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Why packages?

  • Thread starter Thread starter Cathy
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I would generally agree with your statement #2. It's doubtful I would ever agree with your statement #1.

There is no way I can agree with your statement to allow my customers to buy one image and then copy to their hearts content for "personal use." One would go bankrupt very quickly if they do so. I'd like to see all of my competitors do as you say so that they quickly leave the business or live a life of poverty. If one of my customers wants another 8x10 copy, they can pay me for it or receive it as a bonus for buying some other package item, but I'm not just going to allow them to have it for free. No offense, but your logic of giving stuff away for free (copies) and not getting anything in return is lost on me.
dannv said:
the issue isn't that you make 10x more than "Ed" and are willing to
forego the 1x customers. it is that, over time and for a given set
of parameters, all customers are moving from 10x to 1x. if
photographers don't either 1) start accomodating them or 2) come up
with creative new parameters (i.e. package features), then you will
lose all your customers to "Ed".

if your argument is you would rather continue to focus on new
packages/features than begin selling 1-offs, i would generally
support you.

as for the texturizing example, copyright includes "fair use" which
includes copies for personal use. its a reasonably representative
example of how technology is obsoleting some features of today's
packages. in this example: as soon as "everybody" has a scanner,
this feature will become less valuable and must be dropped, else it
will become a detractor from the value of the package -- and the
image itself....dav
Click to expand...
 
If you offer 3 packages your average buying pack will be the middle price. If you offer 5 packages the average buying pack will be the middle one. You just raised your average buying pack by offering 5 packages rather than 3. The lowest pack you offer should have the most markup on just to cover the bases.

Just a thought !

Works for me.

JHF
 
And, once in a while someone will actually buy the highest priced package! :)
John Fulton said:
If you offer 3 packages your average buying pack will be the middle
price. If you offer 5 packages the average buying pack will be the
middle one. You just raised your average buying pack by offering 5
packages rather than 3. The lowest pack you offer should have the
most markup on just to cover the bases.

Just a thought !

Works for me.

JHF
Click to expand...
 
Hi Marc,

I'm in the process of starting a wedding photo business (in Ontario) and am currently looking at other avenues to pursue during the week. I've seen a lot of US photographers doing highschool senior portraits but barely any in Canada. I was under the impression that the market for this type of work wasn't very big in Canada compared to the US. I was surprised to hear that 50% of your business is generated in this sector. From the looks of things, these aren't the "sit...shoot...next" types of shots normally done in the school gymnasiums. It's the customized personal portrait sessions that I'm most insterested in - which also affords the ability to do location shooting which I prefer.

I'd be interested to hear your thoughts on the Senior market in your area and in Ontario (if you're familiar with it). I'm wondering if it would be worth investing in a marketing campaign for this type of work in my area. Either there's a market for this with little competition (since I never see anyone advertising for it), or there just isn't a market for it. Any idea of where I might look to find out what this market is like in Ontario?

Thanks,

Michael

P.S. You might want to check the titles on your Summerside web pages. They all say "Welcome to Adboe Golive 5" (and this will be the label if the page is bookmarked).
digiman30 said:
Cathy said:
If we charge a creation fee, then why do we have to offer packages?
I'm trying to simplify pricing. I find that it's a pain in the a$%
to try and make sure that my packages make sense compared to
alacarte pricing. Also when offering online ordering, it's
difficult to make up packages (I use a breezebrowser template).
I'm sure that there must be a reason that photogs have done it this
way for so long, but I can't figure out why. Wouldn't it be easier
and just as profitable to charge all orders alacarte prices?
Click to expand...
Cathy,
We operate a medium to high end portrait studio in Canada for the
last 60 years....no I'm not 90, I'm 3rd generation! I won't get
into dollars and cents but I'll say we are successfull. I think
both package systems and a'la carte systems work, its all in how
you present them and sell them to your client. We do about 50%
senior graduation work which is all packages but our portrait work
is all a'la carte with projection sales. We shifted our portrait
sales to gear it towards large wall portraits 30 and 40 inch images
and found projection and a la cart worked much better than
packages. We quadtrupled our portrait sales in 1 year by switching
and it has been growing every year since. So the trick is to
figure out what your goals are and impliment the best solution.
Good luck.
Marc MacArthur
http://www.heckbertstudio.com
Click to expand...
--
Equipment list in my profile
http://www.morpheusmultimedia.com/gallery
 
Hi Michael,

Your correct in assuming the market is very different in the US. The senior portrait there is a casual lifestyle portrait where here in Can it is a traditional school gown H&S portrait. I would like to say the trend is switching but it is very slow. I have heard alot of reasons and ideas on why things are so different and even heard a study one Photog did about border towns. US side, casual portraits, Can side it wouldn't work. What we offer is a higher quality H&S portrait with sculptured lighting and complimentry posing to give the grads a much nicer product(in our view) and guess what if you market yourself as a quality Photographer and can back it up with good work. There is a market. It is a tough market with the likes of Jostens, Sears, Walmart, Lifetouch and about a hundred others out there bidding for it but it is lucrative once you have a foot hold. We have also been adding casual portraits into the mix the last few years and it is catching on and growing, so I do see it slowly changing towards the US market. Another great contact would be a photographer in Lethbridge Alberta named Pat Dejordin. Can't remember his web site. If your not already a member of PPOC or the local Ont. PPOC constituant association I would strongly reccomend you look into joining. It is a vast knowledge of other pro's ready to help with anything. Check it out. http://www.ppoc.ca or the ontario branch is http://www.professionalphotographersofontario.com

You can do a search on the PPOC site for Pat's website, he does casual grad work and does it very successfully.
Good luck!
Marc
Mickey said:
I'm in the process of starting a wedding photo business (in
Ontario) and am currently looking at other avenues to pursue during
the week. I've seen a lot of US photographers doing highschool
senior portraits but barely any in Canada. I was under the
impression that the market for this type of work wasn't very big in
Canada compared to the US. I was surprised to hear that 50% of
your business is generated in this sector. From the looks of
things, these aren't the "sit...shoot...next" types of shots
normally done in the school gymnasiums. It's the customized
personal portrait sessions that I'm most insterested in - which
also affords the ability to do location shooting which I prefer.

I'd be interested to hear your thoughts on the Senior market in
your area and in Ontario (if you're familiar with it). I'm
wondering if it would be worth investing in a marketing campaign
for this type of work in my area. Either there's a market for this
with little competition (since I never see anyone advertising for
it), or there just isn't a market for it. Any idea of where I
might look to find out what this market is like in Ontario?

Thanks,

Michael

P.S. You might want to check the titles on your Summerside web
pages. They all say "Welcome to Adboe Golive 5" (and this will be
the label if the page is bookmarked).
digiman30 said:
Cathy said:
If we charge a creation fee, then why do we have to offer packages?
I'm trying to simplify pricing. I find that it's a pain in the a$%
to try and make sure that my packages make sense compared to
alacarte pricing. Also when offering online ordering, it's
difficult to make up packages (I use a breezebrowser template).
I'm sure that there must be a reason that photogs have done it this
way for so long, but I can't figure out why. Wouldn't it be easier
and just as profitable to charge all orders alacarte prices?
Click to expand...
Cathy,
We operate a medium to high end portrait studio in Canada for the
last 60 years....no I'm not 90, I'm 3rd generation! I won't get
into dollars and cents but I'll say we are successfull. I think
both package systems and a'la carte systems work, its all in how
you present them and sell them to your client. We do about 50%
senior graduation work which is all packages but our portrait work
is all a'la carte with projection sales. We shifted our portrait
sales to gear it towards large wall portraits 30 and 40 inch images
and found projection and a la cart worked much better than
packages. We quadtrupled our portrait sales in 1 year by switching
and it has been growing every year since. So the trick is to
figure out what your goals are and impliment the best solution.
Good luck.
Marc MacArthur
http://www.heckbertstudio.com
Click to expand...
--
Equipment list in my profile
http://www.morpheusmultimedia.com/gallery
Click to expand...
 
Cathy,

Another angle with packages is that they simplify choices. This is true for complex or heteregenous selections of images. This is the same with MacDonald's packages/menu selection. In wedding packages for example, it is tedious and confusing for the customer if you have to recalculate orders or options. Providing packages simplifies this selection. They can pick an option and go from there.

Aside from the discounts that you give with packages, with bulk orders it gets confusing figuring out re-prints based on some rates especially if they are mixed or of various sizes. 7 8x10's, 3 8x12's, 34 5x7's, etc. You package it with the most probable order nos and anything above that you charge the normal rate. There is an illusion of savings to the client (they actually do save, but what you lose in per image profit, you gain in volume or more prints).

I used to have a simple pricing structure for my weddings based on a per pritn basis. But I found out my customers think in terms of no of photos/prints as a set, and the price of it. They get confused if they want less or more prints and have to calculate based on a certain no (they usually want to know how much for 100 prints). So, I offered a 6-7 price structure and upped the ante to 150 prints minimum so that they see more prints for the same or near the price structure I belive they will bite. But I had to put the per pic/print rates near the end of my price packages as extra prints after the 150 prints. The 6-7 options they choose from also makes it clear how many extra prints they get as they climb the ladder and how much they are "saving' if they go choose the more expensive packages. They will see this great disparity as the Per print price if they calculate it will cost more for the same count (not to mention they get no album, no cd-rom copy, etc).

Also, sometimes, it pushes the customer to spend more if it is packaged, which ordinarily they won't. If you sell a print for U$25 each, and 3 x 25 = U$75, but offer the 3 pic package for U$60 you lose U$15 for those 3 pics. Now if your cost per print is U$5 (example only), you earn a U$20 per print. The package gives you U$45 profit for 3 prints vs U$60 if you sell it your standard rate. The trouble with the standard rate is it does not push the customer to buy. So, which would you have a a profit of U$20 on a single sale, or a discounted sale but a profit of U$45?

Both systems have their advantage and disadvantage. As a business person you must determine which marketing and price structure your market can bear or which will yield better results.
Cathy said:
If we charge a creation fee, then why do we have to offer packages?
I'm trying to simplify pricing. I find that it's a pain in the a$%
to try and make sure that my packages make sense compared to
alacarte pricing. Also when offering online ordering, it's
difficult to make up packages (I use a breezebrowser template).
I'm sure that there must be a reason that photogs have done it this
way for so long, but I can't figure out why. Wouldn't it be easier
and just as profitable to charge all orders alacarte prices?
Click to expand...
--
---------------------
  • Caterpillar
'Always in the process of changing, growing, and transforming.'
 
Thank you so much for your help. I've just requested an application form for the PPO and I guess I need to find myself a sponsor. Sounds like a great resource and I hope I can get in. :)

I found Pat's site: http://www.dejourdans.com/ I'm heading out for a shoot now, so I'll take a look at it later (the few thumbnails I saw looked very creative though)!

I think if the grads are presented the option of Jostens vs creative location or studio portraits, I'm sure they'd choose the latter. We just have to make sure it's enticing enough to justify the price difference. :)

Michael
digiman30 said:
Hi Michael,
Your correct in assuming the market is very different in the US.
The senior portrait there is a casual lifestyle portrait where here
in Can it is a traditional school gown H&S portrait. I would like
to say the trend is switching but it is very slow. I have heard
alot of reasons and ideas on why things are so different and even
heard a study one Photog did about border towns. US side, casual
portraits, Can side it wouldn't work. What we offer is a higher
quality H&S portrait with sculptured lighting and complimentry
posing to give the grads a much nicer product(in our view) and
guess what if you market yourself as a quality Photographer and can
back it up with good work. There is a market. It is a tough market
with the likes of Jostens, Sears, Walmart, Lifetouch and about a
hundred others out there bidding for it but it is lucrative once
you have a foot hold. We have also been adding casual portraits
into the mix the last few years and it is catching on and growing,
so I do see it slowly changing towards the US market. Another great
contact would be a photographer in Lethbridge Alberta named Pat
Dejordin. Can't remember his web site. If your not already a member
of PPOC or the local Ont. PPOC constituant association I would
strongly reccomend you look into joining. It is a vast knowledge of
other pro's ready to help with anything. Check it out. http://www.ppoc.ca
or the ontario branch is http://www.professionalphotographersofontario.com
You can do a search on the PPOC site for Pat's website, he does
casual grad work and does it very successfully.
Good luck!
Marc
Click to expand...
--
Equipment list in my profile
http://www.morpheusmultimedia.com/gallery
 
I never understood why some photographers charge very little for the session and then overprice the prints. I have a very different approach to this; I charge more for the creation of the image, that's why people hire me in the first place and then give them the possibility to order as many prints as they need for a fair price. That way people can order only a few prints without spending much more or a lot of prints, if they need, at a fair rate.

What I want to be paid for, is my talent and skill, without depending on quantities.
This is how I price my portrait sessions:

Basic session: $ 750 for 4 images ( this includes the session and the creation of 4 images including 4 8 x 10 prints)
Additional images are priced $ 150 each (always including a 8x 10 print)

This covers my expenses and gives the client a certain choice of images. They can then order reprints at a reasonable fee:

4 x 6: $8
5 x 7: $12
8 x 10: $20
11 x 14: $45

I also offer other package options for customers that want a larger choice of images:

Extended package: Session + 8 images $ 1000

Additional images: $ 125

Reprints are as above

Family Package: Session + 12 images $ 1250

Additional images: 100

Full session package: Session + 20 images + High rez files on CD $ 1700

Some people get the full package plus a lot of reprints for friends and family some stick with the basic 4 images and maybe a couple of reprints.

This way I always get paid enough for my skills without having to worry about how many prints they will order.

I never had anybody complaining about my pricing structure so this is how I have been doing for several years now.

Roland
Cathy said:
If we charge a creation fee, then why do we have to offer packages?
I'm trying to simplify pricing. I find that it's a pain in the a$%
to try and make sure that my packages make sense compared to
alacarte pricing. Also when offering online ordering, it's
difficult to make up packages (I use a breezebrowser template).
I'm sure that there must be a reason that photogs have done it this
way for so long, but I can't figure out why. Wouldn't it be easier
and just as profitable to charge all orders alacarte prices?
Click to expand...
--
http://www.rolandscarpa.com
 
So basically you sell packages.

If you charge $750 for the session fee and 4 prints (of 4 poses), that's the definition of a package.

The bottom line is you do what makes you the most money in a given marketplace.

To answer your question: many photographers charge a nominal session fee in order to shoot the images. You can't sell what hasn't been shot. The more images I can present to a client, the more images I can sell. $750 for a session fee and four 8x10's will scare many potential clients away. I'd rather charge a $200 session fee and then let them decide to buy my $550 package of four 8x10's. Works out the same as your plan, but their initial investment is only $200. Also, when it comes time to buy prints, they'll have forgotten about the $200 and will see my package as costing only $550 while yours will always be $750 in their minds.

There is no one "right" answer... it all depends on the marketplace of your own town. Sounds like your pricing structure works for you and shouldn't be changed... if it aint broke, don't fix it.
RolandSC said:
RolandSC wrote:
I never understood why some photographers charge very little for
the session and then overprice the prints. I have a very different
approach to this; I charge more for the creation of the image,
that's why people hire me in the first place and then give them the
possibility to order as many prints as they need for a fair price.
That way people can order only a few prints without spending much
more or a lot of prints, if they need, at a fair rate.
What I want to be paid for, is my talent and skill, without
depending on quantities.
This is how I price my portrait sessions:

Basic session: $ 750 for 4 images ( this includes the session and
the creation of 4 images including 4 8 x 10 prints)
Additional images are priced $ 150 each (always including a 8x 10
print)

This covers my expenses and gives the client a certain choice of
images. They can then order reprints at a reasonable fee:

4 x 6: $8
5 x 7: $12
8 x 10: $20
11 x 14: $45

I also offer other package options for customers that want a larger
choice of images:

Extended package: Session + 8 images $ 1000

Additional images: $ 125

Reprints are as above

Family Package: Session + 12 images $ 1250

Additional images: 100

Full session package: Session + 20 images + High rez files on CD $
1700

Some people get the full package plus a lot of reprints for friends
and family some stick with the basic 4 images and maybe a couple of
reprints.

This way I always get paid enough for my skills without having to
worry about how many prints they will order.
I never had anybody complaining about my pricing structure so this
is how I have been doing for several years now.

Roland
Click to expand...
 
Same thing here. My services are a bit high. Well not too high but high enough to raise some eyebrows. But my prints are lower than the others. As you said, I make sure up front I get paid for my skill. And I make sure that the re-prints are affordable, much lower than the competition. It is noticeable to many that I get many reprints. What I lose in per print profit, I gain in volume. Besides, the up front rate already got me covered. Anything above that is gravy. And in a way, it also introduces other potential clients to my work since they can afford it. It is sort of an indiret advertising by having lower print cost. I got 46 8x10 orders on a very high price. I gave a discount. This morning I found out that the people in the pictures will pay for the cost. Now they will have a copy of my work and will probably spur more sales if they like it. This is possible because my per print cost are much lower than the competition.

The packages option also simplifies the selection process for me, and highlights the "savings" they can have if they opt for it. Packages makes it easier for clients to decide. There is no need to get a calculator and do the math. They can see exact tiers and gives an illusion of savings (well they do save, but in effect it isn't really by that much and usually I got that lower pricing covered).

Now, if they do not want my price structure, but I feel that this is a good business deal and will earn a good sum, if I am free and have the time to spare, I sometimes say, I will do the shoot at no cost, but will charge them above standard rates on a per print basis.

I do this if I am not doing too much or if the shoot is unique and is an opportunity in itself. I once shot a CS (caesariaon section) operation at no cost, but with this condition. I didn't lose money on this with the reprints.

Shoots like this is not for everyone. I am a semi-pro so I can do this. but I also look at it as an advertising effort on my part. With my higher service charge, buy doing it for "free" but upping the per print price, most people will have no qualms with the no charge-just-to-shoot offer. Once I have those wonderful shots (of a baby being born), they are hooked. Hard to resist that once-in-a-lifeitme moment. But then again, I can't charge them low.

So, it introduces me to new clients at no entry cost to them, it acts as an advertising expense (even if nothing pans out), and finally, if the shoot is new or unique, I get to buttress my portfolio.

Packages have their part, and having lower print costs for me works quite well. Psychologically, the client soon gets over your high service fee. In the end, with reprints, he/she feels she is getting a better deal than the competition because he/she knows your prints are 20-40% cheaper per image compared to the competition. This last impression is important and usually gives a better chance of repeat orders if not a new contract. In the end, sustainability and repeat sales are important to me.
--
---------------------
  • Caterpillar
'Always in the process of changing, growing, and transforming.'
 
Hi people.

Just like to say thanks to all, it was an interesting thread to read - for I am lost with pricing myself & this helpd the confusion.
Im on the right track! woohoo.

I agree with John, I use a package system & clients ALWAYS go for the middle package, unless they are convinced otherwise. I might try adding some more options and see how it goes.. Cheers

I also go for the higher rate to start (Although this is in the form of packages) and lower reprints, Im not worried if it scares some clients away, they are probably not the clientele I am wanting in the first place.
I specialise and find most people who ring book with me.

I don't understand how anyone can risk doing a shoot for $40.00AUS and the client walks away with a 5x7" for $60.00 = $100.00 spent altogether. Or worse still, they take the freebie that got them in the door and run - I am amazed at how many people are not scared of appearing rude by doing this. (Which is how the other photographic company I work for operates.) Wheres the profit, it's just not worth the time unless your photographing 15+ groups a day, which is far from my turnover.

I will also add, it's not cheating people by expecting them to respect your image's copyright.

I guess like everything were all different and different methods work for different companies.
My point again was thanks, I love this site!
I will take it all in and twist it my way.
 
Roland
If you don’t mind telling us this information,

what media/process do you deliver as final output, ink jet or silver paper Lambda,Iris,Giclee,LightJet…?
Love your work thanks for sharing.

Kraig
 
Cazzarita,

An update. I just closed a wedding deal last night. The package the daugther chose for her parents is my next to the lowest in my tiers. My margin will be lower at this tier, but then again, this is where the re-prints will make up for it. This is where my standard re-print prices will help offset the lower cost of the package. And even if they don't pour, the package cost already has covered my expenses and has given me moderate profits.

I accepted this wedding because this will be a Golden Wedding Anniversary wedding! How many do you know get to be married for 50 years and get married again to renew their vows? Look at the impact of this on a photographer's portfolio!

I am confident that the 100 5x7 and 3 8x10's of the low end package will spur the re-prints. In my experience 100 prints is not enough especially if the images are very good. But the family believes more in spending for food (about 125 guests) than photos, hence their desire for a "cheaper" package. If all goes well and I shoot as well as I shoot in the past, I expect that the reprints will be at least 50% of the package cost! This is what happened to me the last time on a mid-tier package. This is one time where my up-front service is a tad low. But this is where the re-prints will make up for that (hopefully).

I wish I could post the results of this soon, but the wedding is scheduled mid-June, so that's still a long way off. My concern now is to do a good job. Because the re-prints will come if you take good photos. This is one reason why one must study one's packages and pricing structure. Use the market and customer perception to create your packages so that whatever they choose, you are ahead. The only question that you need to answer is by how much, and whether the structure is sustainable and will spur future sales.

---------------------
  • Caterpillar
'Always in the process of changing, growing, and transforming.'
 
RolandSC said:
http://www.rolandscarpa.com
Click to expand...
First...Very nice Website....like the interiors....Great balance...also like how you group the interiors together almost like a pano...but ofcourse...not...

But...in your profile....for your website....you forgot the "." between the 3w's and rolandacarpa...Just to let you know....FWIW...HIH...

--
Regards....Matt K
' Why isn't Phonetic spelled the way it sounds ???? '

'You only get one sunrise and one sunset a day and you only get so many days on the planet. A good photographer does the math and doesn't waste either.'....Galen Rowell
 
I've been busy learning my new camera and haven't been on for awhile, so sorry for not replying until now.

This has been a great learning experience and I'm sure there are a lot of lurkers reading this thread.

1. I've changed my alacarte pricing to be higher and my packages progressively cheaper per tier. I'm geared toward the senior market right now.
2. I'm leaving portrait sessions as alacarte for now

3. I agree with having higher creation fees and lower reorder prices, but this doesn't happen around here with seniors and I have to be competitive. Right now I have very low session fees. I plan on gradually raising them throughout the year.

4. For weddings I have started with a moderate-high coverage/creation fee with lower costs (still a profit) for different album options and reprints. (I give them 20% off my regular alacarte pricies for reprints).

I'm sure that this will all have to be reevaluated next year, but I think I'm better set to make a decent living this year. I hope :)
Matt K said:
Matt K134792 said:
http://www.rolandscarpa.com
Click to expand...
First...Very nice Website....like the interiors....Great
balance...also like how you group the interiors together almost
like a pano...but ofcourse...not...
But...in your profile....for your website....you forgot the "."
between the 3w's and rolandacarpa...Just to let you
know....FWIW...HIH...

--
Regards....Matt K
' Why isn't Phonetic spelled the way it sounds ???? '

'You only get one sunrise and one sunset a day and you only get so
many days on the planet. A good photographer does the math and
doesn't waste either.'....Galen Rowell
Click to expand...
 
Cathy,

Having higher up front fees and lower print cost or vice-versa is not set in stone. You have to look into your market. There is also a middle ground somewhere you can probably find yourself in.

In our country, portraiture is a lost market. Very, very few go to studio's anymore for portraiture. Actually, that is half the truth, many do go for one. But not for the same reason. Mostly it is for job applications, immigration photos, etc. Very few for the purpose of displaying the output in their homes. So, portraitures here has become more like going to macdonald's picking a choice on the menu, getting it, eating it and leaving. It has become more like making an ID picture. It hardly lasts 5 min and you are done. Very few even bother to dress up or have themselves made up.

Packages have their place. It is a marketing tool. So is having an a la carte pricing. What is important is one must be aware of these options and apply them if need be. In my case, my wedding packages are 2-3x higher than the others here. But I am 50-70% lower than the top guys. And my justification for my price is that I am using high end digital SLRs. I have the extra task of "educating" my prospective customers. They really do not see the difference. Thank goodness that the medium is visual, so just showing them some prints, has most of them convinced.

Once you get over that, the other problem is no longer if your price structure is justified. Your superior pictures has already converted them as to why you charge so much. The next problem is how to solve the problem of budget -- their budget. They are usually not prepared for 2x the price structure. They didn't know about digital. And even if they do, they know it is darn expensive. Here comes more education (I do the math for them to show that it's not really 2x as they think). I also offer an installment plan (yes, just like insurance or mortgages!). We agree on a package and I do the shoot. But I release the pictures based on payments. When they see the first batch of pictures, I have no doubt they will scamper to raise the money to get the rest. This installment plan my seem odd to you, but the price of photographic services here is really shockingly low compared to the USA or Europe that we have to find ways to close deals and make it easy for clients to get our services without going down price ourselves.

In my case, packages help soften the blow. The per capita income in our country is not high. We cannot charge U$2,000-4,000 for weddings. U$1,000 is even for the high end and well known guys. A typical low end film based wedding here costs U$100!!!! If I were to compete on price alone, I would be struggling. Packages allow me to break it down my services into more palatable and cheweable segments. Couple that with extra prints as incentives, installment payments, no risk guarantees, good salesmanship, then I manage to corner and create a following of my own. I also help change, re-shape the wedding price structure in our country, which is right now in the middle of a transition.

My marketing/business model is also premised on the fact that the photos themselves are very good in the first place. They are as good as the top/well known paid guys. This does not just help close sales, but the client gets the impression that they are paying half as much for the quality of the top guns. And if I think the shoot is worth it (e.g a caesarian operation, 50th wedding anniversary, etc), I even offer to shoot at no risk to the client, meaning, I just shoot. IF they don't like my shots, they don't pay. They don't have to buy anything. I still have to lose money on this proposition.

I can do these things because I am confident of my skills and I have tested the waters. I know what sells. I know my images are above the standard shots others do. And I know digital has given me an edge over film that I take advantage of. Marketing strategy just helps leverage these advantages. Marketing helps break the barrier of low cost of my competitors.

At the heart of your success, it's still going to be your skill. Without this, any business model will find it hard sailing.

---------------------
  • Caterpillar
'Always in the process of changing, growing, and transforming.'
 
It sounds like the photo business really tough over there. Where I live people will spend obscene amounts of money on their children (most people will say they don't agree with this but do it anyway). They all think that their kids are the cutest and would love to spend money on a portrait to prove it. How much money is determined by the local market and trying to find out what others in the area are charging is not an easy task. Photographers are very competitive.

The best tool I have for selling portraits is to have the client come back in to review proofs. Before they arrive, I have printed out an 8x10 of one photo and have it displayed in a frame. I haven't been in business long but I have never failed to sell prints of that 8x10.
caterpillar said:
Cathy,

Having higher up front fees and lower print cost or vice-versa is
not set in stone. You have to look into your market. There is also
a middle ground somewhere you can probably find yourself in.

In our country, portraiture is a lost market. Very, very few go to
studio's anymore for portraiture. Actually, that is half the truth,
many do go for one. But not for the same reason. Mostly it is for
job applications, immigration photos, etc. Very few for the purpose
of displaying the output in their homes. So, portraitures here has
become more like going to macdonald's picking a choice on the menu,
getting it, eating it and leaving. It has become more like making
an ID picture. It hardly lasts 5 min and you are done. Very few
even bother to dress up or have themselves made up.

Packages have their place. It is a marketing tool. So is having an
a la carte pricing. What is important is one must be aware of these
options and apply them if need be. In my case, my wedding packages
are 2-3x higher than the others here. But I am 50-70% lower than
the top guys. And my justification for my price is that I am using
high end digital SLRs. I have the extra task of "educating" my
prospective customers. They really do not see the difference. Thank
goodness that the medium is visual, so just showing them some
prints, has most of them convinced.

Once you get over that, the other problem is no longer if your
price structure is justified. Your superior pictures has already
converted them as to why you charge so much. The next problem is
how to solve the problem of budget -- their budget. They are
usually not prepared for 2x the price structure. They didn't know
about digital. And even if they do, they know it is darn expensive.
Here comes more education (I do the math for them to show that it's
not really 2x as they think). I also offer an installment plan
(yes, just like insurance or mortgages!). We agree on a package
and I do the shoot. But I release the pictures based on payments.
When they see the first batch of pictures, I have no doubt they
will scamper to raise the money to get the rest. This installment
plan my seem odd to you, but the price of photographic services
here is really shockingly low compared to the USA or Europe that we
have to find ways to close deals and make it easy for clients to
get our services without going down price ourselves.

In my case, packages help soften the blow. The per capita income in
our country is not high. We cannot charge U$2,000-4,000 for
weddings. U$1,000 is even for the high end and well known guys. A
typical low end film based wedding here costs U$100!!!! If I were
to compete on price alone, I would be struggling. Packages allow me
to break it down my services into more palatable and cheweable
segments. Couple that with extra prints as incentives, installment
payments, no risk guarantees, good salesmanship, then I manage to
corner and create a following of my own. I also help change,
re-shape the wedding price structure in our country, which is right
now in the middle of a transition.

My marketing/business model is also premised on the fact that the
photos themselves are very good in the first place. They are as
good as the top/well known paid guys. This does not just help close
sales, but the client gets the impression that they are paying half
as much for the quality of the top guns. And if I think the shoot
is worth it (e.g a caesarian operation, 50th wedding anniversary,
etc), I even offer to shoot at no risk to the client, meaning, I
just shoot. IF they don't like my shots, they don't pay. They don't
have to buy anything. I still have to lose money on this
proposition.

I can do these things because I am confident of my skills and I
have tested the waters. I know what sells. I know my images are
above the standard shots others do. And I know digital has given me
an edge over film that I take advantage of. Marketing strategy just
helps leverage these advantages. Marketing helps break the barrier
of low cost of my competitors.

At the heart of your success, it's still going to be your skill.
Without this, any business model will find it hard sailing.

---------------------
  • Caterpillar
'Always in the process of changing, growing, and transforming.'
Click to expand...
 
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