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Pricing

haydenwright
Mon, 19 Dec 2016 18:44:04 GMT

How do you know how to price? I've been told by other photographers that I am underpriced and should increase. However I don't want to lose business. How do you gage your worth?

modernmarket
Tue, 20 Dec 2016 14:34:38 GMT

There are a million ways to figure out pricing - there are whole books on pricing and figuring out what exact amount you need to be charging. Here is a foolproof way to figure out your pricing. Best of all you'll just need to answer a few very simple questions. Lets keep this simple! Pricing shouldn't be confusing, and you should know exactly how much you need to be charging to reach your business goals. Answer these questions and figure out exactly what you need to be charging (So if you're not good at math like me - grab your calculator!) Do not feel like figuring out the numbers yourself? Take a look at our pricing calculator that will do these steps for you as well as price what your prints and collections need to be. https://www.modernmarket.co/collections/studio-essentials-photography-studio/products/photography-pricing-calculator-we-calculate-everything-for-you-instantly Ok lets get started on the process of figuring how much you should be charging! What are your monthly expenses? This could be subscriptions, gas money, tax money, overhead, insurance. The l ist keeps going. Some have a ton of expenses, and some very little. List yours below! List them here; _________________ _________________ _________________ _________________ _________________ _________________ _________________ _________________ _________________ _________________ TOTAL: A(monthly) = ____________ Lets ADD all those expenses up and write the total above. Now lets figure out what your YEARLY expenses look like. A(monthly) x 12 = A (yearly) ___________ Next, we need to figure out how much you want to make per year. There is no right or wrong in setting this number. It needs to be realistic, but also make you a little uncomfortable. Don't pick something that seems easy to achieve. Pick a number that is going to motivate you and something you can work towards every day. Write it down here: B = _______________ Now do the math; A(yearly) ___________ + B ___________ = C ___________ You know what C is? yep - the total amount YOU need to make a year to reach your goal! Ok, now the fun part starts. We take that big number and we're going to break it into little chunks. C ___________ ÷ 12 = D ___________ (D = how much you need to make PER MONTH in order to hit your big number, at the end of the year) How many sessions do you want to shoot per MONTH? Again - pick something realistic. Shooting 30 sessions isn't realistic. Think about it weekly and then times that by 4. How many sessions can you do per week and deliver something great to your clients? How many sessions can you shoot a month without burning yourself out? Think about this number because it's going to matter a lot! Answer; E ___________ Time to do some math again; D ___________ ÷ E ___________ = F ___________ You know what F stands for?!? That sweet number right there is how much you need to make PER SESSION. See how easy that was?! Now you know what you need to work towards. How much you need to make per session. Now just for fun, i'm going to write two different examples below so you can see how this whole thing works. Maybe you'll notice something interesting in the two things ;) As you can see I only changed ONE number in the examples below. Sally has to shoot half the amount of sessions to make just as much as Sue. (this is where the whole work smarter, not harder comes in). It's ok to charge more for good quality work. By charging very little for your service, you will end up burning yourself out and won't be able to deliver something amazing to all your clients. SALLYS PRICING Expenses TOTAL: A(monthly) = 500 Lets ADD all those expenses up and write the total above. Now lets figure out what your YEARLY expenses look like. A(monthly) x 12 = A (yearly) 6000 Next, we need to figure out how much you want to make per year. There is no right or wrong in setting this number. It needs to be realistic, but also make you a little uncomfortable. Don't pick something that seems easy to achieve. Pick a number that is going to motivate you and something you can work towards every day. Write it down here: B = 100,000 Now do the math; A(yearly) 6000 + B 100,000 = C 106,000 You know what C is? Yep - the total amount YOU need to make a year to reach your goal! Ok, now the fun part starts. We take that big number, and we're going to break it into little chunks. C 106,000 ÷ 12 = D 8833 (D = how much you need to make PER MONTH to hit your big number at the end of the year) How many sessions do you want to shoot per MONTH? Again - pick something realistic. Shooting 30 sessions isn't realistic. Think about it weekly and then times that by 4. How many sessions can you do per week and deliver something great to your clients? How many sessions can you shoot a month without burning yourself out? Think about this number because it's going to matter a lot! Answer; E 8 Time to do some math again; D8833 ÷ E 8 = F 1104 Recap. If Sally wants to make 100,000 a year, she needs to shoot eight sessions, and make $1104 of each session. SUES PRICING Expenses TOTAL: A(monthly) = 500 Lets ADD all those expenses up and write the total above. Now lets figure out what your YEARLY expenses look like. A(monthly) x 12 = A (yearly) 6000 Next, we need to figure out how much you want to make per year. There is no right or wrong in setting this number. It needs to be realistic, but also make you a little uncomfortable. Don't pick something that seems easy to achieve. Pick a number that is going to motivate you and something you can work towards every day. Write it down here: B = 100,000 Now do the math; A(yearly) 6000 + B 100,000 = C 106,000 You know what C is? Yep - the total amount YOU need to make a year to reach your goal! Ok, now the fun part starts. We take that big number, and we're going to break it into little chunks. C 106,000 ÷ 12 = D 8833 (D = how much you need to make PER MONTH to hit your big number at the end of the year) How many sessions do you want to shoot per MONTH? Again - pick something realistic. Shooting 30 sessions isn't realistic. Think about it weekly and then times that by 4. How many sessions can you do per week and deliver something great to your clients? How many sessions can you shoot a month without burning yourself out? Think about this number because it's going to matter a lot! Answer; E 16 Time to do some math again; D8833 ÷ E 16 = F 4=552 Recap. If Sue wants to make 100,000 a year, she needs to shoot 16 sessions, and make $552 of each session. So now you know how much you need to make per session. It's time to sit down and make a game plan on how you're going to get that much each session. Your packages should reflect your pricing strategy. There are so many different things you can offer to your clients. You can sell digital files, prints, products, albums, a mixture of both. Once you have your pricing figured out it's time to figure out what you want to offer to your clients to make that number a reality.