First paying customers

[Boudreaux]

Can any professionals who already have established businesses please help me. I am a photographer who is ready to open up shop instead of giving out freebies. I have done several portraits on a voluntary basis to get the experience i need. I have gotten great feedback and I have inquiries on my pricing. My question is, as a new business in photography what are some reasonable prices to offer at first? I specialize in lifestyle portraiture, seniors, families, children, babies

 

[Bitter Jeweler]

Your prices will depend on your overhead, like insurance, marketing and such, and your wages, profit margin. Are you actually starting a business, or just looking to get paid for a hobby? Have you looked into a vendors license, and sales tax?

 

[Boudreaux]

well, it started as a hobby but I am turning what i love into a business. All of the things you said i understand. My overhead is small right now because i am only shooting either on location or at my home(i have beautiful scenery), I have no employees, marketing will cost the most for now I am assuming. I already have a website (its unpublished because I am still perfecting it). I will need to get a sales tax license and already printed the forms and will be submitting that this week. Vendors license, do I need that because I am selling a product(pictures themselves)? I use Millers lab for photo processing so wouldn't that be the vendor? I hope that was not a question marked with stupid written on it!

 

[Bitter Jeweler]

You are providing a service, which gets taxed, regardless who prints your photos.

Basically you need to charge enough to more than cover your costs and make a profit. As a home "studio", you can include "rent" and that provides some tax write offs.

 

[Boudreaux]

ok, thank you for your help and insight i truly do appreciate it

 

[Bitter Jeweler]

Your welcome. Sorry it's not specific advice. There are just a lot of variables.

KmH will hopefully join in the conversation with a ton of info. He's good with this kinda stuff.

 

[KmH]

Your prices will depend on your overhead, like insurance, marketing and such, and your wages, profit margin. Are you actually starting a business, or just looking to get paid for a hobby? Have you looked into a vendors license, and sales tax?

Absolutely. Your overhead is any non-reimbursed business expenses including your salary and contributions to your retirement fund, and your cost-of-goods-sold. If your pricing doesn't cover the above, the business won't actually making money. In short, to run and maintain a part or full time photography business requires knowledge of at least the basics of business.

Can any professionals who already have established businesses please help me. I am a photographer who is ready to open up shop instead of giving out freebies. I have done several portraits on a voluntary basis to get the experience i need. I have gotten great feedback and I have inquiries on my pricing. My question is, as a new business in photography what are some reasonable prices to offer at first? I specialize in lifestyle portraiture, seniors, families, children, babies

You have already established yourself as a freebie photographer and raising prices is one of the most diffiicult things a business can do.

You would have done better by having prices and offering a substantial portfolio building discount?
Few, if any, of the clients you have had so far will be willing to pay for your service in the future.

Do you have signed model releases from the people you have made photos of? If you don't, you cannot legally use any of those photos for self-promotion or self-publishing.

The town I live in has an ordinance that prohibits having a service based business in a residence.

Most states expect business' to collect and forward sales taxes to them. They get pissed if they discover a business hasn't been doing that, and will add fines and penalties to the amount they think is owed them.
DFA - Sales and Use Tax

And, if one of your competitors thinks you are undercutting them by not having a legal business they can just get online and:
DFA - Suspicious Tax Activity Reporting

You will need to check with your insurance agent to determine if any business and photo equipment claims you may need to file would, or would not, be covered by your homeowners policy.

You will need a contract that is enforcable where you do business.

Good luck with your new venture. :thumbup: