4 Steps To Create a Win/Win Through Pricing

The relationship between pricing and quality. Hint: it's not what you think;)

15 years as a commercial photographer, I have made many mistakes that have led to discovering some truths about this industry. One truth is that there is no one size fits all approach as every client is different with different needs. One example is with pricing. However, there are several pricing guidelines that I have stumbled upon that work best for me and my clients.

i. Before we start.

No matter the client or project, my goal of pricing is always to create a Win/Win. Tilt the scales too far in either direction will only comprise the quality of work produced, your client’s ROI, and, most importantly, the working relationship.

ii. The Steps.

1- The smaller the client, the sooner you should inquire about their budget. A simple phrase of “Feel free to share with me your all-in-budget for this shoot.” In truth, I don’t really care what the all-in budget is. My goal is to establish myself as a partner in on sharing the fiduciary responsibilities of the shoot. Try saying this, “I spend my client’s money like it’s my own as I want you to see a return from this shoot above all else.”

2- Be willing to say no. If you can’t walk away, then you have already lost. The last thing you want is to be trapped in a project that will zap you of time and energy that is best spent obtaining better assignments. If the budget constrains you from doing your job to the best of your abilities, then you have an obligation to say something. Perhaps offer an alternative art direction that is less costly and better fits their budgetary goals.

3- How to say no??? Try this:

“For that amount, I can’t ensure quality” or “Let me refer you to someone more junior than me.” This allows you to lose the sale but keep the customer. Remind them that you are there for them as an on-going resource to help vet any other creator or future projects. If they like you but cannot afford you, then that’s a small win. Once you brand yourself as the cheap hire, you will never break out of that in your client’s mind. NEVER.

4- How to determine your price (not cost) for a project? There are countless schools of thought on this, and I have tried many of them. What I like currently is a method that prioritizes quality. Ask yourself, (1) how many projects can you execute and deliver in one month while ensuring the quality of the shooting experience and final assets. For me, it’s three shoots per month, assuming there are experienced producers on at-least two of them. So we have 3 per month times 12 months. That’s 36 quality projects a year. (2)Now, divide how much money you need per year to pay your bills and grow personally and professionally. Everyone’s cost of living is different, so this is a moving target. Let’s use a simple example of $100K before taxes. (3)Now divide that annual $$$ amount by the annual project total. 100K/36= $2777. That means that $2777.00 is what you need to clear per project per day for what you do behind the camera and one year of licensing. This is not your total profit or total cost, obviously, just a baseline to hire. This number can grow depending on the scope of work, but it will never dip below. Give people a break on, over time, usage rights, scouting, equipment, etc., but stick to your guns with your rate. How you become flexible and easy to work with, that’s up to you, and how you choose to run your business.

iii. Take the following to heart.

We have a responsibility to our clients not to take on too many projects. That is why I like this model so much as it affords me the freedom to control my bandwidth and focus on the client’s needs. To jump on the last-minute conference calls and respond to emails as quickly as possible. As I stated previously, I have tried many different methods to price a shoot, but only this one truly creates a win/win for you, your client, and the work itself. 

Thank you for reading.

-Alex Martinez. https://www.photosophic.com