Setting prices for packages

[Jennifer Luedtke]

Hello! My name is Jennifer and I live in the Chicago suburbs. I recently started a photography business (May 2013) and am having difficulty with clients and my pricing.

There seems to be a recent influx of photographers in my area that have incredibly low prices thus many potential clients go to them instead of me. I am very confident that my pricing is competitive with the work I put out and certainly don't want to sell myself short but at the same time cannot afford to keep losing clients. Has anyone else had experience with this? What did you do?

 

[Trever1t]

People whose only concern is price don't deserve my work. .or so that's my attitude.

 

[Mach0]

People whose only concern is price don't deserve my work. .or so that's my attitude.

+1. Also, if your work is better, then there's the added value. If it's not... Well that's self explanatory.

 

[Jennifer Luedtke]

I believe it is. Sometimes I don't think the client really cares though as long as their getting a good deal price wise.

 

[pixmedic]

we do portraits and weddings, and get calls all the time for people wanting family portraits done for $50-$60 and weddings for $200-$300...sometimes less.
I don't know about any other photographers in our area, but we declare and pay taxes on every dollar we make, so $50 sessions don't really go very far after the gubberment takes their cut every quarter.
I would rather turn down the work than do the calculations and find out ive been working for $5 an hour.

I think with cameras so prevalent nowadays, people just assume that since it only takes them a few minutes to snap a picture and upload it to FB, that's all the time we are spending on the pictures too. Totally not the case. I don't even do pictures for coworkers for $50, let alone strangers.

the bottom line is....well, your bottom line.
you need to figure out your cost of doing business. how much it costs you in time, equipment, processing time, business taxes and a boatload of other factors to determine how much you have to charge to make a profit.

if you cannot make enough money to cover your costs of doing business, equipment maintenance and replacement, and your salary after you have paid the business taxes, then you are better off keeping photography a hobby.

 

[KmH]

Your problem is not about pricing.
Your problem is about less than effective marketing.

What client demographic do you market to?
75% of your time needs to be devoted to marketing your business and doing routine business tasks.
You should be marketing/advertising your Valentines day promotion right now.
And you should be putting finishing touches on your spring marketing/advertising/promotion plans.

 

[Vtec44]

It's all in your perceived value. The goal is to educate your clients why you charge the price that you charge and there's value to your services that money cannot measure. I officially started my photography business in 2012 and never wanted to compete on price. I've never given out discounts because I see it as cheapening my brand. There's always someone that will do it cheaper and that is okay. If the clients flock to the cheaper photographers, then I'm not doing a good enough job in elevating my perceived value.

 

[KmH]

Yep. That's marketing.

 

[Austin Greene]

I avoid packages all together. The client feels like they are getting a custom-priced package, and it keeps me from getting boxed in when it comes to trying to raise prices.

Lastly, you need to inspire FOMO: fear of missing out. They aren't buying the photos, they're buying you. Your vision, your talent, and everyone wants you. Once you inspire that, it's much more difficult for a client to say "but they do it cheaper", because "they" aren't you.

 

[NancyMoranG]

Welcome. I am not in the business but wanted to add my 2cents.
Of course KmH is right. You should be working on Valentine promos.
When I was in retail, I knew that Dec 1 in the midst of mad house Christmas, my Regional mgr was going to call asking for my mall January sidewalk sale dates. And the bathing suits would be in stores in January for winter cruisers etc.

I remember an old saying..
Haircut business opens across the street from you offering $5 haircuts. Oh no, we're sunk....alittle marketing comes up with your new slogan, 'we fix $5 haircuts'

There are a lot of posts here with exactly your situation. You will find great advice given to others in your same situation.
Good luck.
Nancy