Charging for prints

[d2creative]

Once you know YOUR cost to have a print made at the requested size, how do you know how much to charge above that?

And do you typically have a print mounted for your client, or do you let them take care of that themselves when they take it to their framer?

Thanks!

[picasso]

I mount anything 16x20 and above. Only you can know the cost to charge for prints. It largely depends on your overhead and profit you need to make. I charge $45 dollars for an 8x10 others charge twice that or lots less. Its hard to give a pat answer. Figure out what you need to make over and above cost of goods, this includes insurance, retirement etc... etc... also think about how may hours you want to work. This will tell you how much you need to make per hour and help you get to a number for pricing your work. This probably complicates your question but not enough people think about these things and that's why you have photographers doing weddings for $200 dollars and selling prints for $5.

Paul

[kenw]

Your prices should be determined by the market price for equivalent work in your area. Underprice to get a bit of business going at first, but eventually you should move to within the "accepted" market range. Folks in high demand can charge above the market rate. Low demand folks can't charge as much.

It's demand that determines your price, costs determine your profits.

Consider: the price of all things in the world is determined by how much people will pay for it, not by how much it costs. Otherwise, a bottle of water would cost us 2 cents, and a Lexus might be $500 more than a Toyota. But folks will pay $1 for a bottle of water, and $10,000 more for a Lexus, so there's the price....

class dismissed.

[picasso]

Ken,

I might be inclined to agree with you if the market price weren't all over the map. A better strategy would be for him to determine what market segment he wants to cater to and how he wants to run his business and how much of a life he wants to have and price accordingly. This is assuming he is not just a hobbyist and wants to run a full time photography business. He has not told us. A hobbyist can charge whatever they want if it is just side money (I know this gets into lots of issues and I don't want to start an argument) Lets face it. A lexus is a Toyota but has a lot nicer finish out and more amenities. They cater to a certain market and get the price they do because of marketing an perception.

Some people think the market price in my area is $5 per sheet no matter what prints are on the sheet. One 8x10 or wallets.

He needs to figure out what he wants to make and his target audience. If he wants to run 50 people a day through his door or 3. This will determine his pricing not his cost. Cost stays the same no matter what. Its his overhead (includes cost) plus lifestyle needs that will determine what he charges. Its a proven fact that if two people are faced with the same item and one costs more than the other they will perceive the more expensive item of higher value. My suggestion is for him to look at it that way. If his work is of higher value that is up to him.

Paul

Originally Posted by kenw

Your prices should be determined by the market price for equivalent work in your area. Underprice to get a bit of business going at first, but eventually you should move to within the "accepted" market range. Folks in high demand can charge above the market rate. Low demand folks can't charge as much.

It's demand that determines your price, costs determine your profits.

Consider: the price of all things in the world is determined by how much people will pay for it, not by how much it costs. Otherwise, a bottle of water would cost us 2 cents, and a Lexus might be $500 more than a Toyota. But folks will pay $1 for a bottle of water, and $10,000 more for a Lexus, so there's the price....

class dismissed.

[barP]

picasso makes a good point. it's not just demand that determines the price of a lexus. cost is a huge part of it because they make far fewer of them. the economy of scale is much smaller for luxury items. a smaller number of buyers have to defray the cost.

but that has nothing to do with print pricing. how many fewer buyers could you possibly have when you view each session's prints as a unique product?

wp.

[dartlrt]

Dennis,

First thing to remember is that you are not selling a piece of photo paper. You are selling the rights for someone to purchase and view your art work. Now what that piece of art is worth in the market place you are looking to sell it in will help give you some boundries for your pricing. Are you selling for the sports market, wedding, portrait, fine art market, each will have a different price forthe same size print.

[HotHolly]

Paul is on the right track here. You can charge what ever you want for prints. You just have to make sure you cover your overhead and the amount you want to profit from each sale. This may not be completely absorbed by print sales. It may be gained in sitting fees, your location fees, and additional product sales.

And you have to arrange your products to push what you want to sell the most. In other words, don't sell them the whole farm (animals and all) and then try to get them to buy a cow.

And I would have to disagree with ya will - demographic has everything to do with pricing strategy. With luxury items the price tag comes with bragging rights. The upper class values things differently than middle class. Middle class tends to value quality primarily (or at least it did a few years ago). Upper Class tends to value brand. Its an interesting sociological phenomenon. It affects a whole lot of which people will work with you.

I've raised our prices again. I have too many clients. Id rather take my time with them and have less of them than have a ton. Short version - my middle class brain thinks our prices are insanely high...but people keep coming. Go figure.

Dennis - you should take your last few sales and tally the total order. Then add in your expenses and see if the bottom line is where you want it. If not, adjust accordingly, including print prices. And here is something more direct - don't charge less than Sears if you are offering more than them. They have changed their pricing on prints to accommodate the digital age of photography, however, they held the total sale line around $300 per session. Their sessions are 15 mins. Sears is solid middle class marketing. Their demographic is middle-to upper-middle class moms. Not a bad demo. Just something to look at.

[kenw]

all I know is basic economics, learned it in school and deal with it daily in business....

yes, you might have to segment your market a bit to home in on a good price on day 1, after that the market will tell you if you are priced right. If you need more business, price it lower, if you have enough, go higher. As Holly mentioned, the "upper" crust is a different market than the Sears Photo market.

If you can't eat on the money you get, well, lower your costs. raising your prices will only drive your customers away (generally speaking) because you have priced yourself out of the market you are in. Sure, if you can move to a more exclusive "lexus" market, fine. But remember, the demand for your product is what allows you to do that. If folks think you are worth it, go for it. If not, well...google "supply demand theory"

What happens to most is that the market dictates what prices we can charge, we think we can't live on that little and so we price higher. And then we wonder why no more business comes our way.

there is a perception factor to deal with (hence the lexus example) but that involves the market price, not costs.

and not picking on you, will/wp, but your lexus example is simple not correct. trust me, it's not at all about the cost. It is all about what people are willing to pay.

Holly is correct: she has plenty of demand, so she can raise her prices: the market allowed this. Had she been in the opposite situation, to attract folks she would have to lower her prices. Regardless her costs would remain equal. But her PROFIT changed.

enough schooling. I'm off to take some pictures...

[barP]

ken, you and holly may disagree, but the fact is that when it comes to consumer products, widget development and manufacturing cost will determine what the widget price eventually will be. the demographics of the market segment you want to capture will determine whether or not you can sell enough of those widgets for it to be a profitable enterprise. if you can't sell enough units to cover fixed costs plus margin, no deal.

that said, none of those decisions get made independantly of the other.

but again, none of this is relevant when it comes to print pricing. our prints don't fit any normal category of "consumer products." so, holly is right about charging whatever the market will bear. i don't disagree with anything that's been said about print pricing. i was really just addressing the statement that "the price of all things in the world is determined by how much people will pay for it, not by how much it costs." it isn't true with ALL things.

wp.

[d2creative]

wow, ok lemme be a tad more specific. :D

This particular case is someone who saw my pics and wants to buy a couple to display in a home she is trying to remodel/sell. The pics have already been shot and are just sitting in my hd. I don't have overhead or anything like that but I do have a an hourly fee I figured out for when I am contracted to do a shoot.

So I know my general hourly fee, and I know how much it costs to make the prints. So now I just need to know how to figure what to charge based on my hourly fee, current market prices in houston, etc.

Any other tips? Cause so far I am not any less confused.

[HotHolly]

Originally Posted by d2creative

Any other tips? Cause so far I am not any less confused.

Holy tangent, Batman! Sorry about that.

Idea: If shes wanting them to decorate her home (which sounds like a nice plan), you might want to approach it backward and ask her what price point she is comfortable with and that you will seek to meet her needs within that price point. I've been having luck when asking it that way. If she says $2, then you know what to do. Sometimes people ask something and the amount they are willing to spend may be much higher or lower than you expect. And since she's talking about setting a house to sell - its most likely important on some level to her. Ask.

Back to the section on what the market will bear, my market is not supposed to bear my prices. Im in a little hick town where median income is $30K. If I wanted more clients, I wouldn't lower my prices. Periodically we have adjusted our prices so they look cheaper on the front end, or come with an ipod or something, but the sales total from each session always holds at the same price point.

Ironically, we usually have a surge in clients when I don't want them (like now - intern graduated, I have no assistant, and Ive been running on empty for weeks). Right now I really don't want more baby sessions, but they keep calling. I tell them I cant take them until the end of March and there are no sales/ discounts available, and I raised my prices (hoping they'd hang up) -- and they book it anyway!

That may be supply and demand - or that you want what you can't have. ha ha.

And I have too much work to do, which is why Im playing on here. I havent eaten lunch yet. Its almost 3pm. Maybe I should just wait for dinner?

[dartlrt]

Start out by figuring what would it cost to get those printed at a pro lab, not a Walgreen’s. Then figure how much profit do you want to figure in and then are you satisfied with selling your work for that price. Remember the price is negotiable down to the lowest amount you set. I think Street vendors selling pictures get around $40 to $60 for matted 8x10 prints if I remember correctly. Do you have a sense for what this women is willing to pay and are you willing to walk away if she does not want o pay what you are charging?

I would say just make her an offer of something you feel satisfied making for the print.

[d2creative]

Thanks Holly and Phil, that helps a little.
I use WHCC so i do know what it's going to cost me.
I'm waiting to hear back from her on specific sizes and stuff so I'll try to get a better idea on what she's willing to spend.

The graphic design vs photography thing has come up before.
I'm used to charging for the design and then charging x amount over my cost for printing.

[NikkiLoehr]

I mount 8x10's and larger.