Offering Print Credits

[DanaDawn]

I'm still portfolio building and only offering digital prints at the moment but I've been looking at different ways to set up my pricing in the new year.

Can someone explain how you make a profit by offering a $100, $200, or whatever amount, print credit when a session is booked?

I've seen some pricing set up, for example, as: $200 session fee plus $100 print credit.

Thanks!

 

[Big Mike]

Print credit is a good selling feature because it has added value. It has a lot more value to the client, than it costs you out of pocket.

For example, lets say that your 8x10 print price is $25. With a $100 print credit, your clients could get four 8x10 prints. Your actual cost of good sold for 8x10 prints is probably something like $2 each. So at the end of the day, the client feels like they got $100 for free and it only cost you $8.

Of course, you have to consider how much this cuts into how much they would have ordered without the credit. If they would have ordered four 8x10s, even without the credit, then you missed out on $100 of additional revenue.

So what you really want, is to either build the revenue into the sitting fee, or sell plenty of prints above the credit. Think of it as a way to get the ball rolling for them to order many more prints.

 

[DanaDawn]

Print credit is a good selling feature because it has added value. It has a lot more value to the client, than it costs you out of pocket. For example, lets say that your 8x10 print price is $25. With a $100 print credit, your clients could get four 8x10 prints. Your actual cost of good sold for 8x10 prints is probably something like $2 each. So at the end of the day, the client feels like they got $100 for free and it only cost you $8. Of course, you have to consider how much this cuts into how much they would have ordered without the credit. If they would have ordered four 8x10s, even without the credit, then you missed out on $100 of additional revenue. So what you really want, is to either build the revenue into the sitting fee, or sell plenty of prints above the credit. Think of it as a way to get the ball rolling for them to order many more prints.

Thanks Mike! I could never understand why people offer the print credits. But I guess if they're charging $300-$400 for a session, and advertising a print credit... It makes more sense than a $100 session and $100 print credit. Chances are whomever can afford the $300 session is going to order a lot more than $100 in prints anyways.

 

[BryanAngelo]

Hi DanaDawn, this is my first reply in the forums. I'll play devils advocate and present the opposite side of the first response. Print credits are a big no, no from a sales standpoint. Before my career in photography I exclusively worked in sales. I agree with Big Mike in that from a photographers aspect offering a print credit may seem like added value to your client. Typically a print credit will be used as a "pull through" item. For example your bronze collection may have a print credit of $100, Silver $200 and Gold $300. You then use the print credit to pull the client up a tier from your middle collection to your top collection. That's exactly what you should do, try and add value to pull the client higher and book a better collection.

However, as photographers we tend not to be the best sales people. You should try looking at the situation from your clients perspective. If you were going to go order photos and know that when you sit down you have $300 to spend, why would spend more? A client typically will not spend more! Here's why, if you're a la carte pricing is too low, you're client will have a huge print order and they wont "need" anymore prints because they already ordered a ton. If your a la carte pricing is too high, they will only want to spend the print credit because getting more prints would seem too expensive relative to the cost of the session. True, it doesn't cost you much to full-fill the order but instead of profiting money from that order session you've taken money out of your pocket and wasted an hour or more of your time.

Photographers don't make money by just shooting for their session fee, or just selling a CD of images. We make money by selling products. Wall art, Canvas, Albums, etc. For me I use my albums as one "pull through" item. I sell an experience to my clients, the idea of having their cherished memories last a lifetime, an heirloom they can pass down to their children. Whether you're photographing seniors, families, babies, anything you should be selling your client something tangible that has a high perceived value to them.

That said, the better pricing option in my opinion is to offer collections ( which do not offer prints, or print credits), and print packages. For example my top tier wedding package at $4299 includes many pull through items, like a second professional photographer, my archival grade, hand made, 8"x19" wedding album, wrapped in italian leather, Cinematic DVD, A themed engagement session, a boudoir session, just to name a few. They are getting a ton of perceived value, and that's partly because I am educating them as to why it is valuable to them.

My print credits range from $300 up to $800. You're probably thinking why would someone pay me that much to photograph their wedding only to pay me more to buy prints? Again perceived value. My a la carte pricing is artificially high, and that's for a reason. Do you really want a client a year , or two down the road to call you up and say "Hey, Aunt Betty would really love an 8x10". Now you have to take the time to find their images, create an order, and pay for shipping, for one 8x10! Again, you've lost money. So, I discourage buying directly off the a la carte for that reason and also to provide an anchoring point of the value of my products and services. For example if you added everything together separately the client is getting ,with my top tier wedding collection valued at over $8000 ( based on my a la carte pricing ). Now, when you look at the price of $4299 it seems like a steal. That same principle of perceived savings is also reflected in my print collections. You see this exact sales model in all of retail. That brand new camera might retail for $1800, but today it's on sale for only $1200. Great deal right?

You're probably thinking holy crap, that's crazy. Think of it this way, when you go out to a nice restaurant, you look at the menu and see the prices. You may find them to be high, but the atmosphere is great, your server comes over and is wonderful, there's live music playing on stage, but even though you feel the pricing is too you stay and order anyway. Why? Because you're paying for that experience that you're having and enjoying. You probably know you're paying 4-5 times more than what the food actually costs. Then add in for the beverage you had at the bar, that extra order of garlic bread, and then the tip for your server, bartender and coat check. Could you have stayed at home, cooked your meal, put some music and had your friends over? Sure, but it wouldn't have been the same experience.

Your client does not see the value in retouching, print credits, or really even the quality of your work. So why are we trying to sell them on those aspects. Stop trying to out do the competition with even lower prices, and all the high res files on a disk, and more time for less money, and more prints included. Before you know it you will be busting your butt for less than minimum wage, ending up burnt out, hating photography. Plus you'll find that you'll have less clients. Or worse clients who you would rather not work with. Instead, I think you should be selling your clients that experience they will have with you, and the value you can offer them through your products. More specifically, how those products add value to their life.

One last thing. On clients, we should stop trying to be everything for everyone. Pick they type of client you want to have, creating the type of photos you love to make. Then go after only those clients. In the end, you'll be making more money, working for clients who appreciate you as an artist and who can see the value in your work.

I know this was a really long response, but I hope it gives you some insight and helps. It may not be right for everyone, but it works for me.

 

[KmH]

One last thing. On clients, we should stop trying to be everything for everyone. Pick they type of client you want to have, creating the type of photos you love to make.

Stated another way - qualify your customers.
Market and promote yourself and your business to the socioeconomic demographic you want to attract as customers.
If you want to make good money doing retail photography, you want to attract the kind of customer that regularly shops at Neiman Marcus, instead of the customer that regularly shops at Walmart.