors
Automate late payment reminders
with online payments
Wave mobile app
Unlimited bookkeeping records
Dashboard and reports
Auto-import transactions
Auto-merge transactions
Auto-categorize transactions
Add users
Live-person chat and email support
with any paid add-on
Digitally capture unlimited receipts
additional fee
Payroll
additional fee
additional fee
Hire a bookkeeper
additional fee
additional fee

*While subscribed to Wave’s Pro Plan, get 2.9% + $0 (Visa, Mastercard, Discover) and 3.4% + $0 (Amex) per transaction for unlimited transactions during the offer period. After the offer ends: over 10 transactions per month at 2.9% + $0.60 (Visa, Mastercard, Discover) and 3.4% + $0.60 (Amex) per transaction. Discover processing is only available to US customers. See full terms and conditions.

See Terms of Service for more information.

By Ash Christopher
Categories:

The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. While a good place to start, these articles should not take the place of personalized advice from professionals. As our lawyers would say: “All content on Wave’s blog is intended for informational purposes only. It should not be considered legal or financial advice.” Additionally, Wave is the legal copyright holder of all materials on the blog, and others cannot re-use or publish it without our written consent.

Create your Wave account today.

Let's do this