billybob40

I get a lot of info by email if I think it will help one person it makes my day worth it. Pass it on!

Hi Billybob,

So, I have been receiving a lot of questions and doubts on "Pricing Strategies".

There have been a broad range of questions from 'How do I decide on setting my base pricing?' to 'How often should I increase my pricing level and how do I inform my clients about it?' and so on. As I told you before I had been busy working on compiling answers for a lot of such FAQ's. My voracious reading ability helped me come across this very interesting concept of 'The Power Pricing Self Test'. I am confident that giving this test would be one of those kick-starting moments in your photography career.


Before we get too much farther, I want to clear the cobwebs out of your brain. We are going to start with the Part 1 of The Power Pricing Self Test and see where you are with your understanding of pricing strategy. This will take only about five minutes, so grab a notepad and a pen, sit down in your favorite easy chair, and jot down some ideas as we go along. Here we go:

You should consider brainstorming about your current price list (or, as some prefer to call it, your investment sheet). What do you feel about it? Is it overpriced/under priced? Are you missing some basic cost elements while fixing your pricing per client or package? Things such as post processing cost, prints in a particular size, extra copies of certain shots, any contingency expense incurred during the shoot, etc

You must know your costs on each of your products & services. Also, chart out the percentages or break-up of your total spend. This will give you an excellent overview of the areas where your expenses are heavy that can be controlled and also the sections which really need some money which isn't being utilized. Another good way to chart this out using an excel template. Create segments for your expenses such as Equipments & Gear, Advertising>> within advertising you can further create sub-segments such as flyers, web designing, print banners or posters, etc, Post Processing, Client Meetings or Appointments and so on. Per segment you just got to fill the figures for each contract

Consider the factors when making your decision on pricing. I am sure you would have a different thought process when you plan to offer à la carte pricing against packages or bundles. Make an attempt to list those factors

Study your mark-up factor or how did you decide what to charge for each of your products and services. Competitor research would be of great help here. Your peers would be of great guidance too since you're sailing in the same boat with them

The next very important element is to KNOW how much does it cost you per month, per day, and even per hour to keep the doors open at your studio, regardless of whether or not you have any business coming through those doors. It's a good business move to update your pricing at regular intervals to cover the additional expense of operating a business. It's palpable that you need to define
those intervals, could be once a year or twice in a year or once every two years &
the percentage increase in pricing you conduct every period, could vary from as small as 0.5% to 10-15%
Keep a tab of the change in pricing that you make every time to help you study the pricing graph better



I guess this is enough food for thought for the day. Wait for Part 2 of the Pricing Test tomorrow.

....till then keep well,
Nick Smith

DigitalWeddingSecrets.com

5715 Will Clayton #7363,
Humble, TX 77338,
USA