As a wedding photographer with a young family, my weekends are sacred to me. I always knew I never wanted to be “high volume,” but of course I wanted to make as much as possible per client to scale my business. Over the years I’ve learned a number of ways you can increase your client accounts while receiving raving reviews and not giving up more weekends! Hint: if your clients are spending more with you, it doesn’t mean they’re unhappy clients. The experience and value you provide just needs to match the price.
How you price your products and services plays a larger role in the sustainability of your business than you may think. Here are five photography pricing pitfalls that may be harming your business, and what you should do to fix them.
For the past three months in The Business Corner, we’ve been building your price list from the ground up. While it would appear that we now have a price list, there is more consideration that goes into price list design than simply listing every product you offer. What we have now is a list of items to sell, which we are now going to curate into a functional price list that sells for you.
For the past two months in The Business Corner, we’ve been building your price list from the ground up by first determining a retail value for each product you sell. Last month, we looked at alternatives to the cost-based pricing model, examining products and situations for which cost-based pricing doesn’t work (November 2018, “Your Dream Studio: Strategies Beyond Cost-Based Pricing”). One product we briefly discussed last month that breaks the cost-based mold is digital files. For this month’s theme of digital strategies, let’s further explore how to price and sell digital files.
Cost-based pricing is an excellent place to start when trying to determine what to charge for a product, but it doesn’t work for everything. This month, we examine additional factors that may break the cost-based mold. Some strategies allow you to charge more than what cost-based pricing suggests, while others force you to charge less (or get creative).
In last month’s Business Corner, we discussed controlling one of the two types of expenses in your business: general expenses, also known as overhead. This month, we examine the other form of spending, cost of sale. Cost of sale includes all money you spend serving a client.