How to Price Your Photography
Are you a beginner photographer and have been wondering how to price your packages?
Well I’m here to tell you there really is no right or wrong answer here. I may not be able to tell you the exact price that you should be using, but I can help guide you into knowing how to get there. Let me explain…
There are a wide range of photographers who get paid the big bucks and some that don’t. Theres a lot who get paid very little because they are more than likely underpricing themselves. Most photographers price at $100-$250 per hour depending on their skill level. We will go into that in just a bit but before you even begin charging you need to first have a tax EIN number. By this I mean: you need to become a legal business. If you do photography as a side job and do not do your taxes you can be fined and risk going to jail. I know plenty of students of mine who don’t get caught and a couple who have been. Do it the honest way and just become legal. Please.
The basic premise of figuring your pricing is: The cost of running your photography business + Cost of goods + Cost of your time and labor (editing) + Profit + Taxes = Pricing
Let’s jump in shall we?
Cost of Running Your Photography Business:
After choosing your witty business name you will need to obtain a business license or permits that your city or state requires and become legal. Even though you will be taking photos using a digital camera, you may be offering prints so you will need to collect sales tax if you live in a state that charges said sales tax. Your state’s comptroller will have the necessary forms and info that can tell you how to collect and pay it. After you complete this you will be able to open a business bank account that will remain separate from your personal account. This makes things easier come tax time. So add these costs to the list!
The next cost of running the business would be your website. How much does this cost you? Will you be buying your own personal domain? If your business is the name of the city you live in or a state name it is going to cost a whole lot more. Fortunately for you, there are plenty of great names available for the cost of around $20. Next is the actual cost of using your website builder. For instance, I use Squarespace and they charge $12 to $40 per month depending on the data amount and it is paid annually. The more advanced your website is, the easier things will be in the long run. I have the $40 per month package and I also use a scheduler with it called Acuity Scheduling. This feature (I do believe but don’t quote me) is an additional $10(?) per month. This allows me to add a personalized scheduling system that syncs to my Google Calendar. The features in this program allow me create my own packages, enter needed forms or documents that clients sign as they book; as well as pay and schedule all at the same time. So no need to wait for payment or have a hassle of paper forms. It’s all right there in the scheduling system. As far as the online payments I pair that scheduler with Stripe Business which is also an additional cost and it sends all money received directly into my bank account every day. So in other words: I get paid every day. So whatever you use within your website, add that into the cost.
Next, how do you plan on delivering the portraits? Will you be using the old school USBs or DVDs? (Don’t do this.) How about the free Dropbox or Google Drive? (This looks unprofessional.) Perhaps an online system? (Do this!) Pixiset and Cloudspot are really great ways to deliver mess-free, hassle FREE and get this: your clients can ORDER prints right through you by a third party lab. It is super impressive and it lays out your portraits in a simple, yet customizable, layout that delivers beautifully! You get to create your pricing for prints or use their simple “auto set charge” for your clients! However they are on the more pricier side of life they are completely WORTH IT! I use Cloudspot and will never use anything else. I have the unlimited $40 package that allows me to hold as much data as I want because…well…I over shoot every session and over deliver. Way. To. Much. Ha.
Insurance. This is a huge part that not many beginners think of… Insurance can be purchased as little as $25 from State Farm and range up to …who the heck knows. My business insurance costs $35 per month and covers all of it. From equipment, lawsuits etc, you name it. This is a very important thing to have especially if you plan on buying expensive equipment and fear the “sue-happy” people running around in this world.
Lastly for the cost of running your business are all the essentials. Let’s jump right in!
The Essentials:
Depending on the equipment you use, you will have to tally in that as well. This will help you determine the amount you should or shouldn’t be charging your clients. Yes the camera is a HUGE factor. But the lenses you use are a whole different level. Say you have a canon point and shoot camera and you are charging your clients $200 per hour. You would be extremely over-priced because with a point and shoot, you do not have the same quality of a Canon 6D Mark II. A point and shoot camera is NOT a professional camera. Cheap equipment means cheap quality. Cheap quality means crap print. Your eyes will notice. You need a DSLR camera that can shoot in raw and you need a great lens to pair it with. My advice is to get a good DSLR in the range of $450+ new. A great lens would be at least $1,350+ new and a descent lens would be around $650+ new.
Lighting equipment! This is something I don’t use much because I love natural light. The only time I really use it is when I am indoors at a wedding. For the most part 65% of my work is outdoors. I use an OCF from time to time but with my 35mm 1.4 Art lens I am able to capture a great image in low light. Not to mention I barely break 100 lbs… so I’m totally NOT about to lug around a huge light and soft-box (unless an assistant is with me.) I don’t prefer flash photography either….But to each it’s own. Moving on!
Wear and tear and replacement costs. (If you have insurance you won’t really have to worry about this one.) Add it or don’t depending on your needs!
Fees of professionals. These include second, third and fourth (etc.) shooters for weddings. Accountants, assistants, etc. I have two assistants that work my big weddings with me and I pay them $50-$85 per hour because they are worth it. Hiring a lawyer to help you with a legally binding contract will save you BIG in the long run. Have a contract with every client to protect you AND them.
Studio costs. Where will you be hosting your sessions? In your home? Garage? Rental? Will you be (or already are) a travel photographer like me? Add in the cost!
How about computer? Photoshop and Lightroom Software? Back-up drives? Add it in!
Costs of classes for advancing in the industry. I take classes online once every month at $100+ and even study one hour per night (for free) researching on things I can improve on or something I have not learned yet.
Internet costs.
Marketing costs. Such as the cost of running Facebook ads, Google ads, WeddingWire ads, etc.
Emailing or Mail list. (This is a great way to keep clients coming back and a way to send out mass invites to mini sessions. Hint: It gets me booked out with a wait list every time!)
Time and Labor! Ya’ll, time is money. Many photographers don’t really factor this one in correctly. Yes, after adding up everything else it may seem pretty costly to factor more in to it, but we ALL have bills to pay! Some of us have mouths to feed too. For some of us this is our livelihood! I shoot weddings and I charge $1500-$4000 depending on the package. For example: to determine wedding photography prices you would need to factor in the time you would spend in pre-production, time traveling and meeting up with the client, setting up equipment, the actual shoot time and then there is the post-production time. Be super realistic and factor in delays and overages that are bound to happen when you are in busy season. It’s a lot!
Profit! How much will you make off of each shoot? This will be different from project to project so be sure to work this in appropriately for each package you have.
Add in any other general expenses associated with your photography business.
“Competition and Value”
What is the value of your images? Are the high quality?? Are your images pretty consistent and tack-sharp? No?: Go lower. Yes?: Go higher. Experience speaks. Some will say that other photography businesses are competition but I do not like to think of it this way. There will always be money to be made out there. You just have to target the right people! Start by looking at what the really big pros in your area are charging. Charge competitively! If you under-cut yourself you will get the low-ballers and the ones who ALWAYS want a deal. Do not fall for those who do not appreciate your time and effort! You are worth more than that! You deserve better than that and you won’t accept any less than that! Am I right? I better be! ;-) Don’t ever sell yourself short for a quick buck. If you do, you will always be known as the “cheap” photographer with extraordinary images. Don’t be like 2016 Sammi that always charged $50 for a full shoot. (Eeeek.) Avoid lowering pricing in order to “win” clients. If you are priced really cheap then potential clients may be wondering “What’s the catch?”. Underpricing can set your standards low, while over-pricing may deprive you of generally prospective clients. Create a price range and stick to it as it will keep you well within your profit margin as well!
All of these hidden costs really add up fast. Everything has a charge. Even client proofing, storing, and delivering files have a charge. Photography is NOT about just taking a photo and sending it to a client. There is so much more that we have to do and the costs really add up fast. Do not undercut yourself because you are afraid to charge $375-$475 per session like I do. People WILL pay it, believe me! This is really a very time-consuming business to run but MAN! It is WORTH it!
Helpful hints:
*Never work free of charge unless it is for a donation (or only when you want to get super creative). Donations boost your business. “TFP” shoots do not. Keep a fair price and you can even run a special portfolio building discount for your clients while still bring in something! You can even offer a 100% off in exceptional cases that add a lot of value to your portfolio!*
Cheers to a successful business!
Sammi
