Another long post intended for photographers new to the business. For those who hire photographers, this will also outline the minimum of what to expect when doing business with a professional photographer.
This article offers some suggestions on how to properly prepare a photo estimate or quote for a client. Estimates aren’t usually used for editorial work for newspapers and magazines but should be used for almost all other clients.
Do yourself a favour and always have a paper trail right from the start. It can save you if you do or haunt you if you don’t. The “you” refers both to the photographer and the client.
Photographers: never give an estimate or price over the phone.
Clients: don’t think a verbal estimate or price is final because it isn’t.
In case you missed it, here it is again: do yourself a favour and always have a paper trail right from the start. It can save you if you do or haunt you if you don’t. The “you” refers both to the photographer and the client.
If (when) an impatient client calls or e-mails to ask “how much for … we’re in a rush … just give us a ballpark number … “, tell them that time is needed to produce a fair and accurate estimate which you’ll send them. Some estimates might take 15 minutes while others could take a few days depending on the complexity of the proposed photo assignment.
Rushing or panicking to give a price off the top of one’s head will always come back to haunt the photographer in many ways: wrong price, wrong expenses, wrong usage rights, wrong business terms or wrong assignment details.
A photographer needs time to mentally walk through every detail of the job and to plan for everything that’s needed and for anything that might go wrong. This benefits both the photographer and client. Everything has to be budgeted for ahead of time because once a price is quoted, it can be difficult to get more money later, should the need arise.
Back in the year 2000, two other photographers and I each bid on the same project. I tried to work out all the details for, what I planned to be, 18 days of work. I also knew what the same job paid in previous years: $24,000 to $52,000. I bid $25,000 for a scaled-down version of the project.
The second photographer bid $12,000 because he planned to shoot the job over three or four weekends so it wouldn’t interfere with his day job.
The third photographer bid $3,000 because she wanted the work.
As you might guess, the $3,000 photographer got the job. After several days into the job, the photographer went begging for more money because she realized her $3,000 was much too low. How professional was that? (I don’t know if she got more money from the client).
It turned out that the project took much longer than she planned: 21 days. If you do the math, $3,000 over 21 days is $143/day and that included expenses!
After the project was completed, the client never worked with that photographer again. I know this for a fact because the following year, the same client asked me to quote on the new edition of their project. At that time, the client told me of all the bad things that happened with the previous photographer. (I again bid $25,000 for the project and again lost the job. :-) )
Before an estimate can be sent, the photographer must know exactly what the client wants and expects. Several phone calls, e-mails and maybe even some meetings might be necessary. Both the client and photographer should not only be on the same page but also on the same sentence. This will benefit both parties.
The photographer needs to ask the client many questions, such as:
• The who, what, where and when of the assignment.
• What type of lighting or look is expected? (eg. studio lighting, hotshoe or ambient). Is there available electricity and space for studio lights, if necessary?
• Is a special background needed for portraits?
• Do business portraits have to match any existing pictures with respect to background and lighting?
• For people pictures, should the photographer get names and titles?
• Does the event have a dress code?
• If the job is outdoors and the weather is bad, what’s Plan B?
• What about access, credentials and permits?
• How much post-processing is expected?
• Who will approve and hire the models and stylists (if applicable)?
• When does the client need the finished photographs?
• Are the photos to be delivered on disc, as prints or something else?
• How and where will the photos be used and for how long?
Depending on the assignment, there could be many other questions that need to be answered. There’s no such thing as too much information. A photographer is not (usually) a mindreader and can’t be expected to see into the client’s head and know what they’re thinking. Ask.
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In addition to the above questions, a smart photographer may even ask something more philosophical. Ask the client why they really need the pictures they’re asking for. What do they want the photographs to do for their business. What benefits do they want to gain?
For example: a public relations agency might ask for a head-and-shoulders portrait of a book author. The average photographer will do that picture as requested. But the “philosophical photographer” will learn that the PR agency wants to promote the author’s gardening book. This smart photographer might then suggest that a picture of the author working in a garden would be a more effective promotional tool. Of course, the really smart photographer will still do a head-and-shoulders, just in case.
By helping the client get the pictures they really need rather than just shooting what they ask for, the photographer increases their value to the client.
More value to the client = more money and/or repeat business for the photographer.
Another reason to talk with the client about their photo needs is the opportunity to up-sell.
For example: a corporate communications director asks for “just a headshot” of their CEO for a media handout. The smart photographer might point out the value of also shooting some pictures of the CEO with employees, with products, in front of the office building or on the factory floor. Headshots usually run small whereas environmental photos often get published larger. Plus, a better selection of images allows for wider media usage.
Larger assignment = more value for the client = more money for the photographer.
The smart photographer might also point out the benefits of using the pictures for corporate web site, annual report, internal publications or trade magazines.
More usage = more value to the client = more money for the photographer.
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Once both the client’s exact needs and the assignment details are known, then the photographer can determine the price and send the estimate.
Estimates should be on letterhead or on a similar-looking estimate form created by the photographer. This document should have logo, business name and all contact information for the photographer.
The words “estimate” and “quote” can mean the same thing eventhough “estimate” sounds vague and “quote” sounds carved-in-stone. No matter which word is used, when providing an estimate or quote, state that the final costs for expenses will be invoiced in place of the estimated costs shown on the estimate or quote. This is not intended to cover the photographer for sloppy estimating. But it will help if the photographer’s own suppliers change their prices or the photo assignment changes a little bit. If a large price increase is necessary, the photographer must keep the client informed promptly and, ideally, in writing.
An organized and thought-out estimate indicates that the photographer is also organized and prepared.
• Put the client’s name and contact information on the estimate so there’s no doubt as to with whom you’re doing business. Spelling counts.
• The client may require a purchase order number or other reference number to be shown. Ask.
• Spell out exactly the who, what, where, when, and how of the proposed assignment. Make sure there’s no misunderstanding as to the details of the job. Also, detail the why of the assignment, the usage rights.
Example: A photographer just agrees to “shoot five executive portraits for $1400″. But later, the client says that the executives are in five different locations, they must be shot on five different days and two of them require full studio lighting with backgrounds. The photographer may now be obligated to do this five-day photo extravaganza at their original $1400 price since no details were specified in the estimate.
• List the fees and expenses. It’s better to provide an itemized list rather than just a grand total so the client can see where the money is going. Photo fees and expenses should be separated so no expenses ever come out of the photo fee. A photographer does not subsidize a client’s business.
If the estimate just says “$1000″, the client may think all of that goes into the photographer’s pocket. But if it were to say: $500 photography, $150 post-processing, $100 equipment rental, $150 prints, $50 courier and $50 mileage, then the client might better understand why the price is what it is.
• Put a closing date on the estimate. State that the estimate is good for, say, 30 days or whatever is appropriate. A client should not expect the same pricing a year later.
• Make it clear that the estimate is valid only for the job description and usage rights described in that estimate. If a client changes the job and/or usage, they should not expect the price to remain the same.
• The photographer’s Terms and Conditions (T&C) must be included with the estimate. It’s important to inform the client about the terms of business early in the process. The T&C of a business transaction cannot be introduced after the fact. When sending an estimate, make sure the client knows a T&C is attached.
• Try to use industry-standard terminology consistently in all estimates, invoices and T&C’s.
The estimate is always sent with a cover letter. Attach a business card and/or postcard if sending a paper estimate. For example only:
Hello Jane,
As we discussed, here is the photo estimate for coverage of the ABCD Convention in Toronto on January 25, 2010. The planned photo coverage is of the morning keynote speaker, the afternoon workshop and the evening reception. [Repeat the assignment back to the client to make sure there are no misunderstandings]
Please note that the estimate is two pages. The first page has the numbers for fees and costs. The second page has all the “fine print” which should be straightforward and easy to read. Contact me if you have any questions or concerns with this estimate.
Since I’ll have my laptop with me, all pictures made during the morning portion of the event will be ready to go by early afternoon. You can have them on your web site right away and you won’t miss your afternoon deadline for media distribution. [This extra optional paragraph is added to continue selling your benefits to the client].
Give me a call after you’ve had the chance to review this estimate. [Ask for a response]
I look forward to working with you! [Start some positive thinking]
Best regards,
Carl Camerabag
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If the client accepts the estimate and the photographer gets the job, the client should sign, date and return a copy of the estimate to the photographer. While this may not always be possible and isn’t legally mandatory, it does offer a solid piece of paperwork should the need arise. Verbal contracts are legally binding but, of course, are very tough to prove.
Wedding photographers get clients to sign contracts; home contractors get contracts signed; auto repair shops get work orders signed; most newspapers require freelancers to sign the paper’s contract. What does all this tell you?
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If an assignment will have high expenses, get a deposit or advance before the job starts. Otherwise, if things go bad, the photographer could be stuck with a large expense bill on top of not being paid. Of course, a photographer can ask for a deposit anytime they feel it’s appropriate.
Don’t be afraid to ask for an advance. Home renovators get a deposit; wedding photographers get a deposit; web designers get a deposit; hotel reservations require a deposit; even fast food joints make you pay before they prepare your food.
It’s never the photographer’s job to finance or subsidize a client’s business. A photographer is not a bank. When asking for an advance, the photographer is not begging for money or asking for a loan. Getting a deposit or even full payment in advance is a common and accepted practice used by many types of business.
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A photographer should save all estimates whether they got the job or not. The photographer must have a record of what they promised the client. Keeping all past estimates will provide the photographer with a reference source for future estimates for both new and repeat clients.
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Sometimes, a client might talk about a competitive estimate (or bid) or a comparative estimate (or bid). In general, when a client asks for a competitive estimate, they’re looking for a photographer with the lowest price. Some government ministries and organizations are required to always go with the lowest estimate. If a client asks for a comparative estimate, they’re looking for the photographer with the best service for price (and not necessarily the lowest price).
Most often, a client just asks for an estimate or quote and then decides however they wish to decide. Lowest price doesn’t always get the job. A smart client knows that lowest price doesn’t always mean the best value for their business.
Tags: estimates, negotiating, pricing
