random ramblings on pricing photography
 
|
I’ve been receiving a number of questions lately about pricing photography. Pricing photography is a difficult and confusing process and, I’ll be honest, it’s getting more difficult all the time. There are novice portrait and wedding photographers with great websites, experienced photographers with outdated websites, moms with a camera that aren’t preoccupied with profitability and established professionals offering the complete package. After looking around I understand why many of you are overwhelmed when it comes to establishing price value for portraits and weddings…at the moment I am, too. What will the coming year bring? More photographers seeking part-time income? Or a reduction in the pursuit of hobby-generated photo income?
I’m much more comfortable with pricing for advertising photography but it’s not particularly simple. My studio uses a system based on the complexity of the job and calculating and our cost of doing business, a formula learned years ago from the book Pricing Photography: The Complete Guide to Assignment & Stock Prices
I thought you might be interested in hearing what other photo jobs in my area are currently paying:
Catalog photographers shoot for a negotiated day rate, creating images for catalogs. They shoot for lower daily rates but are guaranteed a certain amount of work. A project for them may last from one week to several months. These photographers usually supply their own photo equipment and may work on location or in the client’s in-house studio. Prices can range from $300 a day for simple studio shots on white to $1000+ a day for more sophisticated photography.
Pricing for other types of photography may be easier to discover, especially if it’s a non-negotiable “take it or leave it” situation. You may be surprised to find that a major news service pays less than $200 to freelance photographers for covering an entire NFL or MLB game, the last time I checked. Plus the wire service claims all rights to the photos. So, for four hours of work, providing their own photo equipment and giving away all future earnings, the photographer walks away with $200. Rates for news and editorial uses haven’t kept pace with inflation and are still around early ‘90’s levels…plus the photographers rights have eroded.
Compare that to rates paid to photo assistants here in the Cincinnati area. Good commercial photo assistants are generally paid $150 a day (up to 10 hours). That rate hasn’t gone up in a number of years and it really is long overdue. In nearby Columbus, OH, I hear the rate is more like $200 a day. So, let’s do some math. If there are 260 working (week) days a year and a good assistant gets booked 3 days a week (that‘s a good year), that’s 156 days a year x $200 = $30,400 a year. Being self-employed, they’ll pay their own taxes, health care and expenses out of that.
Good regional magazines usually pay around $75-150 for one photo used in the front of the issue. A feature photo package seems to pay from $450 - $1500, depending on complexity. There may be additional budget for a makeup or set stylist on important packages. Small magazines may want to pay with coupons from advertisers. Seriously.
Public relations and event photography is often charged for by the hour. Locally, $125 an hour seems to be a reasonable shooting rate (with a 2 hour minimum charge). That’s just the photographer’s rate and CDs, prints and other forms of image delivery are charged for in addition.
As you can see, prices really are all over the board. Many years ago the ASMP tried to publish a recommended price list for their photographers but the Federal Trade Commission ruled it was Restraint of Trade. As a result, we’ve always been on our own. Dan Heller’s Photography Business Blog has an insightful post, Data Analysis and the Pro Photo Industry, that tells the whole story.
I sometimes wonder what the industy would look like if that standardized price list would have been published. Would pricing be viewed differently today? Would photographers work together more cooperatively? Or would the independent nature of creativity still lead us to fend for ourselves?
| Links |
|
* The videos and articles on prophotolife.com are funded through affiliate relationships with quality companies like Amazon.com and Calumet Photo. When you make a purchase from one of these vendors using a link on this site it puts a small percentage of that sale back into our operational fund (and for that we're thankful).
see now i THOUGHT i finally had the pricing situation handled for my biz then i up and moved to the philippines (temporarily) which threw the whole strategy out the window. grrrrrr… i’m starting over and have no idea where my bearings are out here. pray for me that i find my footing again.
Michelle, keep us posted on how things go in the Phillipines. I think I learned a lot reading “between the lines” of your comment. To establish your pricing really was a process that had to be worked through, wasn’t it? Trial and error, finding just where you fit in the local market and where you found profitability? For those hesitant to start out sometimes it requires a just a “best guess” and then fine tuning along the way.
I’ll second the notion that pricing is more a process than a quick calculation; even photo business books rarely give hard numbers. As Jim found, though, it is useful to gauge your local market, your costs, and where on the bang-for-the-buck scale your services sit.
Hi Jim. Just wanted to let you know I really enjoy your blog and love all your how-to videos.
I wonder how Peter Parker is doing this days?
Thanks for the insight into pricing. I kind of figured it wasn’t so cut and dry, but it is very relevant. In some cases if you don’t charge people they may interpret that to believe your work is inferior. I recently quoted someone a $1,500 rate for having traveled to Arlington Cemetary (on the Army’s dime), however, I did drag all my photo and video equipment - I rarely do just one media, what a waste I think. It was for a fallen servicemember, and I basically did it because I felt it would be good for the family to have documented the event for their family history. And the kids are very young. So, there I was, lugging everything around, video/photo, and she practically flipped out when she hear that. Furthermore, for both photo/video I could isolate each serice to $1,500 each! And, that would not include costs. Regardless, she said she paid someone $300 to take some pictures - That’s fine, throw the point and shoot to Uncle Joe, and he’ll hand the camera back to you at the end of the event. There is still retouching, cd preparing, oh- and what kind of quality did you get - behind little Tim’s head? Any modification in angles, creative concept shots? So, generally I’ve defaulted to $50-$100 an hour per hour of my time - actual time as a rough place to start.
One thing you didn’t mentioned was distribution trends - Do you provide simply hard copy formats - (i.e., baby shower - offer to provide a binder with various shots - the good ones with a couple of icon 8×10’s. Then, take orders form all the other parents in the shot and charge them $20-$30 pop for each photo package - what is a package?
Then, the almighty question - do you hand over a CD? Is that a bargaining tool? Do you say - Okay, here is the CD of the files, but that will cost $200 vs. $20 pop for selected hardcopy photos?
Anyone can contribute to this discussion please do.
My video production is a bit less complicated, but not by much. There isn’t very much fluctuation in distribution media - DVD, or web based format, how many copies. The raw files - kept not given out. Charge by Event - $500 +, Editing beyond that included with the event DVD - Little, some, full blown editing, titles, etc. I mean straight video to DVD isn’t my cup of Tea, but it sometimes is expected.
Well, didn’t want to linger the point.
Thanks for addressing this matter, which I am sure is still open for discussion.
If Peter Parker is the norm, he’s probably been asked to move over to shooting video for the online edition. What would Spidey do?
Mike, I usually at least get a chance to explain to clients why we charge what we do. They have the perception that “digital information is cheap”. Once I tell them how much it’s raised our cost of business (i.e., the cameras, software and computers are in need of constant updating) they begin to understand. That doesn’t mean they have a budget for us, though.
As for charges, we charge a processing fee for every file/image a client receives, $25 for every still image that needs output from RAW to a useable format. That includes basic color correction, spotting for dust and very light retouching. Any extensive Pshop work comes in at $125 an hour. Again, for reference, we’re a commercial studio dealing with business clients.
Thanks for that post. Very informative.
“still image that needs output from RAW to a useable format”
I need to learn more about that…can you lead me in the right direction??
Hi Debi, we shoot all of our images as RAW files (as opposed to JPEG). The client can’t use a RAW file on the web or in print materials, so it ultimately has to be output (developed) as a TIFF or JPEG or PSD or something that will work in their layout. Try my post RAW vs. JPEG for more information and let us know if you have any other questions.
The ASMP was ruled against publishing its price list way back before the internet era, at a time when photographers were allowed to unionize. The Federal Trade Commission ruled that the price list was anticompetitive because, at the time, virtually all photos acquired by news media outlets, ad agencies and corporations were obtained through a small number of agencies, not through photographers. The federal statutes on anti-competitive pricing specifically say that trade organizations cannot publish price lists if their doing so would have an adverse effect on prices [that the open market cannot compensate for]. The publishing of price lists wasn’t allowed because of the unions and the stranglehold agencies had on the photo “spigot.” But it was also the case that too many photographers were being barred from participating in the economics of their trade because they either weren’t allowed in the unions, or because the small number of stock agencies wouldn’t take them. Again, this wouldn’t be a bad thing if buyers were able to easily acquire images from other sources, but doing so would violate their agreements with unions and agencies. THAT is what the ruling on “restraint of trade” came from.
As a result, the supreme court ruled that photographers cannot unionize. Once this happened, the contracts became inert. This had the effect of allowing buyers to acquire images from other sources than just union members. Buyers were also allowed to go to other agencies, which were then formed. Later, the internet opened the flood gates to the availability of photos from photographers of all walks of life, which caused prices to drop. And as new stock agencies came online AND photographers started their own websites and selling direct-to-buyers (rather than through agencies), prices dropped further. And as consumers began to not only sell photos, but give them away, this removed any question that a photo trade organization could possibly be considered as having any kind of economic effect on photo pricing.
yet, the ASMP and others are still under the uninformed belief that they aren’t allowed to publish price lists, because the statutes say that “trade organizations cannot publish price lists,” but they also go on to say, “only if such lists would have an adverse effect on economic conditions.” No one in photo trade organizations seem to be aware of that. But it doesn’t matter. The publication of any kind of list would yield no effect at all in the open market, or for its own members. Price controls ONLY work when the number of suppliers is limited to an extremely small group of cooperative competitors because the moment any of the competitors faces economic hardship, that “one” will defect the cooperative agreement and undercut prices to gain the business. Thus, the economic effect of the price list would be muted.
This economic truism was shown by John Nash who won a Nobel Prize in Economics for proving it. I have a blog post called “The Prisoner’s Dilemma: To Cooperate or Not?” that discusses this in detail. You cxan read it and other blog articles that give various explanations for different pricing tactics, methods, structures, and theories, any of which can be useful reading for someone who wants to understand the subject at depth. Those articles are best indexed here:
http://www.danheller.com/blogs
dan
Dan, thanks for the comments. Your website is much appreciated and provides a macro perspective on business and marketing not offered in most writings on the subject. I consider it an invaluable resource that I refer to often and urge readers interested in the business of photography to do the same.
Hey Jim. I was just recently considering some pricing options. Living in LA at the moment, there seems to be an abundance of people willing to work for peanuts. I came here to see if you had posted anything in regards to pricing and if not I was going to email you to pick your brain.
One thing you very slightly touched on in this article is photographers rights, and that’s what I’m really interested in currently and would like to know more regarding pricing. How does one calculate a reasonable price when freelancing for commercial photography and selling off the rights to a photo(s)? Sure we charge for our time and a final product with limited use, but what about selling off the rights to the photo forever? How much of a premium should we put on this? Generally whenever I’ve done some work for anyone non commercially, I put it on paper that these are for whatever general use and any time the work is posted somewhere attribution back to me should be noted since I generally retain my copyright.
Your advice would be more than welcome, and thanks for your work on this blog. It really helps!
I don’t mean to hijack the blog here, but Rick’s question here chalks up as one of the top-10 ever asked.
The problem photographers make is assuming that such formulas or even rules-of-thumb exists. You’re looking at it entirely as a sales process, and you’re forgetting to look at two far more important things: WHAT it is that’s being sold, and YOUR CAREER.
How much you should upcharge to your fees in order for someone to acquire exclusive rights has more to do with your business model from a bigger perspective. If the photo itself is something that fits into your sales process — like stock photography — then it has more value to you, which translates to a higher price to the client to get rid of it. If it’s a photo that has no value to you, then this translates to a lower price to the client. Your goal is to maximize income, and you do that by selling stuff that you don’t need and can’t easily sell well for “whatever you can get.” And you raise the prices on things that you *can* sell well. This is basic market-rate economics. Using that as a basis for negotiation, your next step is to try to understand what the client’s budget is like, whether they already have expectations for a rate of pay, or whether they’re just on a fishing expedition. (It’s common for clients to ask for quotes for such things simply to use as data points to use in their negotiations with someone else.) You need to learn to be inquisitive with clients and ask probing questions that can yield bits of information that help you formulate a price they’re willing to pay. Then you need to determine whether that price is something you’re willing to receive, given the assessment strategy give above.
Another thing to consider is your career. It’s a good strategy to “barter” with clients — give them things they want in exchange for things you want. If the client asks for additional usage or ownership rights to a particular photo or set thereof, and if you can’t make the numbers work once you determine what they’re willing to pay, bring into the negotiations additional assignments, for example. That is, agree to giving them what they want in exchange for a guarantee that you shoot another assignment for them at the same rate you did the first one. And this guarantee is secured by an advanced payment, which is included in the invoice you give them for the current assignment you’re doing. This becomes a mutually beneficial deal: they get the added rights they asked for, and you are guaranteed a new gig. Because you secured it with an advance, they aren’t going to throw their money away and not call you… you *will* get that new assignment.
These are the kinds of strategies I talk about on the business pages of my website: http://www.danheller.com/bizfaq
dan
Dan, you’re not hijacking the blog at all, your informed perspective is always welcome. I appreciate your explanation of pricing / negotiation, it outlines the process we go through every time we’re faced with Rick’s situation. I’ll also mention again what a valuable resource your blog has been for me, so I hope readers have already given you a visit.
Rick, I’d like to make your question the topic of Wednesday’s post so stay tuned. The very short answer is that it definitely is a process to find out just what the client wants / needs from your photography so you can begin to place a proper value on it. But, just as Dan has said, this is all interconnected with the much larger picture of your business and the relationship you have with a particular client.
The tough part…and where I’m guessing you are a the moment…is knowing where to start the negotiation. I wish there was a “one size fits all” number to throw out. I’ll try to work through it more in Wednesday’s post.
Hello Jim
Happy New Year from Romania!
I read and view all your articles and tutorials. Thank you.
I have a little problem with that price for selling the photos with full and unlimited rights.
When I want to charge more for this, the client argue that is the same amount of work for me in a specific project even they use the photo for the website, or for a big commercial.
They tell me that when I buy a car, i pay 20.000$ and i can use it for picnic with my family or i can use it for business.
Another example. A restaurant wants me to photograph a pizza.
So, it will take me one hour for the shooting, one hour for post processing. This is it. Two hours of work. They can use the image for a small banner on their website, for a tv commercial. It is the same amount of work for me…
What do you think?
Thanks,
Dragos
> When I want to charge more for this, the client argues …
> They tell me that when I buy a car, i pay …
Therein lies your problem: they’re dictating to you, not the other way around. Effective negotiation is one where they don’t get a chance to do that. The problem with your mental model of this process is that it’s all about price — it isn’t. it’s about “perceived value.” And the value isn’t just the photograph(s) you produce for the client, it’s the perception of you as the service provider. You’re never going to negotiation well if you keep focusing on just the money. Your goal is to establish value of “you” before the discussion of money even comes up, which means starting from the first time contact is made. How you present yourself in various ways, such as expertise in the subject (cars, for example), or in advertising, or web-development, etc. Your dialog about a photo project should bleed into areas of the client’s broader business considerations, so they feel as though you are even offering more value to them than just a photographer. If done right, your discussions of the project goals and end-use of imagery and all other aspects of the relationship should be such that they not only get a sense of you, but you should have figured out what their budget expectations are. By the time you finally get to price, you just present it to them. Sure, clients often quibble about this and that, but you have to maintain control of the discussion. When they say, “that costs too much,” you should already be armed with knowledge of their budget, their project timeline, and other related expenditures that you can cite to justify that your proposal is consistent with their own project planning.
Negotiation is not a simple matter of applying creative come-back arguments to client’s whining about price. It starts by fostering a relationship from the beginning and establishing credibility for your knowledge and understanding of their business objectives.
dan
Thank you Dan. I understand. But in Romania, for the moment, the price is more important than quality or anything else.
I will try to make some changes in my type of negotiation.
Jim, keep up the good work!
Dragos
Leave your response!
Search Prophotolife.com
Recent Articles
Further Reading
Pages
Categories
Archives
Recent Comments
Most Popular Posts
Related Posts
Most Commented
Tags
approach around the net assisting bulbs business creativity customer service education equipment exposure film fine art gear history insurance interview lenses lighting logo design marketing nature photographer photographers pinhole portrait preview professional organizations RAW review stick-in-a-can studio taxes technical video workflow