Make the Leap from Shoot and Burn to Product Sales!

Every once in a while, people drop notes asking how to handle various situations. I received this one today from a photographer in a Facebook group. Is this a letter that you could have written?

                                                                             

Hi! I just saw a post on a Facebook photo group about charging $100 for a disk of images versus just offering prints and products I am assuming? She said that you had helped her convert... Well I am one of those photographers that offers sessions for $125 and they get to choose 10 poses for edit and receive a disk of the finished product... it works, but I am leaning more and more towards not offering digital images anymore. I guess the main thing holding be back is the fear of losing clients or not staying busy enough... I am still trying to get my name out there and grow my business and I wish I was busier the way it is... I feel like if I didn't offer a disk then I would slow way down as most of my clients come to me because they want a photographer that offers this. Do you have any words of expertise for me?! I would love to hear what you have to say. Thanks for your time.

- Scared to Switch

                                                                              

Dear Scared -

Thanks for your note and being brave enough to reach out. It's really difficult to make the leap, but the biggest obstacle is how WE think, not how our clients think.

Will you lose some clients by switching to a product-based model? Of course. There are people out there who want cheap. If you raise your prices and still give them the files, odds are they would leave you anyway in search of another $125 photographer. We simply have to get over the fact that these are our "starter clients".

With properly priced product, you WILL make more money. It's a fact. There are a number of photographers in the group who worked a shoot-and-burn model initially, then realized they were putting in hours of their time and talent and not reaping the benefits, emotionally or financially. Ask them; they simply won't go back.

Your fears are identical to theirs. They worried that they would lose clients. They worried that they would slow down. And yes, those things happened.

But then, a funny thing also happened. These same photographers began getting BETTER CLIENTS. Clients who valued the product the photographer produced, not simply the low price these people were charging. Suddenly, they became a good value in a high grade of clientele.

So, the decision is yours. Do the same thing and get the same results, or take the risk to change your model - and believe in it - and start making a decent living in this business.

It's not an overnight thing. You need to plan your pricing and prepare answers for why you're not $125 any longer. You can still offer files, but they need to be priced SIGNIFICANTLY higher.

Is it scary? You're darn right it is.

What's scarier is working as hard as you do for little or nothing.

- David

The Pitfalls of Raising Your Prices.

There's lots of talk among professionals about adjusting pricing for the coming year. Most all of it revolves around "I'm too cheap and not making any money, but if I raise my prices I'm afraid I'll lose what clients I do have!"

The fact is, when you raise your prices there are some issues you will have to deal with, both good and bad:

1 - You'll lose some clients who only came to you because you were cheap. These people are not loyal supporters and are only there to catch whatever scraps you let fall off the table. Their loyalty is based solely on you giving them the greatest amount of product for the least amount of money. They also tend to complain about your low prices and tell you that you're too expensive. They will want "a deal" on any extra product they purchase.

Downside - Without these clients you won't be as busy, but you also won't have to deal with people who waste your time and aren't willing to compensate you in return.

2 - If your work is where it needs to be, you will gain new clients who respect what you charge and will appreciate what you do and the quality of your product. They will view your work as an investment, not an expense. Treat these clients well and they will be yours for a long time.

Downside - You will still have to work hard to gain their loyalty, but not nearly as hard as you worked before just to get the cheap clients to be interested.

3 - You'll actually start making money. You may be able to purchase an upgraded piece of gear or a new background. You will probably have to stop making excuses about not being able to attend educational events and conventions because there will be enough money left in the checkbook, even after you pay studio expenses and yourself. You may actually be able to book fewer sessions and make the same amount.

Downside - You will have to open a savings account and put some money away during the busy times so there will be enough to pay the additional income taxes at the end of the year.

Don't be afraid. My favorite quote is from Star Wars when Luke was trying to use The Force to raise his speeder from the muck. Yoda kept telling him "Concentrate. Use The Force." Luke said "I'm trying!"

Yoda's famous reply was "There is Do and there is Do Not. There is no Try."

- David Grupa

Stop Worrying About What Others "In Your Area" are Doing!

We were having a discussion in a Facebook group and I thought I'd share this part of it for readers here.

It seems any time we talk about pricing, someone will say "well, that will never fly in my area" or "in my area, people would never pay those prices", or "in my area, everyone just wants a CD."

"In my area . . . " <sigh>

In my area, there are over 650 registered photographers (with the MN Dept of Revenue).

In my area, there are probably an equal number of students, MWACs and wannabees who own DLSRs, print business cards, have a FB business page and a website and call themselves professional. However, they pay no taxes and do it all "under the table."

In my area, these "professionals" charge anywhere from $100 / up and give a disk . . . and while it frustrates me that I have to constantly explain myself to clients, the bottom line is basic:

"I'm sorry, Ma'am . . . I am in business to make a living. This is how I feed my family, pay my bills, put my kids through college. I'm happy to sell you images on a disk; the first one is $500. The next two are $250 each. You may choose 10 for $1500. (That makes them just $150 each.)"

I'm in business to create awesome images and sell you finished photographs. It is not my mission to be cheap so that I can save someone a buck or two while they print my work at Costco.

I still need to pay my bills and cover my expenses, not to mention put something away for the future.

After spending 28 years with a business partner who almost ran us out of business because he wanted to charge based on what everyone else "in our area" charged, I knew I needed a change. Eight years ago I finally broke free of that and - scared to death - went into my own thing knowing I was going to sink or swim and the only thing standing between the two was me.


I believe that the "area" people are talking about is the space between their ears.

I've stopped caring about what others "in my area" charge. I've started looking after me. I deserve it.

You do too.

- David

Are You Disillusioned About What You Thought Would Be Your "Dream Job"?

Boys and girls . . . SERIOUSLY . . . I know raising prices is scary. I know it makes you sweat. I know you think you're already too high because your so-called "good clients" are telling you so.

THEY'RE WRONG.

Let's look at this in a different way.

What if I offered you a job where you were free to create to your heart's content?

What if I told you that in addition, you'd have final say over all of the product lines? How about the purchasing decisions? You're free to buy the gear you need to do the job. And the hours . . you can set your own!

Sounds pretty sweet, right?

Now what if I told you you'd also be the receptionist, so you'd have to answer the phones, set appointments and deal with the public?

How about the customer service? You also get to work with people who aren't going to be happy. Some are just going to be offensive and mean.

Oh, by the way . . . you're the bookkeeper as well. You get to make sure that all of the monthly bills are paid and that the checkbook gets balanced. And you're responsible for keeping the receipts and such in an orderly fashion.

And production. You're responsible for unpacking the product, assembling the final product and making sure it's perfect and correct.

Shipping department? Yup, you get that job as well.

Don't forget to vacuum and empty the wastebaskets; you're the janitor too. (And the toilet . . . keep it clean!)

Now . . . what if I told you for all of this, you'd be paid the whopping sum of . . . are you ready?

LESS THAN MINIMUM WAGE.

You'd tell me I was crazy. You'd tell me to go jump. Some of you may tell me to do something that isn't even humanly possible.

BUT . . . GUESS WHAT?

A whole bunch of you have already taken this job. Your pricing is so horrendously low, you're working for less than minimum wage.

That great job you thought would make you enough money so you could stay home with the kids or quit your full-time job that you hate isn't paying you a penny. Some of you may even be paying for the privilege of working as a photographer.

YOU NEED TO RAISE YOUR PRICES. Sit down and figure it out. After you pay taxes and take out your expenses (yes, all of them), are you really able to keep anything for yourself?

You wouldn't let a boss do this to you. Why are you ok with doing it to yourself?

- David Grupa

Where will YOU be in 5 years?

I was reading a Facebook post today in which the writer stated that people looking for low price should expect low quality product.

While we'd all like to believe that is true, less money charged does not necessarily translate to low quality. Sadly, there are some really decent shooters out there who:

- Have no confidence in their work and ability to charge appropriately
- Have no business knowledge and therefore no clue as how to charge appropriately
- Think that they're going to save the world from expensive photographers by practically giving their work away

All of them are thinking that they are running a successful photography business - either full-time or "on the side" - and with the exception of the one who's trying to save the world, truly believe that they're charging as much as they can for their work.

There are a few basic statements that can be made which apply to many people who are new in the business. No, I'm not talking about the ones who went to WalMart or Best Buy and came home with a Rebel kit and a copy of PS Elements. The photographers I am referring to are the ones who have been active for a couple of years, gotten some additional education via traveling seminars and have actually kept themselves somewhat busy. However, they refuse to set their pricing at "market value" because:

Many new photographers are way better than they think they are. 
Most new photographers are severely underpriced.
As a result, most new photographers are making far less than they probably could be making.


Is this you? If so, here are a few more startling facts:

15% of you won't be a professional photographer next year at this time.
38% of you won't be here in 3 years.
50% of you will be out of business within 5 years.

You pick. Which one do YOU want to be?

Here's a graphic from business blogger Barry Ritholtz which outlines the profile of a US Small Business. How closely do you fit?

 

Don't You Love Craigslist?

Yesterday morning, a colleague messaged me regarding a Craigslist ad in which the writer railed professional photographers for being ridiculously expensive and making "ridiculous amounts of money." 

I took the opportunity to respond to her and educate her on why professional photographers charge what we do.

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Attn: Wedding Photographers :) (Puget Sound)

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Date: 2012-01-17, 8:57AM PST
Reply to: serv-zwumx-2804332414@craigslist.org ^{[Errors when replying to ads?]}

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WHY is finding an amazing wedding photographer so difficult? :/

I am a Bride who is getting married this summer and have yet to find a decently priced, exceptional, amazingly talented, fun photographer.

WHY because the word "WEDDING" is involved photographers think they can change you $ 3,000.00 for wedding photos? Oh, because no bride is going to go without so they are going to pay it, because they HAVE to. They are ripping people off for all they have! Why when you want to get married it costs you AT LEAST 15 grand after all is said-and-done? Its such CRAP!! I love all you $ 3,000.00 photographers out there but i think your prices are WACK. All your doing is hanging out at a wedding taking tons of photos and editing them.. and thats owrth 3 GRAND!!! You're making so much money its crazy. I just wish people would be more realistic. I mean the "average" persons salary for 1 freaking month is somewhere around 3 grand. (Thats making 19$ an hour) So you're going to take someones WHOLE MONTH paycheck for one flippen day of photos? Just because you CAN!!?????? So that maybe they will not be able to feed themselves or pay any other bills they have, right? It makes me SICK!

I know im speaking for more than just myself right now. Alot of brides out there think the same thing. & I bet all you fancy photographers wont even read this. oh-well.
Maybe there are cheaper photographers that will read this and LOVE to take my photos :)

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Dear "Pissed Off in Puget Sound",

A colleague shared your Craigslist ad with me a bit earlier today. I wish I could say that "hanging out at a wedding and taking tons of photos" is "easy money" as you seem to think, but it's really not. While I agree that professional photography is not inexpensive, try working with a "weekend warrior with a camera" and see the difference. Sure, you may pay less money, but the resulting images will be of such poor quality, you'll be certain to feel "ripped off."

However, rather than tell you about award-winning photography, explain my credentials and attempt to convince you why a talented photographer is worth $3000 or more, I'm going to do some basic math instead.

First, let's talk about taxes. Don't you just hate opening up your paycheck at the end of the week and finding that Uncle Sam and friends have taken about 30% of your hard-earned dollars for federal, state and other taxes? Well, photographers have to pay them, too. That's $900 straight off the top of that $3000, leaving $2100. (You may think that 30% seems like a high number, but remember that since I'm self-employed, there's nobody else kicking in a percentage; the entire tax burden is borne by me.) Since there's no withholding, it's up to me to put this amount away so that I can make my quarterly tax payments on time.

Another huge chunk of the pie is a rather surprising expense to many people. We call it "Overhead" and "Cost of Goods Sold". In this category are visible items like albums, prints, frames and those items you take home. You don't want cheap things that will fall apart or fade, so I'm willing to pay a bit more in the search for a quality product. Remember, "good things aren't usually cheap, and cheap things aren't usually good." The photography industry is a showcase for that motto; really, ask around. (The pages of that "Snapfish" album will fade and discolor before your first anniversary.)

However, there are also other things in this group as well; things that we need to deliver our best to you, but are somewhat "invisible" to people other than business owners. They include our studio rent or monthly location payment, phone, computer, website and hosting, equipment and liability insurances (because we realize that we live in a litigious society), and local business and other licenses. Add in the membership dues to professional associations where we go for new techniques and to stay current so that we can deliver those amazing images you seek, and this Overhead category takes another 30% bite out of that $3000 so that just $1200 remains.

Then there's the equipment we use. Digital has brought some awesome advantages to photographers, but it comes at a price. New cameras and lenses are not inexpensive; we don't photograph with $500 Canon Rebels from WalMart. Since it takes a while to save enough money for this, I put away 10% of each job toward new equipment, equipment repairs, cleaning and maintenance. (Yes, I carry at least 2 working professional cameras to your wedding in the event something happens. A professional will simply pick up a new camera and continue photographing as if nothing happened. Your bargain photographer may panic or worse yet, not even realize that something is wrong. Not sounding like such a bargain anymore, is it?) Subtracting that $300 brings me down to $900.

Since I realize I won't be able to do this for the rest of my life (and I haven't found a sugar momma to support me) I'd better save something for retirement. Financial planners say that should be 10%, so there goes another $300. I'm down to $600 of the original price.

Being self-employed, I have to buy my own health insurance for me and my family. For an individual who's not getting it through their employer, this is NOT cheap. (I'm not going to use the term "WACK", but I think you get where I'm heading.) Another 10%, another $300 and I'm down to $300 "profit" from your wedding.

While I'd like to say that I take the remaining $300 and spend it on me, it's only partially true. As you do, I have responsibilities such as monthly bills, gas for the car, car payment, food, clothing . . . the kind of stuff you were mentioning.

Let's say I spend 6 hours at your wedding, another 8 hours editing your images, not to mention the meetings we've had that last an hour each. When you come back to select the images for your album, we'll spend another 2 hours going through choices and then I'll invest another 4 hours (minimum) designing the perfect album for you, prepping it for printing and sending it to the manufacturer. When it comes back, I'll inspect it and make sure it's perfect, then spend another 45 mins going through it with you when you pick it up. Almost a full 24 hours . . . divided by the $300 I got to keep . . . and I've just made $12.50 an hour. (Which totally blows the "You're making so much money it's crazy" theory.)

On a side note, over the past 36 years I have been photographing weddings, I can't even begin to count the number of ball games and other events I've missed. My kids got used to it; "You know that Daddy works on Saturday", but over the years it took its toll on my relationships as well. I refuse to make those mistakes again; those who refuse to learn from the past are destined to repeat it.

I'm sure you're probably tired of reading, but I hope you understand what I'm saying. Producing a quality product at a fair price IS what professional photographers do; it's always your choice to work with us or someone else. The problem is, what will you give up when you "get what you paid for?"

Respectfully,

David L. Grupa

Certified Professional Photographer

M.Photog.Cr., AFS-MNPPA

Resolve to Be a Better Businessperson in 2012!

First off, I hope everyone enjoyed a wonderful holiday with the people they love the most. After all, that is really what it's all about.

Florida photographer Kevin Newsome has posted a series of YouTube videos with his opinions on different issues within the industry. They're relevant, thought-provoking and mildly entertaining. When a link to one of his videos on "Shoot and Burn" photographers was recently posted in another forum in which I participate, it opened the ever-popular discussion of "should I sell print or files?" While I don't want to get into that one one more time, I do think there were a few important points to be made.

One relatively young and opinionated member chose to point out that selling image files was the only way to make money and that Mr. Newsome was a "relic" and and "artifact" in the industry. This group member continued by stating "This dude is just afraid of losing his rip off of a business that needs to die and I'll be happy to be one of the ones to help make that happen."

Is he right? The fact is, we should all be concerned about losing our businesses, but not because we are "rip offs" or aren't embracing technology and selling files. We should be concerned about the fact that we are underpricing our products and services in an effort to compete with the MWACS and DWACS who enter this field daily. (Just think, there are probably hundreds of new "professional" photographers right now who are still trying to decide what to name their Facebook business page as they caress the shiny new Rebel they found under the tree!)

While I definitely have my own opinion, I'm not going to fuel the files vs prints debate here. What I am going to do is ask you to take a serious look at the amount of profit your studio needs in order to survive.

Photographer and educator Charles Lewis (another "relic" or "artifact") still talks about starting his studio and the number of hats one must wear to own their own photography business. He'd say "all I want to do is take pictures!" Of course, we'd all love that.

However, it takes more than just pushing a button. Those photographers who fail to do the sales, marketing and most importantly, pay attention to the numbers and bookkeeping are doomed to fail. You MUST find a way to make a viable living in this industry by pricing your product (whether image files or physical images) to make a profit.

Those who shoot and burn for cheap rates will be forced to find another source of income to supplement their photography. Those who sell prints for cheap prices will die for the same reason. 

It's not about the technology. It's not image files vs prints. It's not "relics vs young guns". It's each and every one of us vs ourselves and our own reluctance and hesitation to sell our products and services at professional rates that allow us to make a decent living while still doing something we enjoy.

Everything old is not necessarily bad, just as everything new is not necessarily better. Some things got to be old because they stood the test of time and have not crumbled under the pressure of change. Yet, embracing the "out with the old, in with the new" mentality can be a good thing in many ways. Perhaps the New Year is the right time to take the plunge with a new pricing structure. Maybe this New Year will be one in which you eclipse your old sales numbers. What if I told you 2012 would be your breakout year, simply by making a few positive changes in the way you look at your studio; not the photography itself, but the business of photography.

My suggestion for a great resolution for 2012 is to take a serious look at your own business model. Crunch your own numbers (or if that's not your strong suit, talk to a bookkeeper or accountant who can help decipher them with you!) We obviously love what we do and have a deep passion for the art. Make 2012 the year you get passionate about the business side of photography and start making it truly profitable!

Happy New Year!

- David Grupa

Beat the Competition By Outperforming, NOT Underpricing - Part 1

Photography is a funny industry. If you talk to someone who's been around, they may sound a bit bitter regarding the state of the profession, saying something like "digital is the worst thing that ever happened to photography. Nowadays, everyone thinks they are a photographer just because the can see an image on the back of their camera and hand over a disk of files for a few dollars. And they call themselves professional."

On the other hand, you may also run into someone who looks at life with more positive view. "Digital is the best thing to ever happen to photography! I can finally create the image I had envisioned because of the incredible tools we now have at our disposal. Better yet, I can charge more for my product because it's something that nobody else can duplicate!"

Of course, there is also the group of new photographers who are excited to create, eager to learn, thrilled to have the opportunity to make a living doing something they love . . . and desperately need someone with experience and knowledge to point them in the right direction.

When I think about it, I'm really not that different than any of today's new photographers. You see, when I began in this business back in 1976 I was a 17 year old kid with a new camera, a fistful of business cards and a dream to make my hobby my profession. I had the desire, I had raw talent (which needed serious refinement) and I had the energy and blind courage to succeed as an entrepreneur.

However, I just needed something more to get me over the hump.

While desire, energy and passion are great, those qualities alone will not be enough to make you a successful photographer or run a profitable business. You must set yourself apart from the competition. Many photographers realize this, but few actually understand what it means.

When I began photographing "professionally" (ie: when I began charging for my photos) I was working with a friend I'd met in high school. We became business partners and put ourselves through college shooting weddings. Things were going well (so we thought) and we soon rented retail space for a studio location. It was at this point that some of the worst decisions ever were made. Rather than explain them in every sordid detail, I'm going to make a list of the biggest errors (and tell you why they didn't work.)

1.      "People will choose us because our pricing will be less expensive than other studios."
In theory, this sounds great. Everyone likes to save a dollar and as is the case today, we were also in the throes of a recession at that time.

- Why it didn't work: Because we were new and inexperienced, price was not the deciding issue for many clients. While some clients were fine with "good enough", many opted to use competing studios who charged more because of the quality of their final product. Average photography at any price is still just average photography. Since we were operating on a low price-point, there wasn't enough profit to use top-shelf materials and still make money, nor was there enough funds to attain the education we desperately needed in order to do it right.

2.      "If we charge less, we can book more clients and make up the difference in volume."
This is great for stores such as Target or Wal-Mart, where they can lure you in with a low price on one item, knowing that while you're there you will most likely "stock up" on other items you regularly purchase. Clothing, food and other products all carry a significant markup that allows a retailer to sell certain specific items as a "loss leader".

- Why it didn't work: The strategy was wrong in many ways. Yes, more weddings and portrait sessions were booked because of lower prices. They turned out, however, to be clients who came in only for the low-priced items. Additional sales on these were virtually non-existent because the low price on the initial investment was what caused them to book in the first place. There was no love of our work or photography in general. Coupon-clippers (Groupon users) are not going to spend extra money and add-on sales are what was needed to make this strategy work.

3.      "Since I'm just starting out, I can't charge as much as everyone else."
This is perhaps one of the biggest mistakes made in the industry today. When you begin, the bulk of your client base comes from friends and family, all of whom expect "a deal". Others will feel that because you are a new photographer, they can pay less because you "need the business."

- Why it didn't work: By pricing yourself low from the beginning, you are essentially training your clients to believe that you will always be cheap. Rather than start with unrealistically low pricing, set your numbers where you want them (higher!) While you are "building your portfolio" you can then offer a discount from your "regular" prices, but only during the time you need that specific type of subject for sample images! For instance, during the month of October you'd like to increase volume for outdoor family portraits. Run a special offering a reduced rate on family sessions. Want more kids? Do an Easter or Spring portrait session special.

The bottom line is this: once you've photographed enough sessions of that particular subject at the discounted rate an d have the sample images you need, end the sale and go back to your regular (higher) pricing!

4.      "I can't raise my prices. All of my clients will complain or leave!"
Once you get established and realize that you actually want to start keeping more of the money, you will find that you have two choices; raise your prices or photograph more sessions. Since there are only 24 hours in a day, increasing the amount of work you take in can only be done to a certain level. You can't add hours to the day.

- Why you just need to bite the bullet and do it: Ultimately you will be forced to raise prices, either due to increased product costs and fixed expenses, the need to purchase new and updated equipment, the desire to take home more money and a long list of other necessities.

There's an old saying that goes something like "If your clients aren't complaining about your prices, you're probably too cheap." The fact is, people often determine value based on a price. If you're too low in your prices, there may be an entire group of people who never give you a second look. Many people equate "low price" with "poor quality". My former partner would say things such as "I'd never pay that much for photographs." If he didn't think his work was worth it, how would he ever be successful at the sales table?

The truth is, when we increased pricing we lost some of the low-end clients. What also happened is that we gained clients in an entirely new group. To these folks, we were now "affordable" in a higher price-point category.

Be fearless and move forward. Continue to make this industry an awesome place to make a living!

David Grupa, CPP, M.Photog.Cr., AFS-MNPPA owns David Grupa Portrait in Maplewood, MN. A true believer in the power of professional associations, he is a Past-President of both the TCPPA and MNPPA and serves PPA members in Minnesota as a Councilor. In his desire to "pay it forward" in the photographic industry, he founded Camp David Photographic Education. www.CampDavidPhoto.com

Are You the Holdup in Preventing Better Sales Averages?

It's been said that if your customers don't complain in some way about your pricing, you're probably too cheap. Many photographers - especially newer ones - are even afraid to charge "market rate" for their photography, often time giving it away at what can be perceived as a loss.

The excuses given by photographers range from ridiculous to absurd. "I want to be affordable for everyone!" "I want all of my clients to be able to own my work." "I price my work at what I'd be willing to pay." "It was a beautiful image and I really wanted them to have it."

Photographers get nervous. We're just jumpy. We go out and invest money in top quality gear and the best education and think we're ready to tackle the world. Then that first client walks through the door and balks at our pricing, so we do the only logical thing.

We panic.

At a recent event, I was having dinner with a few colleagues; one of them was newer in the industry than the rest of us. We were having a discussion about pricing and my new friend said "OMG! How do you tell people that your 8x10s are $100 each?"

My more experienced colleague answered "With a straight face."

But we're in panic mode, remember? Clients make one little statement about our product being expensive and we start discounting prices and handing things over as if they were pointing a gun at our heads. It's almost as if the total sale reaches an amount that we personally feel uncomfortable with, we start apologizing for what we charge.

STOP IT! Total up the order, slide the invoice across the table and ask how they'd like to make payment. At that point - SHUT UP! First one to talk loses. Seriously.

If you can't handle the pressure of the salesroom, you have a few options. Take a class in "need satisfaction selling." This type of sales technique has been used for years and is also referred to as "value-added selling."

One misconception of customer-oriented selling is that the sale is only about the customer. Wrong. It must be a good deal for the buyer and the seller. If it were not a good deal for the seller, why would the salesperson pursue the client? If it were not a good deal for the buyer, why would the buyer want the product?

If you still feel queasy at the thought of asking for money, go out and find someone else who can do it for you. Ask someone you've met who is working in a decent retail store if they'd be interested in working for you part-time as a salesperson. Offer them a basic wage with a handsome commission. Let them sell your work for you while you do what you love; create awesome images. It's a win-win for everyone.

- David Grupa

How Many Files Do YOU Have to Sell to Equal a Good Paycheck?

There are constantly discussions being opened in online groups in which I participate that revolved around the nagging question of pricing for actual photographs vs. "should I sell my files?"

A local colleague (who is an amazing artist!) commented "I still think it is better for the client to have US do the artwork and printing, but (purchasing files) is an option available for when someone needs the file. I had an image to be published in a book . . . because I did his (the subject's) wedding and the publisher bought usage of 1 jpg. What I charge per jpg is $450 for just 1. 3 jpgs are $1000, 10 jpgs are $2000 and 30 jpgs are priced at $3000. So, with a (minimum) order of $1500 or more the jpgs are $100 each, but only IF you are purchasing 30 of them. In this instance it would be at least a $4500 (sale)."

I'm pretty sure that there are too many photographers giving away their work because "that's how my friend does it" or "my client complained I wasn't including files".

You can certainly sell your files (although my personal preference and business model is to do the artwork and printing myself) AS LONG AS you're still making your session averages! Too many newer photographers think "Wow . . . I just made $100 shooting that portrait session and giving away a CD of printable images. All it cost me was a 50 cent disk - this is gonna be awesome!"

Do you remember the cereal commercial? "You'd have to eat TEN bowls of their cereal to equal the vitamins/fiber/whatever else that's in just ONE bowl of our cereal!" What we do is actually very similar.

Since there are only 24 hours in a day, do you really want to work 20 of them? There are just 5 days in a typical work week (bet your spouse/partner/kids are already thrilled to see you working nights and weekends). With 52 weeks in a year, you probably had paid vacation at your other job and enjoyed the benefits of that.

Suddenly, it's not so awesome if/when you figure out that you're actually making less than minimum wage. You're probably not even making enough to pay for the gear you own (not to mention the "wish list" of toys you want to buy!) The goal here is to make a living while creating awesome images for our clients. They, in turn, will compensate us appropriately for the portrait and lasting enjoyment they will receive!

My artistic colleague has the right approach and mindset. This is not about selling 80 square inches of photographic paper or a digital file, it's about the time and talent we put into the creation of each portrait. It's about the image, the emotion, the art.

This isn't about giving family, friends or frugal clients a cheap way out. It's about taking positive steps to insure we can make a living doing something we love.

While a great deal of my time is invested in this industry, photography is NOT my life. Photography is what I do so I can actually HAVE a life!

Take a look at what you are doing. What do you need to change to have a great life?

- David Grupa

Don't Fall Victim To a Photography Scam!

It happens more often than we care to admit. There's virtually nothing you can do about it once it happens. Odds are high that you've already been targeted.

I'm talking about scams in the photography industry and in order to not be tricked, you need to understand how you can become an unsuspecting target.

Here's the ploy:
You are contacted, usually via email, by someone posing as the groom or a friend of the couple. They are "making wedding arrangements and found your website and are inquiring about pricing, etc." Once you contact them with your info, they will send a check to reserve the date.

Here's the problem:
In almost all cases, the check is for an amount considerably larger than your required retainer. You are then contacted again via email by the party, asking you to wire the overage to another vendor. Often it's a florist or other service provider, strangely far from your area. You deposit the check, wire the money (immediately, because it's urgent!) only to find out later that the check is fraudulent. You're now out all the money you wired (usually to a foreign address) plus the bank fees for the bad check!

A few years back I had nearly been duped by one of these myself, fortunately realizing what was happening before it was too late. All of the communication listed vendors they would be working with in my area and while I was aware of this type of scam, the individual in the email was well-educated on the industry and the local venues. It seemed completely legit. Then came the email asking me to wire money to their "florist" who just happened to be in Canada. Fortunately, the email came prior to me receiving the check. When the check arrived, I called the issuing bank to validate the account and was told that no such account existed. The check was fake.

Whew! Expensive bullet - dodged!

Here's how to avoid getting scammed:

1. Don't deal exclusively through email. Make sure to get other contact information such as addresses and phone numbers.
2. Make sure any payments actually clear before you issue any refunds.
3. Never, ever forward a payment to another vendor.
4. If it seems fishy, check it out. Call the bank to verify the check is good.
5. Any time it seems like easy money or a deal too good to pass up . . . check it out first!

The folks at PhotoShelter recently made a list of other scams targeting photographers. Check it out here:

http://blog.photoshelter.com/2011/02/4-scams-that-target-photographers.html

Hoping this saves you from an expensive mistake,

- David Grupa

To Sell The Files or Not To Sell The Files . . .

There are always loads of questions centering around "should I sell my digital files?" My answer is always the same; "I have no problem including files as long as I am still meeting the amount I need from each client. With senior portraits, the number is set based on number of files purchased after a qualifying order; with weddings, that number is higher (since the average wedding sale is considerable higher.)

However, we all know of those who are selling (or worse, giving) the files for little or no compensation at all! I can not even begin to think that I am making a profit (or even a reasonable living) if I am photographing a session for $100-$150 or a wedding for $750-$1000 and simply turning over a disk of printable images and a print license. I'm just leaving far too much money on the table that the same client is now going to spend with SOMEONE ELSE.

My business model is based on providing top-quality finished products to a client. I want to sell portraits, albums and frames at a price-point that allows me to make a living without spending the rest of my natural life in front of a computer. If you have a family or spouse (and want to stay married), my suggestion is that this is the way to go.

A number of years ago there was a team call "Power Consulting". Jerrold Deck and Sondra Ayers spoke on the important of "Market Positioning". You could position yourself as one of the following three types of merchants:

• Price
• Service
• Quality

As a Price-based vendor, you would be focusing on selling your product for a low price. Of course, you'll have to do a lot of volume to make any money, but you will definitely be busy!

As a Service business, you are focused on providing a great experience for your client. You take your time and overwhelm them with great service during and after the session.

As a Quality merchant, you feature only the best products. Print are mounted, lacquered, textured and delivered in quality packaging materials (not the plastic baggie the lab sent them back in).

You can even choose to position yourself as any two of these, as long as neither is price. (As a Price merchant, you won't have time to give good service and you won't have the profits to give top quality.)

Ultimately, you may choose whatever business model works best for you, as long as you are able to make a reasonable living doing it that way.

This past summer I actually had a client call me after her son's HS senior portrait session to tell me that "we are a very technologically advanced family and don't have photographs in our home. We prefer to put in a disk and watch them on our big screen tv. Our son doesn't need wallets; he just wants to share the images on Facebook."

She wanted only the digital files and no physical photographs. Is it a monetary decision? Initially, I didn't think so. Both of their children attend high-priced private schools and they drive some fairly high-end automobiles. They live in one of the high-end suburbs . . . surely this could not be about being cheap.

Since I don't sell (or give) digital files as a part of my business model, I quoted her a dollar amount for the files she wanted that was comparable my order average for a HS senior boy. It was then that she looked at me as if I was an alien. "That's ridiculous. I mean, I'd be willing to pay you the same amount as you charge for a 5x7 . . . "

So, I asked her how big the TV is on which she'll be viewing the images. "Oh, it's a 52" Sony, top-of-the-line. They'll look just like big wall pictures on that." My quote to her was in the same ballpark as I charge for a 20" or 24" portrait, yet she's only "willing to pay me for a 5x7."

We've done it to ourselves. Photographers (professional and otherwise) all over have set the bar so horrifically low that clients expect "all photographers" will follow suit. In the case of this woman, she left without placing an order. (I did receive a small print order from her via email a week or so later . . . but very minimal.)

Set the expectation with your clients from the beginning. We are trained artists and photographers. We are not mass-producing widgets for a nickel each, we are creating one-of-a-kind images and working with our clients on a personal level.

Is it okay to let a client walk? As painful as it is, the answer is Y-E-S. Not everyone is our target client; we need to identify that from the initial consultation. We have to allow them to aspire to own our work. Anything else devalues our own work and talents, as well as affects the profession as a whole.

Don't be afraid to say no . . . and always attach a price to the ability to say yes.

Remember, photography is not our life. Photography is what we do in our attempt to create a good life.

- David

A Camp David Minute; PPA's Studio Management Services Get You On Track!

We are already over a month into 2011; during the past 4 weeks many of the conversations I've had with photographers revolve around getting their business started on the right foot. Marketing, pricing, selecting a business model and setting up the accounting and bookkeeping systems for a business are things from which many photographers shy away. Being the creative type, we don't always gravitate toward the numbers and often end up running the business based on the current balance in the checkbook.

One of the great things about being a member of the Professional Photographers of America (PPA) is that your membership dollars are hard at work for YOU, the member photographer! Taking advantage of the Studio Management Services (SMS) program will put you in touch with the right people who will be able to guide you through the steps to operating a successful and profitable studio.

New Hampshire photographer Jeff Dachowski is a mentor for the SMS program and we chatted briefly during Imaging USA.

To learn more about PPA's Studio Management Services, visit the website.

www.PPA.com/studio-management-services

Coming this January - Business by the Numbers

Kirsten Holscher, one of the Camp David instructors, will be hosting a seminar in January called "Business by the Numbers". Having known Kirsten for a number of years and watching her progress in the industry, I can attest first-hand that she will get you on the right track with this seminar. Kirsten is extremely organized and goal-oriented; it's no accident that her business is successful.

So many photographers just "wing it" when it comes to pricing and set their prices based on things like:
- emotion (you can't drop prices on a whim just to make a sale!)
- what you would be willing to pay (most of us can't afford ourselves)
- what the photographer across the street charges (how do you know if that person is making enough money - or charging based on what YOU charge?)
- what our family and friends are willing to pay (they're the ones who always expect a deal!)

Forget about what new lenses you want or what new toys you think you should buy; what we truly need to invest money in is ourselves! Education is never a bad thing . . . click the link below to be directed to her website, then make it your resolution for 2011 to run your business properly!

www.FirstThingsFirstCoach.com

 - David Grupa