Pricing variations - how to explain?

This is a bit stream of consciousness but I'll try and be clear. I've been

asked to quote for a package I've not done before. So I've found out the costs

involved, I know the minimum amount I need to charge to make a profit and make

it worth my while and I'll quote that figure appropriately.

 

I've done some research though and in my area there is someone charging around

42% less than I will be charging and there is someone charging around 48% more

than I will be charging. For exactly the same thing in terms of product.

 

The person charging 42% less however doesn't take bad photographs at all. In

fact they are very very good. But they can only be charging that low if they do

not have to make a living from photography - or at least weddings (though they

are good enough to do so) - the profit margin is ludicrously low. Likewise, the

person charging 48% more is very very good.

 

I know there is more to it than just delivery of final product (service and so

on) but that variation is so vast how do you explain it to the client? Charging

42% less does not mean they are not professional and they are clearly not an

Uncle Bob. I'm not in the business of disparaging other professionals so I'm

reluctant to say "they must be cutting corners" or even "if they aren't full

time how do you know they will turn up this time next year" (which is a lame

answer anyway - probably just as much chance they will turn up as they don't

have to worry about going bust) though there is a good chance there is a grain

of truth in both answers.

 

So when my potential client says "Mr X quoted me this, his shots are great and

his testimonials read like he is the Second Coming, why are you so much more?"

how do you answer? Or do we let weekend warriors (that most of us have probably

been at some time or other, let's face it) slowly chip away at our market? Or

are you honest and just say "if he can make a living barely covering his costs

he's a lucky man."?

I myself am a weekend warrior but have recently reached the conclusion that I'm stopping all this low price stuff - for a few reasons.

 

A fellow photo.netter emailed me recently with a valid point. He has recently made the transition from part-timer to full-time but is feeling the pressure of having established himself as "low-cost". All his clients think of him as being a $1,000 wedding photographer, and his referrals therefore expect the same. His point to me is that the quicker weekend wannabes start charging high-end prices (assuming they are up to the job) the easier it is to transition to full time.

 

This has the second benefit of not devaluing the industries (and local competitors) threshold rate, making it better for all of us.

 

I would also consider the principle that should be in this to make profit, without shame or guilt. Making money and profit is a good thing, profit is not a dirty word afterall.

 

There are good weekend photographers who are very good (I suffer the enviable problem of having a well paid full time job) so this shouldn't infer I am somehow sub-standard in my weekend work. I no longer view it as a hobby and now regard myself as professional.

 

I would personally not judge myself by others standards or prices. My service is unique, my prices reflect the value of the service I provide and what people are willing to pay. I can't speak for the service or quality of other photographers. If I were to start losing business or money then I would take another look. I would (and do) walk away from business though if I feel that I will lose money, reputation or it compromises my perceived "value" in the market.

 

I tell my clients to see other photographers, and then judge for themselves. I don't budge on price.

 

Good luck.

I don't think there is any need to explain anything. Your prices are what they are. The key is to empahsize what your product and service is like and arm them with information about what to look for in professional packages. Hopefully get your clients in for a face to face and let them see & touch several wedding albums. In today's world of Craigslist shooters and some established pros shooting on the cheap, people want it "quicker, cheaper, & better". Recently I had a professional event company contact me to cover a corporate event and they asked for a quote that included all the files on a disc. Then they contacted another area pro and was quoted a price that was 40% less and asked me what I could do to change my price. Unfortunately since they wanted all the digital files and wanted them released for potential comercial/publishing use there really wasn't anything I could do so I told them if they wanted cheaper yet that they could go to Craigslist. What's really unfortunate about this is that they will find themselves in the same position as a professional event service agency and there will always be someone willing to do the job for less.

Buffet: <i>"In a commodity business you're only as smart as your dumbest competitor."</i> They might be driving daddies car, using a friends or a schools equipment; not figuring real expenses of repairs and labor burden. They might be not settup as a buiness and not reporting income. They might be retired, living on two pensions in a paid for house and just shooting for fun; not as way to make a living. Assuming the other chaps worlds is the same is risky. You really dont want to drop prices all the time or waste time with customers who consantly reduce you custom product to a commodity the same as all the other smucks. <BR><BR>Another old saying is <i>"In a price war, the dumbest competitor wins"</i><BR><BR>You are selling your services, product, experience, and hopefully not a commody.

Hi Bob -

 

The primary thing you are selling is you - your talent, vision, work, art. The customer is

buying you, and you are offering them your talent, expertise, pro-equipment, customer

service, magnetic personality, charming smile, and "products of photo processing" as the

IRS likes to call it. Don't get into a price comparison on "products of photo processing"

alone without gently reintroducing the other more important components back into the

equation. Never bad mouth the competition. In fact, encourage price shoppers to look

elsewhere - they may not be the best clients in the long run.

 

Don't get a reputation as the cheap photographer. IMO a $950 wedding photographer is

1) working themselves to death, 2) slowly going out of business, 3) cutting corners

somewhere, 4) back-loading their fee structure. Or a combination of all of the above.

 

I read somewhere and will paraphrase: Anybody can get a 5x7" print for 29 cents.

However if they want a 5x7" print with my image on it, it's $20.

 

Good Luck,

paul boyd

 

ps. Happy Thanksgiving to everyone!

Well said Paul ... happy Thanksgiving to you as well.

 

Happy Thanksgiving to all photo.netters ... I'm thankful you're all here.

r u selling a commodity, or your photography? Do you think Versaci worried about Vera Wang eating into his market when he was alive? They both have awesome products, their own specific look, and the way the MAKE YOU FEEL when you put them on is what matters. Your work, should gve your clients a one of a kind experience, pride of ownership, and make them feel great. Be aware that many lowball photogs with acceptable work, lose biz to people with money that fear the low price may not be good enough, not show up, or be competent. When you deal with a certain level of demographic, they want to buy and pay for the best, and know it is all set. They don't want to worry about someone going broke, messing up or expoing them to liability. Imagine, you worked all your life to become independently wealthy, you made it woo hoo, now, you hire a cheap photog, who's trips over a candleabra burns down the Beverly Whilshire, and of course cheapo has no insurance or assets, so YOU get sued for 150mil and now you are not wealthy anymore... Nah, think you will just hire competent pros that are lisc'd insured and charge enough to STAY IN BIZ... :) I have seen it over and over, yeah, I'd hire that person, but they don't charge much, there must be a catch, or maybe they aren't all that great after all.

 

Does that mean people of means throw money away? No. Does that mean anyone that asks about pricing is cheap? No. Usually, my clients have chosen my work and rarely ask about price. They want it, they want me. But the few that do, are not asking for a discount or to compare between other photogs, what they are really asking is; "What is it about you that justifies the investment in your work?" Those are usually folks that saw the wbesite or were referred by a past client, and need to learn more about me, my body of work, how and why I do things.

 

Photography is not a commodity sold with value added services. Without the photog's eye, its just little bits if paper. You "sell EMOTION, not Emulsion" Jefrey Blake Adams 1998

Just to reinforce what Jeff Adams mentions above (and he is absolutely right), there is another angle about pricing high.

 

In the consumer brand society we live in, there is prestige inherent with expensive goods and services. You can buy a white Gap t-shirt for $10 and buy a designer Paul Smith white t-shirt for $100. Whats the difference? The Paul Smith may be of slightly higher quality - not $90 worth of extra quality but the small embroidered logo IS worth an extra 90 bucks - for those willing to pay it.

 

Business is all about demand and supply, and often about creating demand. 9 months ago my bookings were OK but I had loads of available slots. I simply told everyone I was fully booked for a year. This creates demand because everyone wants a bit of what they think they can't have.

 

When I upped my prices I actually got MORE work. Most of the public don't really know the creative difference between average photography and stunning photography. If its expensive though - it must be good, right?

 

Therefore they will pay it. Brag value counts for a lot - I've engineered an attitude amongst my client base that I'm expensive and unavailable. Those "lucky" clients who do book me then brag to all their friends how they managed to book "Justin Hall", he's fully booked and expensive but excellent. He must be - because they paid him well.

 

Admittedly my background is marketing and advertising so I'm acutely aware of this, and by no means do I make out to my peers that I'm somehow extra-special or talented. I'm fairly average in fairness.

Justin, you make a good point but now a quick Google search on your name will alert potential future clients to your marketing strategies.

To be honest David my work is word of mouth, Googling me in the USA (.com) returns a host of other Justin Hall's - one coincidentally is a photographer. What are the chances? My main site appears on the first page but my photo.net entries don't appear for 6 or 7.

 

There also happens to be another famous Justin Hall who allegedly invented the Blog. Random.

 

BUT you raise a good point... how do I remove the entry? Do you know? I might prefer to send it as an email.

 

Thanks for taking the time to point it out,

 

j

I have to admit that I have not read through all of the responses in this thread, but as soon as a read the original question, I knew my response because I went down the same path.

 

First, when I get a client who say, "But, so-and-so will give me the same package for $x less." My response is simply, "I am sorry. I am not in business to match the prices quoted by other photographers. I do not expect the be the right photographer for every couple and I do not expect every couple to be right for me. If you decide to book with so-and-so, I understand your decision completely. If you are stil interested in booking with me, I would be happy to discuss your needs." End of conversation. It's all true.

 

On the point of setting yourself up as "the cheap guy". I agree that this is a mistake. Everyone out shooting wedding should be trying to make a profit. Anyone doing it simply for fun (in other words, just to break even) is doing themselves and their clients a disservice. I don't think that they are hurting me or the industry in general.

 

Ed

>>> "Mr X quoted me this, his shots are great and his testimonials read like he is the Second Coming, why are you so much more?" <<<

 

 

 

If the potential client was persistent to obtain a direct answer or comment, this is similar to how it would go.

 

 

 

Answer to potential client:

 

 

 

`I have quoted this product you have specially requested and throughout have diligently maintained the quality of image and personal service components our studio provides and for which we are renown.`

 

 

`I am at a loss to advise you as to how another studio can give the same coverage, maintain the same quality and provide equivalent personal service, for such less a fee.`

 

 

`I wish I could explain their cheaper price to you, but I simply cannot.`

 

 

 

(pause) and directed to the Bride if present

 

 

 

`Do you think the Rich Blue Leather bound album would look better, or does the Chocolate Brown better suit?`

 

 

 

WW

To Ed Farmer:

 

I understand and respect the way you would answer the direct question, but, I ask, why are you sorry?

 

I just do not get that bit at all.

 

WW