Pukka312
TPF Noob!
- Joined
- Dec 7, 2012
- Messages
- 193
- Reaction score
- 50
- Location
- US
- Can others edit my Photos
- Photos OK to edit
Doesn't it just basically come down to the target audience? If you want to follow the Lexus model and market yourself as a high-end luxury product, you don't look for your customers in a Kia parking lot.
Or maybe on the flip side, it's easier to look at the Wal-Mart model...they hold a majority of the market because they offer products at low prices, even though it's often inferior quality, but due to the massive number of customers, their business thrives. Wal-Mart did force many of its competition to either lose business or rework their business plan. Wal-Mart isn't going anywhere because there are too many people who can't afford (or who simply see no value in spending) more. If you are trying to compete against the giant, you'll probably lose because you're looking at the wrong target market. If you want to follow the Wal-Mart model, hey, it's your business. (Disclaimer: I do realize there are probably many photogs who haven't even considered a business plan, and simply fall in the low-end "Wal-mart" model because they've never successfully done any cost analysis to determine their pricing structure. They just throw out a number that they feel is fair without consideration of expenses. So yeah, some businesses are probably accidentally successful with obtaining clients through pricing, but they are probably making next to nothing in profit- so why be jealous? Those clients are still not in your target audience if you are one with more skill, better quality products and higher prices)
You just have to remember, the percentage of those who are wealthy enough to afford high end is far less than those who are scraping by. You are targeting a minority audience and that's when you have to refine the other aspects of marketing, because you would then be competing amongst your peers with substantial talent, and similar price ranges. At that point, I assume the better businessman comes out ahead.
Or maybe on the flip side, it's easier to look at the Wal-Mart model...they hold a majority of the market because they offer products at low prices, even though it's often inferior quality, but due to the massive number of customers, their business thrives. Wal-Mart did force many of its competition to either lose business or rework their business plan. Wal-Mart isn't going anywhere because there are too many people who can't afford (or who simply see no value in spending) more. If you are trying to compete against the giant, you'll probably lose because you're looking at the wrong target market. If you want to follow the Wal-Mart model, hey, it's your business. (Disclaimer: I do realize there are probably many photogs who haven't even considered a business plan, and simply fall in the low-end "Wal-mart" model because they've never successfully done any cost analysis to determine their pricing structure. They just throw out a number that they feel is fair without consideration of expenses. So yeah, some businesses are probably accidentally successful with obtaining clients through pricing, but they are probably making next to nothing in profit- so why be jealous? Those clients are still not in your target audience if you are one with more skill, better quality products and higher prices)
You just have to remember, the percentage of those who are wealthy enough to afford high end is far less than those who are scraping by. You are targeting a minority audience and that's when you have to refine the other aspects of marketing, because you would then be competing amongst your peers with substantial talent, and similar price ranges. At that point, I assume the better businessman comes out ahead.