How Do You Set Your Package Prices?

I would like to know how others set up your photo package price right now. The

three-time principle doesn't seem to work these days. The print price can be

very different from various photo labs.

 

Thanks for your inputs.

I look at what others in my portion of the industry are charging, then work out my prices based on what they need to charge vs what I need to charge. For instance, I'm not travelling all over the country week in and week out, so do I need to charge quite as much? But then my volume is far lower, so do I need to charge so little? Complex I know, but ultimately depends on others around you.

>>> Complex I know, but ultimately depends on others around you. <<< (WAR)

 

Complex, I agree.

 

But ultimately dependant upon those around you, I strongly disagree.

 

The sole premise of setting a selling price, is to ensure the liquidity, cash flow and ultimate profit of the business.

 

Allowing other to set the guidelines to control these factors is business suicide.

 

Re the complexity, one very simple formula is this:

 

 

SP = CP + OH + NP

 

 

SP = Selling Price per unit

 

CP = Cost Price per unit

 

OH = Overheads (ALL business expenses, per unit being equated, including owner's wages, for time expended)

 

NP = Net Profit (expectation or goal) per unit

 

Many small business models, however, include (or assume) the owner`s wages are part of the Net Profit, which is incorrect.

 

This equation can be broken down to suit any size unit(s, and should be tested across various parcels (eg one 10 x 8 print through to a whole Wedding Package) to test its viability and accuracy across the whole business model.

 

 

WW