How do you explain value to a client?

[Debbi]

Or do you? I've never been asked so I'm not sure how to respond. We have designed an 8x8 album for a client and while she likes it, she said she is not seeing the cost value. Our albums are custom designed, as we do not use templates so that each album is unique. We also use a pro lab for the album; it is not a press book. Our albums are not cheap but there are far from the most expensive I have seen.

BTW, our client is pretty well-to-do and after seeing her home, she doesn't strike me as a bargain shopper. I originally offered to meet with her to show her some samples, and still could.

How do you justify your prices when asked? I don't think the answer is a breakdown of design flow, hours designing, lab costs, blah, blah, blah.

Thanks!

[Tom]

I don't.

I have a press book that I show to clients that I print from Millers. I've used it on parent books before and now guest books.

The value difference from a press book and a forbeyon album is pretty apparent when you hold them next to each other. But some people don't care that much. Some people want even nicer.

[texkam]

I always like the wedding cake analogy. Many people have no problem paying big bucks for a wedding cake. You're just buying a little flour, butter sugar etc. ..... and a lot of creativity and expertise.

[bondarnes]

Originally Posted by texkam

I always like the wedding cake analogy. Many people have no problem paying big bucks for a wedding cake. You're just buying a little flour, butter sugar etc. ..... and a lot of creativity and expertise.

That's good, but an even better analogy would be a wedding dress. Wedding dresses range from a couple hundred bucks to $$$$, but a custom made dress will be in the thousands.

[Debbi]

Thanks guys. These are great. I knew what the answer wasn't but wasn't sure what the answer was since I've never been asked before.

[CaptainTom]

Originally Posted by Debbi

Thanks guys. These are great. I knew what the answer wasn't but wasn't sure what the answer was since I've never been asked before.

Good point. A lot of the time we know what NOT to say, but don't know exactly what TO SAY to make the sale. Most of the time the product will speak for itself, but it's harder when you don't have a sample in hand.
Maybe we need to print an album at Wal-Mart and see what their quality is like.
Show the two products side by side and see which one the client wants.
If they pick the Wal mart album........sell it to them for a grand and run before they figure it out !!!!!

[Debbi]

Actually, I do have an album printed long ago by Shutterfly. It's just awful. It could certainly make the point for us. I will offer again to show her some samples before ordering her album. She's stated several times that she wants one but wasn't sure what made it worth $XXX.

[STP Images]

Originally Posted by Debbi

Our albums are custom designed, as we do not use templates so that each album is unique. We also use a pro lab for the album; it is not a press book.

You partially answered your own question right there. Elaborate a little on the time you take to process the images, perfecting each one prior to inclusion in the album. Also include the amount of time you spend making each album perfect, regardless of the materials used by the album manufacturer. Your time is a KEY component to your rates. If a plumber comes to your home and spends two days working on your problem, you get billed for every minute logged - your prices should be similarly calculated to account for your processing time.

Originally Posted by Debbi

BTW, our client is pretty well-to-do and after seeing her home, she doesn't strike me as a bargain shopper.

Don't believe that financially secure people won't be tight with funds. After all, to accumulate wealth, a person must KEEP more money than they spend. One of my 'tightest' clients works in a highly paid and highly skilled medical capacity, yet each sale to this client is quite a struggle.

[ggeen]

I will give you the reason that I use a professional photographer when I want professional results.

The client is not paying for a picture. That cost $0.29 at the drug store. What the client is paying for is the artistic or creative talent of the photographer.

Also, I like the wedding cake and dress analogies.

[tukaniray]

Same here on the wedding cake and dress analogies ...

I'm gonna start using that as well ... nice. Thanks Mark and Don.

-Ray-

[S-Man]

You also have to keep in mind that the number of images in an album are way more than you may offer in a print package or whatever. If you were to get that number of loose prints, it may be just as expensive, or maybe a little less, but won't have the nice binding, elegant cover and fantastic storybook layout, all collected neatly in a book.

[CaptainTom]

The production line at the widget plant came to a grinding halt.
Dozens of workers were standing around on the clock with no way to
get the widgets made.
The manager had to call an outside contractor to get there immediately and fix
the assembly line. He was losing thousands per hour in lost product.

The contractor came to the assembly line, looked it over, and inserted a screwdriver into one of the components. He tightened the screw, and the assembly line roared back into operation.

The manager was highly impressed.

When the consultants bill arrived, it simply said "services rendered" $3,000.

The manager called the consultant and said " That's a lot of money,, I'm going to need an itemized billing, and you were only here for 15 minutes!!"

Subsequent invoice:

Emergency Travel $100
On site evaluation $100

tightening of screw $2

Knowing which essential screw to tighten $2,798

Total due $3,000

[Debbi]

Don't believe that financially secure people won't be tight with funds. After all, to accumulate wealth, a person must KEEP more money than they spend. One of my 'tightest' clients works in a highly paid and highly skilled medical capacity, yet each sale to this client is quite a struggle.[/QUOTE]

I totally agree, Todd. It was more background info than info with real "substance".


LOL, Tom! This is your client too but you said that you don't "do" albums.

I do agree that knowledge or "expertise" and your time dictates your prices more than your costs do but it all comes across as whining if you try to explain that to a lay person.

[Debbi]

Originally Posted by S-Man

You also have to keep in mind that the number of images in an album are way more than you may offer in a print package or whatever. If you were to get that number of loose prints, it may be just as expensive, or maybe a little less, but won't have the nice binding, elegant cover and fantastic storybook layout, all collected neatly in a book.

Oooh! I like that. If I were to do a cost comparison of say 8x10 prints versus the album, she is waaay better off and with a great presentation.

[ronocnikral]

Originally Posted by Debbi

Don't believe that financially secure people won't be tight with funds. After all, to accumulate wealth, a person must KEEP more money than they spend.

as the wise harvard man thought by the famous pond:

A man is rich in proportion to the number of things he can afford to let alone.