change in business plan

[brittany_r._dunks]

<p>Hello All,<br>

I go back and forth with the idea to change how I run my business. Currently I do weddings and portrait sessions the most (baby, maternity, family). This post has more to do with portrait sessions, my wedding packages are pretty competitively priced.<br>

I charge a flat rate based on their needs in which I include a CD and an online album for printing through smugmug. I don't really want to change that, I am not the type of person who wants to sit and fulfill print orders, I'd rather shoot, edit and send them the photos and be done with it.<br>

I do get some sales through my smugmug, but I do not upcharge them much so it isn't a profit-maker, it just gives me a way to send them online however, if asked, I do recommend people use their services over say, walmart etc.<br>

The thing that bugs me is I KNOW I can make more money if I charge for prints and/or a CD release. I feel that everyone wants and loves that they get a CD and I would like to continue to do that. <br>

I feel that I could get away with charging much more for my flat session rate because I include the CD but I am fearful that since I've developed a network and clientele with my current (too cheap!) rates that I'll be starting over or it'll be a shock to people if I raise my prices say, $100-$200 in a day.<br>

Has anyone ever dealt with this? Transitioning from one business model to another and how did should I do it?<br>

I feel like I can slowly raise prices, which I have already done, but I don't think I want to wait too much longer b/c I'm getting over-worked. I feel if I raise my prices it'll keep me at a better pace while still not losing much money.</p>

<p>thanks</p>

<p> </p>

[brittany_r._dunks]

<p>Also, I get a lot of repeat clients and referrals. I take this into account and sometimes give them a little discount if they book me multiple times. But I feel like I need to stick with similar prices for these people, even when I raised my prices, which isn't fair to new clients (that may know them). <br>

I just feel stuck!</p>

[leicaglow]

<p>Brittany, Could you quote your price for the CD package, and if someone balks, give them the Smugmug option? Can you come up with some compelling reason to buy the CD package that would make them want to select that option? One of my divisions also creates software, and we often find that people much prefer to pay extra money for a nice CD than to have to download the software. You could create nice multicolor CDs or DVDs for less than $1 each (DiskFactory.com and many others). Then you could burn the project to the media. I don't use Lightroom, but rather ACDSee, but I think LR has the ability, like ACDSee to burn CDs right from the folder you're in, and you can edit the image, then select the PP ones you want to burn to the CD.</p>

[aimpic]

<p>If you don't make a profit, you will go broke and get a reputation for nothing work.<br>

Better start building the right reputation now and make a profit.</p>

[kristyberends]

<p>I dont think it matters a ton if you keep your sitting fees low and mark up your prints, or just package it all together, as long as you are covering your costs and making a nice hourly wage on top of it. I sat down with my business minded husband and went through all my equipment, how much it costs, how long it lasts, how much I drive on average to get to a client, how much time I spend in the car, with the client, and how much I spend on gas even. Add in software, marketing costs, prints, etc..., and I came out with a nice template for creating custom prices, covering my costs, and paying myself around $30-$40/hr (depending on how hard the client pushes on price) for every minute I working on photography, whether editing, driving, or shooting. I recommend really understanding your costs and your time and making sure you cover your all your bases. This is nice to have when someone wants a customized package. For instance, I had a client ask for a trimmed back wedding package with only about 5 hours of coverage and cd with release. I could easily determine what that would cost. You should balance all this with your personal style of selling and what has worked with your clients in the past.</p>

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[aimee_pieters]

<p>You've found a niche and you have a reputation for your work, your service and YES, your pricing. If you want to make more money, you're going to have to move up the ladder and basically find a clientele who will spend more money because the clients you have now may be at their limit.<br>

Here are some suggestions and please don't use my numbers, they're just examples. If you have trouble following this, please email me throught this site.<br>

If you're current rate is $200 and includes 4 items (shooting, disc, posting, etc.), DON'T just raise the price!<br>

Offer a new product at $200 that only includes 2 or 3 of those same items and offer another at $300 that includes 5 or 6 items. This way when a former client or their friend call you and they're shocked by your price, you can say that your NEW product offers them more for more money OR for about what their friends paid, you also have a package.<br>

Let me know....-Aimee </p>