Competion Undercutting Prices

[cmbyjackie]

<p>I started my photography business approximately 3 years with the hopes of building it up with new customers. A few months ago a young lady in the same town started her own business and has undercut all of the area photographers pricing, where it has made it difficult to compete. She is practically giving her work away. Her pricing is near cost, to where she can't be making any money. What would one suggest to deal with this method of stealing the work from the competition? Furthermore, her business name is very similar to mine.</p>

[mike dixon]

<i>What would one suggest to deal with this method of stealing the work from the competition? </i><P>

Produce work that's so clearly superior to hers that you are not competing for the same customers.

[craigd]

<blockquote>

<p>Furthermore, her business name is very similar to mine.</p>

</blockquote>

<p>Have you trademarked your business name? If not, then you may be out of luck on that point, especially since "Captured Memories" isn't a terribly original name for a photography business.</p>

[john_jovic]

<p>Welcome to photography in the 21st century. Photography is a commodity in most markets. There's a glut of photographers willing to make very little money for their efforts, often on a part time basis. I don't see that changing any time soon, except possibly getting even worse.</p>

<p>Offer a superior product and service, yadda yadda yadda...</p>

<p>Or offer an inferior product and service and compete! Your market will tell you what they want, ie more expensive and 'better' or simply a cheaper product where they are happy to cut some corners and save money. Is your new competitor very busy? If so then that should be telling you something.</p>

<p>If your new competitor isn't making money then how long can they last? They might be happy with their returns which might seem quite poor to you.</p>

<p>JJ</p>

[bobcossar]

<p>Mike Dixon says it all.</p>

[leicaglow]

<p>Jacquelyn, May I suggest a book that will straighten you out and give you the upper hand against your "competition". If you read this book, I doubt you will call them the competition any more: </p>

<p>Author: Jay Abraham<br />Title: "Getting everything you can out of everything you've got."<br />Available: New or used from Amazon.</p>

 

[daverhaas]

<p>As John said welcome to the 21st century of photography. </p>

<p>And FYI - The competition is everywhere... I was at an arts and crafts store this past week and when I got home I noticed a flyer in the bag - it was an ad for a national photography company doing baby photos at this arts and crafts store. Their price? 9.99 for 5 sheets of photos. (same pose). </p>

<p>My 13 year old - looked at it and laughed - then asked if I was jealous - to which I responded - "No - I'm sad" - she thought about for a second and said I think I get why you're sad. </p>

<p> </p>

[john_h.1]

<blockquote>

<p>What would one suggest to deal with this method of stealing the work from the competition?</p>

</blockquote>

<p>No one is "stealing" anything. Follow Mike Dixon's response.</p>

[starvy]

<p>Hi Jacqie,<br>

This is one of the most difficult situations to deal with when running a small business. I ran a customisation business for almost seven years and had to put up with many an upstarts. While I did not survive the recession as a result of major supplier problems, my tact with competitors had always been to really focus on my core customers. Since I had many regulars, I took an interest in getting to know how their business was going and kept a constant communication channel that would ensure that I'd even tell them about the competition. My business was UK based but half my customers were from USA. So I took advantage of the time difference on having a 'livehelp' on my webpage.<br>

Clearly, the photography business is difference. However, some things never change. You really have to be confident about the quality of your service. Personality sells. Have you met your competitor? If not, why not check out the business posing as a customer or simply introduce yourself and say that you wanted to see how she was doing.<br>

Quality sells in 'most' cases but establishing that quality is difficult in a small town. In fact, creating your niche is well nigh impossible and most of the businesses owners who post here might think they are unique but being a craft, there can only be little difference in the work of photographers once they have attained a certain level of dexterity. The ones who have survived have done so though talking to their existing clients and proving to the clients that the work is well worth paying for. <br>

However, new customers are hard to come by unless recommended by existing clients who are so well impressed by quality. When you are in the wedding business or portraiture, you really have the chance to impress by imposing your personality. So basically, learn to perfect a smile, talk to the older people who have children who might be getting married. Talk to the youngsters who hover around you so their parents inevitably end up coming over at some point and talking to you. Impose your personality not to get in the way but to mingle and soak up the atmosphere. Your next major shoot should be thought of as the best shoot you have ever done. Really make the best of whatever communication you have with the customer and make sure the prints are better than what you had done in the past.</p>

[kevin_delson]

<p>In the business world, people "in the know" buy value, NOT price.</p>

<p>I've dealt with this on numerous occasions.<br>

This does not mean I always win out against the "budget only" minded; though the ones who seek the ultra bargain, often get exactly what they paid for; they are NOT the client I seek nor target.</p>

<p>It is YOUR responsibility as a business person to educate your clients.</p>

<p>Much more could be written on this business topic...books have been filled with this subject.</p>

<p>Have a look at Dan Heller's website as he speaks to this much more eloquently than I.</p>

[tonybynum]

<p>Improve your product, improve your value . . . </p>

[james_cook14]

<p>The thread is full of good advice. Low-baling competitors are like Whacka-a-mole. Whenever one disappears, another pops up. You have to learn to live with it.<br>

The key to survival is to rise above it. Be the best and follow a lot of the suggestions already provided.</p>

<blockquote>

<p>most of the businesses owners who post here might think they are unique but being a craft, there can only be little difference in the work of photographers once they have attained a certain level of dexterity.</p>

</blockquote>

<p>As long as you see it only as a craft, it will be just that and your work will be perceived as such by others too.<br>

Rise above that perception, push yourself rather than applying self-limiting labels. No matter what kind of photography you're doing, there are some that have been great at it and have their work in museums. Study their work and figure out what set them apart. Then use that knowledge to set your own work apart.<br>

At that point, the cheap competition won't matter.</p>

<p> </p>

[colin_bradley2]

<p>Some basic rules about business that apply to all Business.<br>

Know your market, & where you are in it.<br>

Be as good or better than your competition in terms of service and quality<br>

Know what you need to charge and stick with it<br>

Never consider working for reduced rates or Nothing as an investment strategy, your customers will take you for a Mug.<br>

Only make commitements to cost and srvices if it`s contractual, and always ask for staged payments....never do credit, you are not a bank.!<br>

Many times i have turned away the promise of large amounts of work for little or no profit, my philosophy is simple I would rather stay at home and make nothing rather than work hard for nothing. You will have more time energy and a greater feeling of satisfaction when you do work and get well paid for your efforts....so be selective and DON`T BUY WORK.<br>

Try to support yourself with something else untill you build a client base & Remeber this....<br>

ALWAYS CHARGE WHAT YOU WOULD LIKE TO MAKE...People will respect the fact that you know the Value of your own Sevices..<br>

Following These simple rules will help you do better work / work less / and make more...Work hard at being the Best you can, this is Your Best Investement, and enjoy your work...!</p>

[mariosforsos]

<p>All good, solid and very practical advice. I will only add this: see if you can reduce your prices (without affecting the quality of your work) by employing better business and organisational practices. I usually can underbid photographers offering the same packages by having a significantly more streamlined workflow, being able to guarantee delivery times, having a more organised presentation system - overall a more professional outlook which my customers prefer over something else, even if that "else" is slightly cheaper. Also better workflow and business practices allow me to charge less because, for example, post-processing takes me significantly less than most other photographers (less time spent, lower cost to the customer).</p>

[colin_bradley2]

<p>I get What you are saying here Marios, speed is everything in any business. We could all make a fortune if we could do things in a fraction of the time to the competion, Post processing is an area I could Improve on myself......! and an area of photography that deserves more time than we can give here.<br>

Kind Regards......Canoncol</p>

[jon_seneca]

<p>This new photographer probably doesn't have overhead, does this part time and makes most of her money at her real job. Reach out to her and see whats she's all about. Their has been a huge decline in traditional portrait photography since the wide spread ownership of digital cameras. You have to adapt and set yourself apart from her in order to compete. Maybe try to lower your costs so you can pass on savings to the customer without affecting your profit margin.</p>

[ianivey]

A number of people here have suggested lowering your prices. I suggest that you consider raising your prices, assuming

your work and your marketing savvy are superior or you can improve either or both. Competing on price is a losing

strategy unless you have the leverage of a very large company, or just don't care about (or can't produce) quality.