value

Negotiating From The Get-Go

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You might think that negotiating is about the buyer and selling haggling over price. But it’s much more than that.

Earlier today, I went shopping for a new suit. At a clothing store, the salesperson didn’t ask what kind of suit I wanted. Instead she asked at what type of events would I be wearing the suit. [Help the customer get what they need and don’t just sell to them.]

Instead of letting me choose suits from the long racks of clothing, the salesperson selected just two suits for me. [Make it easy for the customer to decide and avoid overwhelming them.]

“I think you’d look great in either of these two. Which do you prefer?” she asked.
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Don’t Discount Yourself

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[Added December 2016: the company mentioned in this post seems to have gone out of business.]

A newspaper article in The Province reports on a new Vancouver-based company offering customers the chance to book last-minute photo sessions at discounted prices. The idea is simple: photographers are, in theory, willing to offer discounts to fill empty slots in their schedules, and the company acts as a middleman, connecting customers with these last-minute deals.

At first glance, this might seem like a win-win situation. The customer gets a discount, and the photographer fills an empty slot. However, a closer examination suggests that the real winner here might be the company itself. (For fun, check out who’s behind this business.)

While last-minute discounts might work for amateur photographers, part-time photographers with day jobs, and those who practice dump-and-run photography (more on this later), it’s a poor strategy for professionals. In fact, it’s similar to why discount platforms like Groupon can be bad for photographers.
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Use You Clues

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When a customer is searching for a photographer, they don’t just look for pretty pictures on a web site and the lowest price. Instead, they’re looking for clues that a particular photographer is worth hiring at whatever price they might charge. The customer is looking for value which is quite different from low price.

Every professional photographer pretty much uses the same camera equipment, same computer and same software. Most photographers can, more or less, shoot the same pictures although this can vary by a huge margin. So how do you increase your value to the customer?

You have to offer something that customers can’t get from any other photographer. And what can’t they get from any other photographer?
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Are you just a price tag?

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While shopping for a pair of winter shoes recently, the ones that I liked most ranged from $99 to $199. All of these shoes looked good and all were comfortable. Which one to choose?

Most of these shoes had only a simple price tag attached. But one pair had a twelve-page booklet attached which described how the shoes were made. These were the shoes I bought (for $179).

When a customer asks something like, “What’s your price to do four business headshots?”, this is a good indication that the customer is shopping price. This is not the time for a photographer to act like a price tag. Instead the photographer should be a booklet of information.
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Being Too Expensive Is Really An Opportunity

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A customer may directly or indirectly tell a photographer that their price is too high. When this happens, the photographer has to understand why the customer is saying this.

A customer may say the photographer’s price is too high when, in reality, the customer is undecided or confused about the offer. It’s easier to say, “it’s too expensive” than “I’m not sure how I can benefit from this photography.”
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When is the price of photography expensive?

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“Aren’t your photography prices too high?”

Compared to an amateur photographer, a Craigslist photographer, or an inexperienced photographer then I certainly hope that my prices are much higher than any of those.

But I’m not expensive when compared to a photographer with similar experience and knowledge.

I quoted $1,560 for a job last month that required eight business headshots. A few days later, someone from the company called to let me know that their project was cancelled. She said that she had received quotes from four Toronto photographers, including myself, and all were within $300 of each other. Unfortunately, she continued, “My boss budgeted only $500. I told him it wasn’t enough!”
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Marginally Cheaper By The Dozen

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You can tell that it’s getting close to year’s end as companies rush to get work done or hurry to spend any remaining budget. I’ve received nine inquiries for business portraits in the past two weeks, and each job had to be delivered and invoiced before December 31. The requests ranged from two to thirty business headshots.

One potential customer asked why I don’t offer a bigger volume discount for multiple business portraits. They wondered why the cost to shoot 30 business headshots didn’t drop to under $50 each.

Here’s why:
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