September 27, 2013

Education

Pricing, packaging and profits – Oh my!

Created by Ali Coşkunfrom the Noun Project

Hi Ashley,

I want to restructure my pricing. I feel like it is to scattered and confuses people when it comes time to order (online since I havent had the best of luck getting people to do in person ordering here).

Currently I have them pay a retainer fee and after they can purchase either digitals or prints or both. But I find people just sit on their gallery.

I want to know, if I were to switch to an inclusive package that is x amount of digital for $x. How do I still encourage a sales session with the hopes to sell prints?

Also, how do I explain that all money is due before the session since now I only require a small retainer?

Thank you for your time.
Confused About Pricing

 

Dear Confused,

Pricing and sales are a tricky business. Everyone is going to have different opinions and thoughts on it, and I can only tell you what works for us.

Let’s start off with retainers. The point of a “retainer” is not just to get a space on your calendar, but rather if they don’t show up or cancel it is to recoup the funds from the opportunity to have a paying shoot with a client. If a client cancels, the retainer is therefore forfeited as “liquidated damages” – so you are protected. If you are having people pay their session fee in full before their session that is fine, but make sure you are wording it legally so you aren’t responsible for giving a refund back if they change their mind or cancel – because time/opportunity lost = income lost.

Whether or not you want to include digital files is a personal choice – but regardless of what you choose to do :: Digital files are a valuable commodity – and need to be assigned such a value. Whether you decide it’s high-end a la carte pricing or inclusive in your pricing, make sure your client understands that digitals HAVE a value.

When it comes to print sales, doing it online didn’t work for us either, so we adapted to a new workflow that has been less confusing for clients, more profitable for us and easier for everyone. We let our clients know ahead of time that we have in-person ordering sessions for every session – even weddings. With weddings being the exception, clients do not get their gallery until they come in for their in-person ordering session. At their in-person ordering session, that is the only time they can receive a discounted price on prints and canvases. We don’t believe in putting an expiration date on galleries, but that works for some people. The key is finding what works best for YOU and YOUR clients.

To sum it up …

Don’t be scared to be a BUSINESS. Photography is a wonderful art and I love that it allows us to be creative and capture priceless moments and memories … But we are running a business first and foremost. The key to success is clear and consistent education for your clients. Include a FAQ section on your website, a “what to expect” page, and include all of the education in a welcome packet (either digital or in print) that you send your clients, and include a section about it in your contract (we recommend Rachel Brenke’s Contracts).

Good luck!

xoxo,
Ashley

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