pricing

Pricing commercial photography

From time to time, potential customers and photo students will ask, “What’s the day rate for a corporate photographer in Toronto?”, “What does the average Toronto commercial photographer charge?” or “What’s the standard hourly fee for business photography?”

The answer to all of those questions is the same: no such fee exists. There is no day rate, no half-day rate and no hourly fee.

It would be like calling a restaurant to ask, “What’s the going rate for a dinner?”

Does anyone ever ask a dentist, “What’s your hourly charge?” 

Can you ask a shoe store clerk, “What’s the standard price for a pair of shoes?”

Professional photographers base their fee on how the pictures will be used, what’s involved in producing those pictures and the photographer’s talent, experience and overhead costs.

Since every job is different, there’s no one-size-fits-all price, no going rate, no standard hourly fee.

 

Show me the money

“Why are you charging me $600 more?!”

When giving a discount to a customer, it’s important for the photographer to show the normal price, the discount rate and the discounted price on the invoice rather than just showing the final discounted price. For example:

Instead of:

Photography fee:  $3,400.00

It’s better to use something like:

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Goldilocks and the three prices

The usual way for a commercial photographer to quote a job is to provide the client with a price for the requested photo assignment. But another method is to provide the potential client with a few variations of their proposed assignment along with the corresponding price for each variation.

Wedding photographers have always done this. For example, a wedding photographer might quote: $6,500 for full-day coverage plus a large album and a DVD; $3,500 for half-day coverage and one album; $1,500 for two hours coverage and an album of small prints.
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Model behaviour

A Toronto model agency includes these terms for booking any of its talent:

• Models don’t work for free.

• Minimum one hour booking and the time is rounded up to the next full hour. Model gets paid for the full time booked and not necessarily the actual time for the shoot.

• Model gets paid for travel time and preparation time.

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Lower the bridge or raise the water?

Having to lower your price is the penalty you pay for not having raised your value.

If a photographer can’t sell value then they may have no choice but to sell (low) price. Choosing to lower prices is a business strategy that will follow that business for a long time. For example, WalMart will always be associated with “cheap” and everyone knows cheap isn’t any good because good isn’t cheap.

Remember that value is in the eye of the client. Extra prints or fancy leather albums may have value to retail customers (e.g. weddings and family portraits) but they won’t have any value to commercial or corporate clients.

Part of the job for commercial photographers and corporate photographers is to understand what their business clients need, what has value to them.

Low prices might be okay if the photographer can compensate with a continuous high sales volume. But a high sales volume means a high work volume. To support a low-price business strategy, a photographer has no choice but to work more and more.

Makes no cents.

 

One price fits no one

One problem when a photographer charges a one-size-fits-all photo fee, (i.e., an hourly fee or a day rate), is that the photographer ends up providing a variety of services to their clients all for the same price. 

For example: an editorial customer may require the photographer to use one camera to cover a one-hour press conference. A corporate customer may need the photographer to bring four cases of equipment to produce several studio-quality executive portraits within an allotted one-hour period.

Those two assignments require different equipment, different skills and different talents. So why should both clients pay the same price (i.e., the same hourly fee or day rate)?

Charging by the hour can even penalize the customer.

For example: a certain photo might take one hour to shoot or it might take four hours. Either way, the benefits to the customer are the same. Charging by the hour would mean that the customer pays more for the “slower” photographer yet gains no additional benefits.

Pricing based on photography and usage may be confusing to some customers but it allows the photographer to customize the price to suit each customer’s exact needs.

 

A Small Discount

At my favourite buffet restaurant, people under 12-years-old pay only half-price. Kids get the same quality of food and the same service but pay only half the price.

People under 12-years-old pay half-price for movie theatre admission. They sit in the same seats and watch the same movie but pay half the price.

At a hair salon, people under 12 years of age pay half-price for a haircut. They sit in the same stylist chair and get the same service but for half the price.

On Toronto public transit, people under 12 years of age pay one-quarter the price. They ride the same bus and travel to the same destination but pay a quarter of the price.

What’s going on here? Are the rest of us being over-charged?
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