How to Know What Your Photography is Worth?

One of the things I’ve noticed that new photographers struggle with most, is how to price their work.  I admit when we opened our studio (back in the dark ages when we chiseled pictures onto stone tablets) we checked what the other three studios in town were charging. Then we priced ourselves just a little less than them.  Not the greatest pricing strategy but at least we didn’t go broke and over time we learned the correct way to figure out what to charge.

Now days we couldn’t use that method. Last time I counted there were about 40 in a city of less than 25,000. If I were to price myself a “little lower” than my colleagues… well let’s just say there isn’t much room to go lower. 

Just last week a fairly new photographer in town advertised on social media, a session and 50 (yes, you read that right) files for $150. So forgetting about a session fee, that works out to $3 per file.

  $3 a file…..You can’t buy a fast food hamburger for $3. Or a six pack of soda, or a movie ticket, or a greeting card,  a cup of coffee at Starbucks.  So basically, this photographer is telling all potential clients that their work is worth less than all those things, those temporary, disposable, consumable things. Something that the client probably won’t even remember tomorrow.  Apparently ,they don’t think they are worth much.  And if they don’t value what they do, how can they expect the client will?

The price you place on your work does as much to create public opinion as the clothes you wear to a session.  Or the packaging for delivering your portraits. Or the front door to your studio. Do you show up at a session in dirty jeans and a ratty t-shirt? Do you deliver portraits in the plastic bag they came from the lab?  Is your front door dirty and chipping paint? 

So why do inexperienced photographers charge so little.  I have two theories. First, it’s the only way they know how to compete.  But think about it. Do you really want a client who comes to you because you are the cheapest? Or do you want the client who comes to you because they love what you do?  Which client do you think will be more emotionally and financially invested with you? 

My second theory is these inexperienced photographers have no idea what all goes into the price of their work.  Equipment for sure, rent, marketing, advertising, cost of goods if you are selling prints, packaging, phone, utilities, insurance (Don’t make the mistake of thinking your homeowners insurance will cover you  for your business.),  auto expenses, gas, oil, etc., dues and education assuming you want to improve your skills,  props and  backgrounds,  Photoshop and other computer programs, printing for price lists, flyers, or other promotional material, samples to show your work. I could go on…and on…and on! 

And don’t forget your time!  We figure if a session takes an hour, we will have at least two hours prepping the files. That doesn’t count the time we spent marketing to get that client, booking the session, travel if it’s not at your studio, the sales session, ordering products and packaging/framing once the prints come in and delivering the final product. 

Let’s say that’s an average of 2 more hours minimally.  We have at least 5 hours invested in that session. So, if we charged $150 that means $30 an hour,  which sounds not too shabby if you’ve been working for minimum  wage at a fast-food joint. …oh wait…that’s not right. You have to pay for all that other stuff.  So basically, you’ve done five hours of work for way less than minimum wage and told the client that’s all your time and talent is worth.  Sounds like a real successful business plan to me…NOT! 

My husband and I mentor a lot of photographers. Some of the things they’ve said to us – I just have Photoshop Elements; I can’t afford the whole program. I just have the one camera so I use my cell phone as a backup at a wedding if my real camera quits working.  And  when asked what they used for lighting groups at a wedding – I have the little pop-up flash on my camera.

I know it’s hard when you are young and just starting. Heck, we made a camera flash bracket by welding some old strap iron together from my father-in-law’s junk pile and spray painting it black. We built a hair light soft box out of foam core. BUT if you charge enough money it is faster and easier to pay for the things you need and make a living in this profession.

So now somebody is going to ask “So how should I figure out what to charge.” There are lots of methods but for me what is easiest is cost of goods times 5.5 or 6.  Then I ask myself is this an appropriate price?  If not, I adjust. Some things I consider disposables, like wallets, holiday cards or grad yard signs. Those products I’m closer to 4 times. There are dozens of formulas you can use.  Make a list of all expenses for a whole year. Then divide by the number of sessions you typically do in that same time period. That will tell you how much you need to gross per session just to cover expenses. 

I’ll leave you with this thought. When I talk about raising prices someone always says  “I can’t do that. I’ll lose half my customers.” So, think about this.  I’m using small numbers to illustrate but it doesn’t matter how many zeros there are at the end of the number, the principal is just the same.

Say your average sale was $50 and you have 10 clients a month.  You will bring in $500. Now you raise that price to $100 and you lose half your clients. 5 clients at $100 is still $500.  Let that sink in. Plus, you have more free time for your family. Less wear and tear on equipment and less cost of goods, so your profit margin is actually higher.  But mostly I want to leave you with this YOU ARE WORTH MORE.