Pricing Model Advice

[GreggS]

Hi all-

I've got my first commercial client after starting my LLC. The client is a major car dealership in my area, and he's requesting photos of three of his dealerships. The images are to be used in their commercial marketing. I've got my commercial license ready to go, and legally speaking everything else is in place.

My question for the professionals out there is related to pricing models. With commercial clients like this, what's an fair rate for such a project? Do you pros charge more of a flat rate, or a cost per final image? Any advice would be helpful.

Also, please know that my photography LLC is more of a side-business, as I hold full time employment elsewhere. Hence my 'noob' type question here.

Thanks for looking.

 

[tirediron]

Ummm... a little late to be figuring this out. Just sayin'... Start by asking what their budget is for the project. You can probably go 10-15% over that without issue. Unfortunately the days of high-fee commercial licenses are disappearing rapidly. A couple of years ago, I lost a job with a VERY large international construction company to shoot a new building in town with a bid of $4500 which included four hours of shooting, a framed and matted print and six high-res digital files.

The traditional formula for a job like this is straight time (hourly rate) to produce the images plus licensing.

 

[KmH]

Yep.
You charge or your time and talent for producing the images and then charge for usage of your copyright, a use license.
:: PLUS :: License Generator
Well written use licensing can provide recurring income.

Cradoc software sells a commercial/assignment use pricing application called fotoQuote Pro.

Salesmanship skills go a long way towards convincing your customers that your work is worth more than any competitors work.

 

[vintagesnaps]

Doesn't matter if it's full or part time, it's necessary to be prepared. Get on American Society of Media Photographers - Homepage or PPA and look up licensing usage, contracts, and pricing guides etc. (which may be the same ones that Keith posted). Look at the Photo District News PDN Online | Photography News, Techniques, and Gear Reviews for Professional Photographers to find out what's current in commercial photography.

For creative work the pricing is for your ability, expertise, time spent learning and practicing and developing skills, as well as cost of equipment, etc. I think that's why it can be challenging to determine pricing. (And taking into account regional price differences, a saturated market, etc.)

 

[GreggS]

Ummm... a little late to be figuring this out. Just sayin'... Start by asking what their budget is for the project. You can probably go 10-15% over that without issue. Unfortunately the days of high-fee commercial licenses are disappearing rapidly. A couple of years ago, I lost a job with a VERY large international construction company to shoot a new building in town with a bid of $4500 which included four hours of shooting, a framed and matted print and six high-res digital files.

The traditional formula for a job like this is straight time (hourly rate) to produce the images plus licensing.

Thanks. And yes...It would have been ideal to have this figured out ahead of time. But my LLC arose out of a desire to produce fine art prints for local shows, and not so much to delve into the commercial realm.

But when a GM whom I gave an UBER ride to takes my business card and reaches out...Well, why turn down the chance?


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