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.
A common mistake that many new photographers make is assuming they keep every dollar they make. Businesses cost money. Whether you only offer digital files or you are a full-service studio, there are still costs involved. Cameras, lenses, memory cards, computers, hard drives, ink, paper, pens, internet, electricity, gas in your car—it adds up. If you’re serious about making money in this business, it’s important to treat it as a business. That means recognizing your expenses and learning to budget for them.
In last month’s Business Corner, we asked you to daydream about your ideal studio and lifestyle. This month, we’re going to take these dreams and turn them into an actionable plan. In order to do so, your vision for your dream studio must be clear. We’re going to start with your end goal, and then build a plan to get you there.
If you’re reading this, it’s because photography is your dream job. It’s probably not because you dreamed of editing images until 1:00 in the morning while the rest of your family sleeps. If we’re going to build our dream job, it’s got to fit within our dream life. So what does your dream life look like? The goal is to work to live instead of live to work. Let’s figure out how to make those dreams a reality. It starts with having a clear idea of your business model, volume and margin.