Did I make a mistake?

[kari douma]

I took the plunge. I raised my prices. I had a customer that

wanted to book me for 2007, and I told her I was working out my 2007

pricing and brochures, and I would send them as soon as I got them

done. I sent them out. Another freind of a bride also wanted to

book me. I sent her a middle price between my old and new pricing,

because I really wanted her wedding and she was a friend of the

family.

 

I raised my largest package from $1500 to $2600. That is all day

coverage, from getting ready through reception. It includes

engagement pics and they get to keep their proof book (magazine

style) from the wedding and 4X6 proofs from the engagement session.

It also includes a 36 page renisance mat style album. Digital

albums are extra. I do not offer any CD of images to my customer. I

take exceptional pride in high quality. I have always strived for

the best, whether it be equipment or products.

 

Well, yesterday I heard back from both of those potential customers,

and both decided to go with photographers who charged less. Before

I raised my prices, I was debating to keep them the same, but take

the album out of my packages, so the dollar amount didn't seem so

high. But, I love the finished album, and I want all my customers

to have one. It is my satisfaction of giving them a beautiful

memeory, that I made for them of their wedding day. A seminar

speaker that I heard said "it is like asking an author to write you

a book of your life, and only asking for the workds all in a box,

telling him that you'll put his story together." When she said

this, it struck me. I want to create that beautiful story for

them. So, I decided to keep the album in the package.

 

In the last 2 1/2 years of doing weddings, I have only had 2 people

that I met with who did not book me. I'm sure it was because my

prices were so low. The problem I have is that I am a bargin

shopper. I always look for the best deal. I buy most of my clothes

and household items on clearance. I shop around for everything that

I buy, and most of the time I look for the best deal. I would

probably go with a cheeper photographer if I were looking.

 

Now, I am wondering if I raised my prices too much? I live in a

consertive area, and most of my friends and relatives are the same

as myself. I know there are people out there who spend more, but

not in my circle. This wedding photography just fell in my lap. I

love to do it, and I have a passion for it, so I think I do a pretty

good job at it. I know how much time and effort I put into it, and

I know the costs of running a business, so I don't think that my

prices are too high. On the otherhand, If I were a consumer, I

would go with the $800 photographer who gives you a CD.

 

So I guess if there is a quesiton in all this rambling, it is this:

will I get some customers at my new prices? I don't advertise, it

has all been word of mouth, people I know or friends of people I

know. I am working on a website now, so I might get some customers

there, but I really don't want to get into too much advertising.

Did I make a mistake of raising my prices that much at once?

[jfr]

The new prices aren't too high and if you lose a few customers that way, it won't matter, your new price will compensate for that (even if you lose 1 out of every 4). So your workload will get less, but the pay will stay the same.

 

The mistake you made from my POV is that you raised your prices and just told people that they'd have to pay $1000 more than they thought. They wanted the information because you were in that range and were thus interesting to them. What you could do to keep those clients is to not only raise your prices, but change your packages. That way they won't notice it as much.

[kari douma]

Thanks JF. I agree with you on they thought I was in their price range, and then I raised them too high for them. I feel the only thing that would have made my packages smaller was to remove the album. I really thought hard about it, and decided that I didn't want to do that. So, I added the engagement session for free (I used to charge more for it.) I liked the Idea of having the time to get to know the bride and groom a liitle bit before the wedding anyway.

[flirtynfun]

Kari,

Your work is beautiful and you deserve to get paid for it. If you compare your prices to other photographers around you, do you fit the same pricing structure for what the customer receives?

[kari douma]

Thank you Mike. After reading your quesiton I looked on the internet for the answer. I found photographers in my area ranging from $600-$6000. I think the majority were my price or a just under mine. But it is hard to compare because packages are so different. If they offered the album, it might have been smaller. Or, they didn't offer engagement pictures, or their shooting time wasn't the same. Or they only offered online proofing. Or they gave a high res CD.

[john at storybook pages]

In selling 'beyond price', we have to get good at differentiating what we offer from what others offer - AND...then (most importantly) helping the prospect see the 'value' in those differences - especially relating them to what the client told you was important in their wedding photography.

 

As was said in a previous discussion a couple days ago, it all starts with asking the prospect about their decision criteria - and then selling TO THAT. And in that discussion, your challenge is to open the criteria up to issues BEYOND price.

 

Price is ONLY a valid decision criteria when ALL OTHER things are equal.

 

john givens

[jon jacobson]

While your area is conservative, it does not mean they are cheap. And it does not mean they do not appreciate true value. Though, certainly, the reputation tends to be cheap.

 

What I'm finding with our clients; they understand value, they do not want "cheap," but they all do not necessarily understand true quality in photography. That's been our challenge. What can we do to educate our potential clients that there is a difference in photographic quality?

 

It was already mentioned, but it bares repeating, you've already established a market segment. You need to reestablish yourself. Advertising. Marketing. Website.

 

Plus, our market is absolutely saturated with Uncle Joes. It's not a scientific measurment, but our city in WEDJ has 70 photographers listed. Larger markets: Cleveland = 71. Denver = 68. San Antonio = 28. Nashville = 66. Even much larger markets with a greater number of photographers listed are not proportionate to population.

[stacy]

Kari- it seems like everytime I've raised my prices we stop getting calls for about a month. It's really nerve racking so I understand how you feel, but you did not make a mistake. You have figure that if you raised your price by $1000 you are not going to be getting the same clients as before so referals may slow down. It's almost like starting over if you go from low budget to mid range or from mid to high. You have to hold on- be patient and work really hard to get your name out to the right clients. You may have to start advertising and you'll definitley need a website. Good Luck- it will be fine- really :)

[think27]

Stacy is right about the lapse once you raise your prices.

 

I suggest that you book 10 or so weddings for 06 first...and then raise your prices by $200-300 for the remainder of the season.

[david_schilling___chicago_]

I would suggest that you raise the largest package to $3500-4000 and then offer three packages under that amount down to the $1500. Of course upgrade the album, offer parent albums, and some large prints. People tend to go for the middle so the $2500 package should look extra attractive. When Wendys introduced their tripple burger, it wasn't that they really expected to sell alot (altho they sold some) but what it did was cause a big increase in the numbers for the double burger. (idea compliments of Reggie D. seminar) In regards to your old prices.....keep looking forward and don't look back.

[kari douma]

Thank you everyone for your responses. I do need to look forward and not look back like David said. I have been doing photography for about 3 years (for pay), and I have not taken 1 penny to pay myself. Every cent that I have made has gone into buying equipment. Now, I do have some nice equipment, but I am tired of working for free. I guess if I don't get any bookings, I don't have to work for free right?

 

David, I agree with you. I always sold my top package, because my prices were low. Now if I make one or two bigger packages with large prints and parent albums, my $2600 package will look more appealing!

[ellery_chua___singapore]

I would suggest that you create a package to fit your previous price point - it may mean giving up an album as you now package. It could be come in 4R's only, it could become less number of pages with a provision to add pages at $XXX. I feel you need to allow the prospective to have some thing they can buy at their price point - and do your very best work so that they may find the money to upgrade latter when they cannot bear to do with less pictures. Otherwise they walk to next person on the list. Your current referal base is based on your old pricing - so this raise will make you have to start rebuilding your market again. I would suggest some prmotional freebies for this period making it clear that this for say the first 3 months of this year in the new package which should not be identical to the old - it must not be.

 

Over here where I am - the market is very saturated with new Dslr users who plan to earn some cash and gain experience shooting weddings. Which means that some full time pro have givne up fighting for more pay and have repacked down to suite the mass market....at around US$400 per wedding from getting ready to end of wedding dinner about 14 to 15 hours of coverage. The hair raising part is there are Uncle Joes willing to do this for slightly more than A US$100 for a cd with digital files. But there is higher end market - which I am trying to work towards where the package goes for above US$1400.

 

I guess the market rates over at your end are a darn sight more agreeable than over here.

[khaisy]

No Kari you did not, I agree with stacy. This happened to each one of us when we do and the phone stop Ringing. it will again. trust me but here one thing i nclude in my letter when I send it out or when I talk with over the phone ( these packages are a guideline for different packages but I will customoze one that will fit your budget and needs.

 

Good luck

[olaf_siebert___zagreb__cro]

Kari,

 

you lost 2 clients because the came to you at the moment you fitted in there budget. Now you don't fit in anymore so they choose somebody else.

 

Your prices are above average which is okay, since your work is above average. Besides, you can never be the cheapest, there will always somebody who is able to undercut your prices. Therefore, don't worry too much about prices.

 

I don't know how your pricelist looks like, but with good build-up prices you can achieve a lot. F.e., people will (almost) never choose or the cheapest or the most expensive package on your list. They will go for the midway and it might sound odd, but if you add another package on your list with value $3250 you might sell the $2600 easier.

 

Personally I riced my prices with 20-25% but I took the album out of the package and offered it as an extra (since where I live albums are off less importance then overseas).

 

Don't worry, you lost 2 clients but you will find other ones...