Next Steps???

[Christie Photo]

I definitely want to pay taxes on whatever money I make, keep track of all possible deductions, get insurance etc...

Yeah... keep track of everything, keep your source documents (bills, invoices, receipts) and your income tax preparer will help you work out what you can additionally deduct... maybe some travel, partial phone bill and the like.

The BIG snag that Christine pointed out is the insurance part. Apparently you cannot buy liability insurance in Jersey if you're not a registered business. I've never used it, but I've always had it. Hmmm.

-Pete

 

[dandaluzphotography]

I don't think the insurance thing is a big deal. You gotta have it so you gotta do whatever you have to do to get it. I registered an LLC once before and it wasn't terribly expensive. It was like 200 or so. Maybe less.

 

[Christie Photo]

I registered an LLC once before and it wasn't terribly expensive.

Oh... is that all it takes? Does being an LLC = being a "registered business?"

-Pete

 

[KmH]

I'm also taking into consideration my experience; probably moreso. I want to be upfront with clients about that. Of course, I would present a portfolio to show that I can do what they ask, but I would be upfront about my experience. I really believe that honesty builds trust which would lead to referrals, etc... (that and great results). Maybe this is naive, but I believe it.

The vast majority of your potential customers know zip, nada, nothing about photography.......beyond point the thing - and push that button thingy. They have no basis for evauating your experience. They will not judge your photographs against what they see in magazines and in other print media. They will judge your work against their homegrown snapshots.

Where else can they get images made by you? In retail photography, your personality is a big part of what drives word of mouth referrals.

As far as I'm concerned you have already goofed by doing shoots for free. Those people you did free shoots for tell all their friends that you shoot for free. So few if any referrrals from those free shoots will be willing to pay you $125 ($75 + $50). Word of mouth (WOM) advertising like that you don't need.

Like Christina mentioned, and I have also recommended before, bill/price based on industry pricing, but introduce/promote/market yourself by offering a limited time portfolio building discount. The limited time aspect is a "call to action".
"OMG Brittney! Dandaluz Photography is doing a portfolio building promo and you could save a bunch of money having them do the photos you were thinking about getting."

Remember those 20 (actually 25-30) fully edited proofs I mentioned earlier? I gave clients 2 choices if they wanted all of them:
1. They could have all 20 proofs as high quality 5x7 (minimal cropping) chromogenic prints (C-prints) on KODAK PROFESSIONAL ENDURA Premier Paper, mounting and framing extra. (Not inkjet prints I made using my $129 home/office inkjet printer.)
2. They could have them all as low resolution (500x700 pixels) digital files on a Verbatim UltraLife Gold Archival Grade DVD-R, scratch armored surface disc in a high quality protective jewel case. (The jewel case has a custom printed insert graphic -(The Martin Family Portraits - yada, yadya, yada).
Either choice cost the same - $799

"You know what? Those extra (5, 6, 7, 8, 9, 10) images I edited for you came out so good, I want you to have them too. So I'll include all of them too for the same price." Under promise, over deliver.

If you don't have any retail sales experience you'll likely find it tough actually making any money. One way many miss the boat is by not having any samples of the product s the sell that people can look at closely, hold, etc. Holding a framed 8x10 over the couch shows how small the couch and wide expanse of wall makes an 8x10 look, allowing you to up sell a 16x20 or a 24x30. (No wonder it's hard to make a disc of phpotos

Some other notes: You don't take pictures. You make images, or you make photographs - not photos, not pics, not snapshots).
"Yes ma'am, my one hour image making session fee is $129, and the session fee includes a $50 print credit so you can choose what print product, or print products, you want the $50 credit to go towards."

When possible I avoided the words hundred and thousand. "The disc with all 26 of the proof images is only seven ninety nine."
"The high resolution disc of all 26 of the images is only nineteen ninety nine."

 

[dandaluzphotography]

From what I remember, yes. I got a tax ID and everything!

 

[Christie Photo]

If you don't have any retail sales experience you'll likely find it tough actually making any money. One way...

Very nice post, Keith. All very good, tried-and-true advice.

Thanks for taking the time.

-Pete

 

[dandaluzphotography]

I'm also taking into consideration my experience; probably moreso. I want to be upfront with clients about that. Of course, I would present a portfolio to show that I can do what they ask, but I would be upfront about my experience. I really believe that honesty builds trust which would lead to referrals, etc... (that and great results). Maybe this is naive, but I believe it.

The vast majority of your potential customers know zip, nada, nothing about photography.......beyond point the thing - and push that button thingy. They have no basis for evauating your experience. They will not judge your photographs against what they see in magazines and in other print media. They will judge your work against their homegrown snapshots. Where else can they get images made by you? In retail photography, your personality is a big part of what drives word of mouth referrals.As far as I'm concerned you have already goofed by doing shoots for free. Those people you did free shoots for tell all their friends that you shoot for free. So few if any referrrals from those free shoots will be willing to pay you $125 ($75 + $50). Word of mouth (WOM) advertising like that you don't need.Like Christina mentioned, and I have also recommended before, bill/price based on industry pricing, but introduce/promote/market yourself by offering a limited time portfolio building discount. The limited time aspect is a "call to action"."OMG Brittney! Dandaluz Photography is doing a portfolio building promo and you could save a bunch of money having them do the photos you were thinking about getting."Remember those 20 (actually 25-30) fully edited proofs I mentioned earlier? I gave clients 2 choices if they wanted all of them:1. They could have all 20 proofs as high quality 5x7 (minimal cropping) chromogenic prints (C-prints) on KODAK PROFESSIONAL ENDURA Premier Paper, mounting and framing extra. (Not inkjet prints I made using my $129 home/office inkjet printer.) 2. They could have them all as low resolution (500x700 pixels) digital files on a Verbatim UltraLife Gold Archival Grade DVD-R, scratch armored surface disc in a high quality protective jewel case. (The jewel case has a custom printed insert graphic -(The Martin Family Portraits - yada, yadya, yada).Either choice cost the same - $799 "You know what? Those extra (5, 6, 7, 8, 9, 10) images I edited for you came out so good, I want you to have them too. So I'll include all of them too for the same price." Under promise, over deliver.If you don't have any retail sales experience you'll likely find it tough actually making any money. One way many miss the boat is by not having any samples of the product s the sell that people can look at closely, hold, etc. Holding a framed 8x10 over the couch shows how small the couch and wide expanse of wall makes an 8x10 look, allowing you to up sell a 16x20 or a 24x30. (No wonder it's hard to make a disc of phpotosSome other notes: You don't take pictures. You make images, or you make photographs - not photos, not pics, not snapshots)."Yes ma'am, my one hour image making session fee is $129, and the session fee includes a $50 print credit so you can choose what print product, or print products, you want the $50 credit to go towards." When possible I avoided the words hundred and thousand. "The disc with all 26 of the proof images is only seven ninety nine.""The high resolution disc of all 26 of the images is only nineteen ninety nine."

Awesome information, Keith. Thanks a lot. One thing I disagree on is the part about me goofing by doing some shoots for free. I did those more for the experience of actually doing a shoot with strangers and not so much referrals for future business. It would be nice but wasn't really my main goal. Thanks again,Danny

 

[12sndsgood]

Allot of good info Keith. But this is what I always have the hardest time with.

"As far as I'm concerned you have already goofed by doing shoots for free. Those people you did free shoots for tell all their friends that you shoot for free. So few if any referrrals from those free shoots will be willing to pay you $125 ($75 + $50). Word of mouth (WOM) advertising like that you don't need."


For me it doesn't seem right to charge someone your using for practice or to build up your portfolio on. My route on this has been using acquaintences and just going with hey. I'm letting doing this for free with you, but that stays between us and nobody is to know. Making them feel like they got something speacial and i did something really nice for them, and in return maybe that will work into friends of family down the line. Most of the people I have shot also don't have a few hundred dollars to drop on photos anyway so i'm not really seeing it as a lost sale.

That's just how I have been going about it. And not saying it's the right way either.

 

[Christie Photo]

Allot of good info Keith. But this is what I always have the hardest time with...

I can't speak for Keith (and I won't try), but what I take from his advice is a caution about setting a precedent. It's not that you're stuck with you prices forever... it's OK to raise you prices from time to time. Just be careful about "type casting" yourself as a budget photographer.

I've done "invitational sittings" (VERY few... 2 in 30 years, I think) when I want to develop a new technique. All I gave in return was an 8x10 print. I've NEVER tried "something new" on a client during a job.

-Pete

 

[CCericola]

In NJ you don't have to be an LLC. You can be a sole proprietor (which I am). Each state is differant but it seems most states have the directions on what you need on the web. Just for an example:

I have a Sole proprietorshiip. I also had to register a ficticious name because I use my maiden name for business. Then I got a separate EIN (Free online from the IRS). When I regstered for my sole proprietorship I also applied for a NJ state resale certificate (with my new EIN).

I did not use my SSN as a sole proprietor because 1. My bank requires a separate EIN for any business (their policy, nothing illegal about that, I could have just as easily gone to another bank) 2. I use many venders for photography. printing. promotional products, etc... These Venders often need an EIN or resale cert# and I did not want to give out my social left and right.

 

[dandaluzphotography]

In NJ you don't have to be an LLC. You can be a sole proprietor (which I am). Each state is differant but it seems most states have the directions on what you need on the web. Just for an example:

I have a Sole proprietorshiip. I also had to register a ficticious name because I use my maiden name for business. Then I got a separate EIN (Free online from the IRS). When I regstered for my sole proprietorship I also applied for a NJ state resale certificate (with my new EIN).

I did not use my SSN as a sole proprietor because 1. My bank requires a separate EIN for any business (their policy, nothing illegal about that, I could have just as easily gone to another bank) 2. I use many venders for photography. printing. promotional products, etc... These Venders often need an EIN or resale cert# and I did not want to give out my social left and right.

Thanks for this!

 

[Balmiesgirl]

You are definitely low for that area. Check out this cost analysis and it will help you. I suggest you set the prices based on your expenses and business plan (use the link to help also) then offer discounts to get into the market. That way, your clients won't be shocked when you charge you regular pricing.

NPPA: Cost of Doing Business Calculator

Great stuff.... Use the calculator .... Very few people would drop their prices

 

[Hereindallas]

KMH, great advice and well stated