pricing for profit (photography) joyvertz

PROFITp r i c i n g y o u r p h o t o g r a p h y f o r

s i x l e s s o n s

l e a r n e d t h e h a r d w a y

www.joyvertz .com (2)

1 Find an hour of uninterrupted time

2 Grab a healthy snack and beverage of your choice

3 Print out this booklet

4 Plan to make notes in the allocated section

5 Have an open mind about pricing (it really is fun!)

6 Be willing to try new things

HOW TO USETHIS BOOK:

source: brian tracy

“If the first thing you do when you wake up in the morning is eat a live frog, then nothing worse can happen for the rest of the day!”

Brian Tracy says that your “frog” should be the most

difficult item on your things-to-do list, the one you’re

most likely to procrastinate on; because, if you eat that

first, it’ll give you energy and momentum for the rest of

the day. But, if you don’t...if you let him sit there on the

plate and stare at you while you do a hundred unimportant

things, it can drain your energy and you won’t even know it. H

WELCOME

2 www.joyvertz .com

Pricing is a careful combination of formula and

demand. You must weigh the products that

all clients will want (i.e. Albums are great because

clients can get a lot of images in them!) with your

total costs it takes to create that product (COGS =

Cost of Goods Sold).

Many photographer fail to factor in the time they

spend into their work. YOU are the most valuable

cost of your product, and in order to be happy and

fulfilled with photography, earning an income is

important! Pay yourself first.

The only way to change the PRICE of your product is to:

1 Change the expense of the product.

2 Change the time spent on the product.

3 Change how much you pay yourself.

Reduce or increase product price based on these three things.

PRICING IS A FORMULA, NOT A GUESS


When I began, I scoured the

internet and asked many other

people what they sold specific

products for. I grabbed numbers

that “sounded good” and that

I thought my clients would feel

comfortable paying. As I learned

more about profits and true costs

to do business, I realized that I

was not as profitable as I could

have been, nor was I paying myself

consistently. This caused issues at

home because my business took

me away from my family and

social obligations without the

payoff to make it worthwhile. I

used this opportunity to examine

all of the costs of doing business

and re-evaluated my prices to pay

myself first.

lesson one :

joy’s story

www.joyvertz .com 3 www.joyvertz .com (4)

This is probably one of the biggest mistakes I

see made often. Photographers collect pricing

from their competitors, analyze it and design their

price list to be a slightly better version of all of those

they collected. It is less important to be conscious of

what your competitors are doing all around you and

a better use of your efforts to worry about standing

out from the crowd.

IGNORE YOUR COMPETITORS’ PRICING

I did not know how to price. I

was so concerned with making

my clients love my work, that I

pushed the important business

aspects off to the side. I gathered

other photographers’ pricing

from the internet and used that

to create my own. I distinctly

remember having a $450 sale and

feeling elated! The price list I used

as inspiration had $450 as one of

the top packages-- so certainly

that is a good sale, right? I spent

a few hours carefully editing the

order and sending it to the lab.

My lab bill confirmation was for

$285. My heart sunk as I realized

that for $165 I just spent over 10

hours with one client. After taxes,

I was making minimum wage.

lesson t wo :

joy’s story

DO NOT COPY ANYONE ELSE’S. You do not even know if they are making a profit!

2 www.joyvertz .com www.joyvertz .com (5)

It is extremely easy to offer a wide variety of products

because there are a lot of different options available

to us as photographers. Our labs and vendors

come out with amazing new products each year and

while I love to keep my product offering fresh and

contemporary, I add new products cautiously.

It does not make sense to offer every product

available to our clients because they will be

overwhelmed. Overwhelmed clients resort to

purchasing what they know. Most clients “know”

8x10’s and 5x7’s and will resort to ordering small

prints when they are confused.

It is also not wise to leave products on your printed

price list that are rarely sold. For example, we do

hand painted images at our studio which we sell

approximately 4-5 times per year as they are a higher

end item. We took up a significant amount of space

on our price list to explain and show something that

we rarely sold. Instead, we eliminated them from

our printed price list and still present them at their

viewing and ordering appointment. Removing more

unique and less popular items has greatly simplified

our price list. The benefit is that clients are more

easily able to navigate quickly through the products

and offerings we have.

BE CAREFUL OF YOUR PRODUCT OFFERING

I attended a large convention

with the excitement of a first-

time attendee and came back

with stacks of new products that

I immediately implemented. I

ordered samples of everything and

was convinced that ALL of my

clients would just fall in love with

all of the albums, acrylic, metal,

round, image blocks, notepads,

and different finishes just like I

did!

I presented the options to my

clients who were overwhelmed

and left ordering only gift prints

or small items because they

were confused and ordered the

products they were familiar with.

lesson three :

joy’s story


We all get inquiries that call wanting something

drastically different than where you have set

up your business to go. Consider who your target

market is and if this aligns with your overall business

strategy.

Do not base doing sessions on whether or not it

could possibly have marketing benefits that will bring

in other sessions if it will not be profitable. Seldom

do referrals flock in the way a client may promise they

will. If they are not in your target market, chances are

their friends are not either.

When you have inquiries that want different types

of sessions or different ideas than what you can offer,

it is OK to say no to those clients.

Tactful Ways to Decline a Job:

1 My instincts tell me that I am not suitable for this

2 This is a great idea, but my heart says I’m not the

right person to get involved

3 I do not love this project, which means I’m

probably not the right person for it

IT’S OK TO SAY NO

My clients started to walk all over

me. Plain and simple. I was busy

all the time, but not making money

and not doing the shoots I really

enjoyed. It was draining and took

time away from what I did best. I

had such a need to be a “pleaser”

and make everyone happy that I

would absolutely shoot a 3 year

old birthday party on a Saturday

afternoon instead of taking my own

children to the zoo. Because I did

not know how to price my work

effectively, I was doing the work

for too low of a rate. I resented

my business. When I nailed the

formula for pricing my work (and

there IS a formula) I gained the

clarity I needed to say “no”

lesson f our :

joy’s story


HOW TO SAY “NO” BY SAYING “YES” Clients can be hard! People are more savvy shoppers than ever, and it is easy to get tripped up when

a client asks for something that goes against your policies or won’t make sound business sense.

A very good technique to use when a client asks for changes, wants additional images, wants more than

what is included, wants a discount etc...Always say YES! It works every time. (Trust me!)

Here is how it works:

Client has an objection such as, “Can you give me a discount on these?”

To answer you always say something affirmative, followed by the condition that must be met to get what

they want. For example, “Absolutely! Our larger packages include a discount!”

Here are some examples:

Objection: Can you take out the tan lines, glass glare and change my shirt from black to white?

Answer: Absolutely. It will be approximately $60 for the additional retouching.

Objection: Can you take out the tan lines, glass glare and change my shirt from black to white for free?

Answer: Absolutely. Retouching that extends beyond the basics retouching is free with all prints 16x20 or

larger. If you need it on a smaller image, its just $60 per pose.


KEEP IT SUPER SIMPLE

I tried to do too much. I tried to

offer too much, sell too much,

and thought my price list needed

to appeal to everyone. I had 15

(yes, really!) packages and clients

glossed over them because it was

just too much to read. 50% of

my sales left to “think about it”

because they were overwhelmed.

When clients left or felt confused,

my sales went down.

lesson f i v e :

joy’s storyYour clients should be able to at a glance get a

sense of the product line you offer and how they

can expect to spend. If you have outdated products

on your price list, remove them immediately and

reprint your price list.

Clients have one goal in mind. They want to get

the most amount of images and variety for the best

value. Having a confusing price list will overwhelm

clients. They will tend to tune out and “settle” for

what they do understand (usually small prints) instead

of what you really want them to purchase.

Proper price lists and orders that satisfy your needs

for profitability are one key to a happy, fulfilling

business in which you are valued.


IS YOUR PRICELIST PROFITABLE?

YES NO

■ ■ I have more than 5 collections

■ ■ I have products listed that are rarely sold

■ ■ My pricelist is self printed on printer

■ ■ My clients are confused by prices sometimes

■ ■ My clients leave “to think about it”

■ ■ My prices are influenced by my competition

■ ■ I’m not sure how I came up with my pricing

■ ■ My sales averages are lower than my goal

■ ■ Clients get a big variety of images for less than my Happy Place Sale

■ ■ I feel undervalued / unappreciated at times

■ ■ I’m nervous to discuss price with clients

■ ■ My clients do not buy what I want them to

If you answered “yes” to any of these questions, then you need to take steps toward understanding how to price for profit.

checklist

3 www.joyvertz .com (10)

Your middle package will most likely be your

best seller (If you don’t give it all away in a lower

one). When you want to add additional packages,

take away from bottom, add to top because your

clients will gravitate toward the middle. Offer two

middle packages because often they will select the

higher of the two middle packages.

People gravitate to collections because it implies

a value and also is easy and convenient. People

assume it is a popular selection, which makes them

feel comfortable to make the investment, knowing

that other people have made the same choice.

Are your packages deeply discounted? They do

not need to be. Collections imply value, but it does

not have to mean a huge discount. “Value Meals”

at fast food restaurants have about a 3-5% discount.

Popcorn and Soda packages at the movies have

about a $0.50 discount on a $10-12 package. Many

places do not even offer any noticeable discount on

packages and they are merely there for convenience.

ENCOURAGE YOUR HAPPY PLACE SALES

In 2003, After I had my expenses

nailed down, I knew that for the

amount of money I wanted to

personally make that my happy

place sale needed to be $750

minimum at the time. This is the

minimum amount that I wanted to

make per session to cover expenses,

pay myself first and have a healthy

profitability level. I could not

understand why my average sale

was $200 under this and I dug into

the product mix I was offering. I

realized that my two most popular

products were collections-- both

priced under my happy place

amount. This means I was actually

encouraging and inviting clients to

spend less than I wanted them to

spend. I left thousands of dollars

on the table.

lesson s i x :

joy’s story

Tips on How to Find your Happy Place

Finding your Happy Place Sale is a process that requires some thought. You will need to know how

much in a month you need to bring in to cover any bills as well as pay yourself a salary.

Take this number and divide it by the amount of sessions you want to do in a month and that will

become your target number for your “Happy Place Sale”

Some of the expenses you will want to consider:

Do not forget Capital Expenses such as cameras, computers and lenses!

When I purchased my Nikon D3x for approximately $7000, I learned it would “last” for around 750

sessions on average. This means it “costs” me nearly $10 just to turn my camera on for a session (not

including CF cards, maintenance, cleaning etc..).

Lastly, don’t forget to pay yourself!

Postage

Donations

Entertainment

Rent

Legal Fees

Permits

Utilities

CC fees

Repairs / Maintenance

Props

Bank Fees

Insurance

Marketing

Misc Expenses

Mileage

Phone

Vehicle

Education

Internet



WILL YOUR PRICELIST MAKE YOU HAPPY?

YES NO

■ ■ Does your pricelist allow

them to get a lot of variety and choices for little investment?

■ ■ Can a client buy lots of small prints for less than a large print?

■ ■ Do you sell what you want to sell the most?

■ ■ Are your most desired items in your packages than are below happy place?

■ ■ Are clients rewarded for

larger purchases?

■ ■ Are your most “in demand”

products ONLY in your

higher packages?

■ ■ Are there products you hate

selling in your most

popular options?

■ ■ Are your collections discounted deeply?

checklist

TIP: WHY NOT OFFER A DISCOUNT?

If it fits into your overall business

strategy to incentivize clients some way,

I would suggest a gift with purchase

instead of a discount. The perceived

value is the same, but the profitability

is more favorable.

For example: If a client has a $1000

purchase and you offer them a 15%

discount, they will write you a check

for $850. However, if you offer them

a gift with a value of $150 with their

purchase, the perceived discount is

the same at 15%. The difference is

that they will write you a check for

$1000. Even with the additional cost

of the $150 product you will still end

up with additional profit in your pocket

and your client still feels like they got a

wonderful value.


YES NO

■ ■ I am easily frustrated by pricing my work

■ ■ I had several yes’s

checked on page 8

■ ■ I’m overwhelmed by pricing

■ ■ Numbers confuse me even though I understand concepts

■ ■ Pricing is my least favorite part of business

■ ■ I know I need to change my pricing

■ ■ I know my pricing is too low

My Happy Place Sale Is: $ _____________________

My biggest hurdle with pricing right now is:

____________________________________________

____________________________________________

____________________________________________

My biggest hurdle with my current price list is:

____________________________________________

____________________________________________

____________________________________________

My clients have given the following feedback on my price list and pricing:

____________________________________________

____________________________________________

____________________________________________

MY NEEDSchecklist

FREE STRATEGY SESSION CALLSIf by filling this out, you need to take steps toward understanding how to price for

profit, I offer {FREE} 1 on 1 Strategy Session calls. To find out if you qualify, fill out

the survey at: http://www.joyvertz.com/strategysession.

– important –

READ THIS IF YOU ARE PORTFOLIO BUILDING

This is the most exciting and best time. If I were going to go back in time, there are many things I would

have done differently (and lots of things I’m glad I did right from the start) but the best advice I have

if you are newer to the business is to market to your ideal end target market from the start.

Newer photographers feel their work is not “good enough” to charge full price and they enter a stage

of portfolio building where they offer discounted pricing. While it is a fantastic idea to practice and build

to get to the level you want to be at technically, the biggest mistake you can make is to offer very low

(often non-profitable!) prices that do not reflect your ideal target market.

Here is an example: You are a new photographer, offering “portfolio building” sessions for $75 just to

practice and grow your customer base. Your eventual target market is boutique high end, but you, being

new, cannot justify asking clients to invest $500-1500 on a session yet. (This is totally normal!) The problem

though is that, your portfolio building sessions are not your target market. Therefore you are spending

a year or more working and investing in a business (and your clients who are not in your target market

are referring other people to you-- likely also not in your target market). Before you know it, you have a

client base of people who are all expecting to spend $75-150 and your business has built itself smack in

the middle market. Your choice now is to adapt to this price point and trim some of the services you have

previously offered to now become profitable OR you can scrap your year of work and have to start over

building a new client base to match where your business goals would be.

Ugh! Is that you? No worries. Fix it, immediately! Right now, (like put down this booklet and start jotting

some notes!) start to develop your dream price list that will appeal to your dream client! Scary? Trust me..

this will work. Implement it now (like effective tomorrow!) and don’t look back.

Tip: If you are still portfolio building, give each person your dream price list, and a gift certificate valid

for a complimentary session plus $X print credit.

I would make this equal to approximately 2 1/2 small prints. Make it an amount vs. specific products

because this will give your clients the experience of being able to select what products they want. If they

want something over and above your gift certificate, they can pay regular prices for it. If they want only

what the gift certificate allows, by giving them something equal to a little more than 2 full prints, they are

likely to buy 3, as many people do not like to leave an ‘unused’ credit out there.

Remember: Portfolio building is not only about practicing. It’s also about building your business through

referrals. Make sure you do not spend your time building your portfolio with your non-ideal target market.


www.joyvertz .com

fa c e b o o k : Joy Vertz i n sta g r a m : @joyvertz t w i t t e r : www.twitter.com/joyvertz e m a i l : [email protected]

PRODUCTS JOY LOVES

m i l l e r s www.millerslab.com p r o s e l e c t www.timeexposure.com

z e n f o l i o www.zenfolio.com (discount: r 2y - y r r - g e r ) l a r s o n www.larsonent.com s e n i o r s i g n i t e www.seniorsignite.com

h i - f i s o c i a l w e b www.hifisocialwebmarketing.com k at i e l o e r t s www.loertsdesign.com

Joy Vertz, has grown in 6 short years from a one-woman show in her basement to now running 2, thriving high end, boutique style studios

with a team of 7 employees. Joy is a business person with a firm grasp on the process of running a successful business.

If you are struggling with anything business related or just want to make more money, talk to Joy.

“The moment you make a mistake in pricing, you’re eating into your reputation or your profits.” - Katherine Payne

pricing for profit (photography) joyvertz

Documents