jillianhurley Posted July 21, 2019 Posted July 21, 2019 I have been approached to take photos for a local business so they can reprint on souvenirs to sell in thier shop. They want to by the copyrights. How do you price something like that? Right now i get 200.oo for a 18X20 photo printed on glass. I really have no idea how to give them a price. Help please.
William Michael Posted July 22, 2019 Posted July 22, 2019 If what you have written is all that you know, then, your first step is to do more research. *** It is possible that they want to buy "Reproduction / Commercial Printing Rights" and that they want those Rights "in perpetuity" (i.e. 'for ever'). "Copyright" and "Reproduction / Publication / Printing Right" - are commonly confused as the latter meaning the former, which it doesn’t. I think the first step is for them to articulate exactly what it is that they want, in simple terms, rather than using pseudo-legalize terminology. On the other hand, they may simply be concerned that, if you retain Copyright, you will sell the Printing Rights to a competitor and thus they will lose exclusivity – that can be addressed contractually, WITHOUT you relinquishing Copyright. *** In any case, a suitable/acceptable price for them to pay to allow them to print as much as they like for as long as they like, can be based on many factors. I try to keep quotations as simple as possible: 1. I’d firstly ask myself ‘what’s the likelihood that the Client will need me to make “newer” or “updated images” ?’ For example an Architect / Builder etc using me as their Photographer may want Publishing Rights to use the images on their website – in this case I’d figure that they want their website reasonably up to date with their most recent achievements and in accord with the latest fashions and trends. On the other hand if this company wants a nice picture of ‘Mount Acme’ to put on their Tee-Shirts, then the same picture need not be revised, ever. 2. The next consideration I’d generally make is based on the adage “how much can the market bear” – if this is a Mum and Dad local business printing Tee-Shirts, then they’re likely not to have the same marketing budget as (for example only) Nike. So it would behove you to investigate the general business position and liquidity of this potential Client. 3. Thirdly (after they detail exactly what it is they want), I suggest that you negotiate either a fixed term (time) or a fixed number of reproductions for any one image. There are a few good arguments you can make – even in the case of “Mount Acme”, for example, having another vantage point; or another season; or simply changing the print each season, is a good idea – arguing that more choices of images on Tee-shirt they have the better likelihood of multiple sales, and different sales for return customers. Typically, I like a fixed term of 12 months. I prefer a fixed time and I’d base a fixed number upon the Client's reproduction activity, so it would mimic about 12 months, anyway. *** How I would quote (general points) I don’t quote based solely on what others charge, but it’s a good idea to have an idea what others do charge, mainly because all quotes tend to have some discussion, explanation and negotiation attached to them - and if they don't and you don't get the job, then you are not doing your job properly. General knowledge of what a Client can get elsewhere (and what quality and service level), is a good idea. I firstly price my time to shoot and to post process and all the other business stuff involved in the job (I know the rate per hour I need to sustain to keep my business viable and profitable – if you don’t know yours, then I suggest you need to.). My rate per hour does not vary from Client to Client. Then, for this job, I would add a premium for the Publishing Rights that the Client wants – this premium does take into account the points 1, 2 and 3 above. *** As a fictitious working example based on the scant details in the OP: THE BRIEF - Client ‘Mum and Dad Souvenirs’: Make and supply THREE Print Ready Images, one each of: Mount Acme; Lake Gorgeous; Vicious Falls. Supply Commercial Printing Rights for all three images, being unlimited print run on unlimited souvenir articles and all of Client’s advertising material, for ONE YEAR from day of Supply. NO third party Print Rights. *** COSTING (my working, not seen by Clients): 4 hours plan drive shoot Mt Acme, 3 hours drive plan shot Lake Gorgeous, 5 hours drive plan shoot Vicious Falls – total drive plan and shoot = 12 hours. Culling, Editing, Client Liaison and Final Post Processing 16 hours Delivery and Office-work 2 hours Emergency time to ensure Ultimate Customer Service to Client 4 hours Total billable hours for job – 34 hours RATE: $200.00 per hour, ex tax Total to shoot and supply as per brief: $6,800.00 (ex tax) *** Premium calculation based upon my research and assessments (my working, not seen by Clients) – Mum and Dad Souvenirs have been in business 13 years, seeming quite successful and they have only one competitor the location is a reasonable tourist attraction, though it is seasonal and mainly dependent upon bus tours stopping in the location: these factors don’t appear to be in jeopardy for the foreseeable future. They want to print the images on Tee-Shirts, which will be good quality imports. They presently sell (imported) generic souvenir Tee-Shirts for $24.95 each. My expectation is that one of a kind souvenir Tee-Shirts will sell for $39.95 (that’s $15.00 per item sold, GP increase) and I expect an increase in total sales provided that they retain exclusivity of the rights to print the Image. My assessment is that they presently sell 5000 Tee-Shirts a season (i.e. per year) and the cost to them is about $10 per Tee-Shirt and I expect this cost will not change if they buy ‘blank’ Tee-Shirts. Therefore I calculate that they can expect a solid $75,000.00 increase in GP, based only on present sales estimates (i.e. NOT including any increase in sales). On the assumption they agree to a 12 Month clause for Printing Rights, I conclude that they can afford to pay between 10% and 20% of the increase in GP as a premium for those printing rights - and I conclude that is a fair and reasonable price, considering that they have the ability to push sales further having unique items to sell. Final Premium 15% of $75,000.00 = $11,250.00 *** The QUOTE (as presented to Client): Quotation, Client ‘Mum and Dad Souvenirs’ Make several, cull and edit for Client choice and then supply THREE Print Ready Images, one each of: Mount Acme; Lake Gorgeous; Vicious Falls. Supply Commercial Printing Rights for all three images, being unlimited print run on unlimited souvenir articles and all of Client’s advertising material, for ONE YEAR from day of Supply. NO third party Print Rights. $18,050.00 (ex Tax) *** Importantly I would be ready to negotiate this quote, firstly by explaining in detail how THEIR business will increase as a result of them having unique sales material and how it is necessary for them to get moving on their idea before their competition gets a similar idea. WW 3
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