Pricing question

I currently have three wedding packages to choose from. My experience has generally been that when the

smallest package is bought rarely is there very much ordered afterwards. When the largest package is

bought (which the is 60% higher than the smallest package) they tend to buy even more after the wedding

making it many times twice as profitable as the smallest package. i'm planning on revamping my price

structure and would like some input. Should I increase the price of my smallest package while increasing

what you also get for the price and bring my packages closer in price range so that there isn't as great a

difference in profit? My other thought was to come up with one price and offer different packages for that

one price. I've gone back and forth with this and would like to hear what your thoughts are. I've been a

photojournalist for 21 years and have been doing weddings on the side for a few years. The weddings

have been coming more frequently the last couple of years and I've really started to hone my skills with

wedding photography and am looking to take it to the next level businesswise.

Part of the reason some people buy the smallest package and don't buy any prints are they don't have much money, or photography just isn't a priority to them. You may end up losing customers by upping your smallest package.

 

If you can afford to lose the smaller weddings, then go for it.

One thing that we've found helps our sales is to up our prices but then offer a "photo credit" as a part of the package. The credit limit increases with the larger packages. The client essentially gets $250 (or whatever the package dictates) to spend on photos from their wedding. More often than not, they'll end up spending quite a bit more than the credit since it adds up fast. Also, this increases the chances that they'll buy prints in addition to the album--would they not have had the credit, they wouldn't have bought prints...and then they buy more than their credit. This way, they feel that they're getting a deal, we increase our chances of selling more prints, everyone goes away happy.

Bob, what percentage of your clients are buying the lowest package, the middle package, and the top package?

 

If more than 50% are buying the cheapest package, you are going to have to continue to offer it for a while. However, if 45-50% of your clients are going for the middle package, you could probably safely drop the cheapest package and make your present middle the low end while adding an even more expensive package above your present high-end. If you did that, you could keep your present low-end package, if you wish, and make it available only in the off-peak months and on days other than Saturdays during the peak months.

Dave, you make a very good point. Most of my weddings tend to be the either the middle or

highest package. The bottom package runs 10-15 percent. I may take your advice and drop

the bottom package and make the middle package the bottom package and add a new top

package. Jena, I too have photo credits built into some of my pacakages, I like to give a dollar

amount worth of enlargements instead locking them into a certain amount of a certain size,

so they can choose what they want. Like you said most will order above and beyond the

amount of credit. Having the incentive to order the prints from the photo credit built in really

does help get more orders than you'd otherwise receive, I believe.

You should be making pricing choices based upon your biz plan and mktg plans. Mktg plan should tell you who your clients are, where they shop, what they buy etc, biz plan should break down all your hidden costs, fixed costs, and produce costs, plus profit, and you'll know what you must charge.

 

I always suggest top down pricing, leading with your killer everything included price, which sets the bar, if I hire a $30,000 per wedding photog for $10,000 I feel I got a great value. If I pay a $2000 photog $4500 after all is said and done, I'll not be too happy.

 

Think like a good client, staying in a 5star hotel's least expensive room, is WAY better than staying in motel 6's most expensive room. In the 5star, you ma be near the elevator, your view may not be the best, but you still have ACCESS to all the top amenities, tons of extras, to the better location and much better level of service. At modetl 6, you'll get better linens and a large bed, maybe free premium tv, then nickel and dimed to death and feel ripped off.

 

J

The difference between low and high ought to be 4x. There always ought to be a difference in profit, depending on the package purchased because bigger packages require more work.

 

EX: If your cheapest is $1000, then it sounds correct that your highest be $4,000.