Pricing

Their chatter and laughter could be heard from my kitchen window. As they came up the steps and into my home, I felt like old friends were coming by for a reunion. I saw their Facebook statuses regularly and would hit the like button countless times. But today, we would be coaching each other in person and meeting for the first time. We were geared up to talk about something that scares just about every budding, self-employed photographer: Pricing.

I'm going to give a recap of our afternoon together, but before I do I should tell you how we met. Each of us became a part of a Facebook Group page called theFixSF last year when Jasmine Star dazzled us with her bright lights in the San Francisco mission district and gave a talk about her struggles starting out and some tools she used to grow her business. One of her suggestions was to network with each other, bond, create a circle of fellow photographers. I believe the best thing one can ever do is FOLLOW the advice of those that have achieved a level of success that you admire. When someone has a little something that you want, do as they do or as they tell you to do if you're lucky enough to be the benefactor of her direct advice.

Fast forward and we have been networking and bonding via this group page for months. When the topic of pricing came up, I offered to host a casual get together and asked my friend, Heather Lussier, to talk to us about how she's been able to achieve financial success. Heather is a successful portrait photographer who specializes in pets. Her studio in Los Altos is full of cute, furry, charismatic dogs, and she's making a very good living doing what she loves. So, just how does she achieve that? Here's a brief recap of what we discussed:

1. It doesn't matter how you've landed here, you're here. So, be professional and start somewhere with a clean and simple price list that your clients can easily understand. Start with the biggest package at the top of your list and the smallest at the bottom. It's okay to put your starting rates on your website or blog, but never post your full price list, because if you do people will price shop. Instead, you want them to hire you for you.

2. Your price list will change and flux as your business grows. Monitor your income verses outcome and make alterations as necessary. Mint.com is a great and FREE tool.

3. Be sure you're considering all of the variables and non-variables. Non-variables may be things such as rent, insurance, phone bill, web hosting fees, etc. Variables may be lab orders, gas, packaging, time, equipment rental, and so on. Remember, your time must be part of the equation. If it's hard to put a dollar sign on your time, then imagine you had to hire someone to do that work for you and go from there.

4. Be confident in your price lists. Know them by heart so that when the phone rings, you're prepared to answer the inquiry without hesitation. Never apologize for your fees.

5. NEVER negotiate your fees and don't work for free. Not even for friends. Think of all the places where you spend your money: the hairdresser, the doctor, the nail salon, the mechanic. Do you haggle with them over pricing? Then why should anyone haggle with you? That said, if you feel the need to please your client, it's okay to wow them with bonus product.

6. If you're just starting out, create a "portfolio building" price list. Make it clear to whomever you're shooting that these are your rates now because you're new to the industry and building a body of work, but these prices will increase as your business grows. Remember, they are getting a great deal.

7. Are you nervous about raising your prices? Don't be. This is a great opportunity to communicate with your clients. Let them know your prices will be doubling this spring, so if you want the winter rate, book now and tell all your friends. As your rates increase, you may see some clients fall away. That's okay. New clients who fit your new market will appear, and then you get to refer your photo colleagues who are new to the field to those clients that have fallen out of your price range. It's a win win win.

8. Know your market. Know what your market is shopping for. At the same time, know what services you are stoked about offering. For example, one photog in the group lives in a rural area three hours north of San Francisco. She would only like to travel to the city three or four times a year for a wedding. That said, she needs one package on her price list that reflects what her time and services are worth for booking these weddings. And she has to feel confident telling her potential clients that she only books city weddings for her top collection.

9. It takes time to know and gauge how your business is profiting. Make it your business to monitor your sales. You can't reach goals that you don't set. Set sales goals. You'll be surprised what a difference you can make by letting the universe know what you need. Heather uses this technique for every sale and she regularly sells $1,200 to $12,000 in pet canvases.

10. This one idea alone is golden: In person viewing appointments. We were there for the portrait session, and we should be there for the viewing session. This concept works to the photographer's and client's benefit in several ways. A. Closes the sale efficiently. No more fourteen day, thirty day on-line gallery and extension after extension. Less questions and more answers responded to in real time. B. Quality control. It's difficult to say what kind of screen your client is viewing the image gallery from, but your computer is color calibrated. C. Visual, tactile reference to your product. I recently had a client who never imagined ordering a 16x20 print until she saw one on my wall. Once she saw it, not only did she order it, but once it was on the wall in her home, she ordered three more. That's how much she loved the results.  D. Improved customer service. Your clients feel cared for because you're spending time with them and walking them through the process. Especially if your client is overwhelmed/overjoyed by their pictures, it can be helpful to have a professional there to walk them through options on how to display and preserve their artwork.

I hope I've covered as much of the key points that we discussed as best as possible. If I've missed something, feel free to chime in, ladies! I have to say that much more than all of this, it was simply helpful to be in each other's company and encouraging one another. Until Heather sat me down during a lunch over a year ago, no one ever talked with me about pricing. It seemed taboo. On the contrary, it's business, and that's what we're in, so we might as well get comfortable with it and price ourselves according to industry standards. We can help each other and we can strengthen the field of portrait photography. Nothing but good can come from it.

I want to thank Heather and all the lovely ladies that came to my home. I am SO looking forward to what 2013 has in store for everyone.

xo