Pricing: A family group of 13? 7 adults and 6 kids.

[cvalene]

Good news:

I got a chance to discuss with her in full of the prices and she agreed once she realized the rental fee. Good lordy.

Homework tonight:
Tax business
Lighting techniques
Geometry

[Flea77]

Originally Posted by cvalene

So, with the tax id... i can file to be tax exempt and start charging sales tax on tangible items correct?

The sticking point is "tangible items". That can get you in a world of trouble. From what I have read (and I do NOT claim to be an expert), tangible is anything and everything, a digital file, rights, time, labor, prints, etc. Pretty much everything and anything is taxable. I just gave up trying to understand it all and charge sales tax on absolutely everything. At least that way the state will never come after me (they do not seem to care if you overcharge taxes as long as you turn it all in to them, where they nail you is not charging taxes on something you should have, or failing to turn it over to them).

That is my two cents worth and with the devaluation of the dollar it is more like half a cent worth.

Allan

[cvalene]

Alan, from what I've heard (seems like everything is hear-say from multiple sources), sessions don't get taxed unless the client gets a file or anything at that session? It's so confusing to me. So much to learn. Charging sales tax on everything sounds very safe though, good idea.

Thank you
Cherese

[camera shy]

Until you can get the state to specifically tell you if YOUR services are taxable I suggest you just charge tax on EVERYTHING. The customer expects to pay tax and 99% won't question it.
Don't go by what some others may say (including me) because everyones situation is different and as you have discovered, the state isn't always in the 'know' either. If someone feels you have overcharged them sales tax they should take it up with the state, who will refund it if justified. NO repurcussions to you as long as you've sent the state every penny of tax you have collected.

[WarrenG]

Originally Posted by cvalene

May I ask why you don't offer 8x10 and under unless a certain amount is met? I've seen other photographers do this as well.

Again, thank you so much. I know that was a lot of information for you to type up. It definitely helped me understand.

Well, let me clarify that I always offer something similiar to those sizes (6x9, 8x12, etc) I just do not display them when we go through the proofing session.

It is worth mentioning that you cannot conduct this type of selling with an online gallery. You need to be in front of the client, and ideally utilizing projected proofing of some sort. At the end of the day, I do not display the smaller prints because I want to control what and how the client buys. If I show the small prints, the client will be less apt to want to buy the large prints... that is just human nature. What makes me money? Small prints, or large? Which does the client perceive to be a better value to them? The 4x6 at $6.00 may seem like a lot of money when they are used to buying them at $0.39 each, and no matter how much selling you do, it is harder to justify the value in that 4x6. Conversely, they have more than likely never ordered a 16 x24.... so that seems big, and seems like it should cost more, right?

To pull this sales method off (for me anyway) I have to use the projected proofing along with some framed samples. I show the client how nice the image would look vs. a teeny 8x10, and why they need it (I wont go into the specific sales pitch though). I will also add that I do all of the framing so typically all the client has to do is pick their frame. That's it... there is no stress, or the hassle of driving around to multiple shops, etc. I provide a finished image, framed, with a dust cover and hanging hardware.... they have to do nothing, but hang it on the wall. Even in the instances where the image is not framed, you need to do things that set your images apart. The biggest trick to this game is "Perceived Value". If the client see's a 4x6 then they think this is the best images size for them (affordable, etc). You want to show them that it is in fact not even an option for what they are doing. With the special you have going on right now the biggest bang for the buck is your "X.Y. or Z"

Get your ducks in row on the business end, and good luck with future sales.

Cheers,

W

[Ernst-Ulrich Schafer]

Always consider all your costs when doing business. Don't just think because your getting a sitting fee of $240 your making that as a profit.

[cvalene]

Thank you all for your extremely helpful information.

Always consider all your costs when doing business. Don't just think because your getting a sitting fee of $240 your making that as a profit.

I've taken a gander at NPPA's cost of doing business calculator. Pretty helpful, although I don't have most of those expenses to cover just yet but it's not far away.
NPPA: Cost of Doing Business Calculator

I always have to remind myself of my CODB, thank you.

[cvalene]

Details: Creative Fee | American Society of Media Photographers
Also helpful.

[Flea77]

Originally Posted by cvalene

Alan, from what I've heard (seems like everything is hear-say from multiple sources), sessions don't get taxed unless the client gets a file or anything at that session? It's so confusing to me. So much to learn. Charging sales tax on everything sounds very safe though, good idea.

Thank you
Cherese

I think you may be right about not charging tax if all they do is pay you to sit in front of your camera and never get a print, a digital file, or any rights. Of course one has to ask why they would pay you for nothing. Once you then sold them anything else, the session fee that created the image would then be taxable.

Weird things like this are why I charge tax on everything and let the government sort it out. I can not imagine anyone paying me to take their picture if they never get anything out of it, so since I assume they will buy something, it is ALL taxable. Problem solved.

Allan

[cvalene]

I think you may be right about not charging tax if all they do is pay you to sit in front of your camera and never get a print, a digital file, or any rights. Of course one has to ask why they would pay you for nothing. Once you then sold them anything else, the session fee that created the image would then be taxable.

Weird things like this are why I charge tax on everything and let the government sort it out. I can not imagine anyone paying me to take their picture if they never get anything out of it, so since I assume they will buy something, it is ALL taxable. Problem solved.

Allan

Sorry about misspelling your name, Allan. It seems that you are doing the right thing by taxing everything, better than owing it later. Thanks for the great advice and possibly keeping me out of trouble. I'll do that for all upcoming shoots. :)

Cherese

[reader0428]

Here's what I do. They pay the flat session fee up front to book their session. I don't add tax to that invoice. But on their final bill, with all their purchases, I add the tax to everthing. So their final invoice looks like this:

Session fee: $150
Portrait Total (for products purchased): $1,000
Shipping: $25 (yes shipping is taxable)
Subtotal: $1,175
Sales Tax: $96.94
Grand Total: $1,271.94
Less session fee paid: ($150)
Balance Due: $1,121.93

That way they are still paying the sales tax on everything but they can write a nice even check for the session fee to book their date.

[cvalene]

That way they are still paying the sales tax on everything but they can write a nice even check for the session fee to book their date.

That sounds like something I would like to do.
Thanks Amanda:)