How To Price Portrait Photography?
How To Price Portrait Photography? Words of Advice from a Professional Photographer
As a general observation, I am shocked at the low prices of a lot of portrait photographers – especially new photogs, and I hope this isn’t offensive to anyone, but what is more important than your photography, is your business skills when running a business. This industry is completely saturated with underpriced photographers – many talented. Think of this — the stats are something like 95% of all photography businesses fail. What makes you feel that you should be in that 5% that does not fail?
Business sense, that’s what. Have you marveled at a local photog who does really boring work, yet they are always busy and their prices are more than yours? Why is that person a success and you can barely bring people in even though you are always hearing how everyone loves your work… It’s because he/she knows how to run a business.
Everyone asks – how should I price my portrait photography? So and so has $25 8x10s, so I can’t go higher than that. Okay, so research all the local portrait photographers and find out what they are charging. Use that as a guide, but understand, many photogs do not have their pricing on their site, and there is a reason for that. You need to price yourself for profit. If you are new and still portfolio building, something that is great to do is set your prices based on turning a profit (as I will describe below), then sure, discount your prices and be CLEAR that you are portfolio building. That way, when you are done PBing, you can return to your already advertised REAL prices, and you won’t make your previous customers angry because they knew at some point you would move on to them. The problem with starting too low is when you start realizing you aren’t turning a profit, and you start to raise them, you are going to be without business because people will get angry with you for raising them. So be honest and upfront and clear about what exactly is going on, and you will continue to have clients who have built a relationship with you and understand what’s going on. Don’t drop a bomb on them, by any means. Once they have invested with you, they are invested, it’s a relationship, maintain it.
Another thing – if you do not need the money right now because your spouse is the breadwinner, now is a GREAT TIME to build an exclusiveness about your business. You don’t need the money, so why not price yourself to make it well worth it. So you get a few sessions a month. You are PAID WELL for your time away from your family, and then as word of mouth builds, you are viewed as a higher priced, more exclusive portrait photographer – and that can be quite desiring for many crowds.
The thing about running a business – you have to take emotions out of it. By emotions, I mean “I want people to still be able to afford me” “I don’t think I am good enough” “I’ve never done this before” “I can’t afford me (I beg to differ – how much did you spend on your living room furniture? $3,000? How much did you spend on that big screen TV with surround sound? I have news for you – pictures last longer and are more important in the longrun. Clients will not value your work, if YOU don’t value it. News Flash: WalMart’s a la carte pricing is $50 for an 8×10. I’m not talking about the coupons. I’m talking about for one of those crappy ugly 8×10 a la carte backdrop pictures of your child with a fake Christmas tree, where you only got 15 minutes to get your child to smile printed on substandard photo paper is $50. You offer WAY better than that to your clients, don’t you?
When I see some charging $200 and that includes all the digital files or even some of the files or even a $100 print credit with $20 8x10s, I cringe because that photographer can be making less than minimum wage and has no idea.
Do you have a reason for pricing the way you do? Do you just toss it out there and hope for the best? Or do you have concrete logical reasoning for why you are pricing the way you are. You need to take your EMOTIONS out of this and think like a business owner. No business owner should be making less than minimum wage. You really need to think about business management (classes would be a great idea).
So how do you price? Work backwards to figure out what clients need to spend. So many people want to skim over this because they are “arteests” and think it’s all about the talent, not about the pricing structure. WRONG! Artists work from emotions, and you better step outside of that for a moment and keep those emotions and business separated, or you will BE a starving artist who will one day look back and say “my kids are grown, where did the time go? I sat in front of that computer for hours for less than minimum wage… I wish I had that time back with my kids….” No one looks back and says “I wish I would have worked more away from my family….”
Ask yourself how much you want to make per year. My personal goal is always well into six figures, but I’ll back this down to a more reasonable goal for newbies.
Okay – let’s say you want $50,000 SALARY for a full time BUSINESS OWNER. When figuring this out – what do you value your family time at? $50 an hour? $100 an hour? $10 an hour (REALLY???? You may regret that one day years in the future – don’t set yourself up for regrets) Don’t laugh – some people do this for $10/hour and then pay a babysitter $5/hour. It boggles my mind.
Work backwards to figure out your pricing structure.
1. Income desired is $50,000. Again, you are a business owner, you don’t need to be working for pennies. Add 35% to that (that’s for your taxes as a sole proprietor). Yes, you need an additional $17,500 to cover your taxes. So now your income has to be $67,500 as you are going to owe Uncle Sam a nice chunk.
2. Add your expenses to your desired income – $67,500 plus $25,000 equals $92,500 -Don’t think $25,000 is a lot for business expenses. That’s not a lot at all. Last year alone, my expenses were $70,000. Expenses means everything – gas money or mileage, office supplies (paper, ink, packaging, file folders, pens, pencils, envelopes, sticky notes, light bulbs, batteries, whatever….etc.), office equipment (computers, software, actions, mouse, keyboard, file cabinets, books, internet etc. etc. etc.), studio supplies and equipment if applicable, portions of gas and electric bills, telephone bills (if working out of home, it’s portions of this vs. full amounts if you have a studio) photography supplies and equipment (cameras, lenses, memory cards, lens cleaning supplies, flash, strobe, softbox, camera bags etc. etc.), packaging supplies (bags, boxes, bows, tape, labels, etc.), postage, props -yes, all those baskets, newborn hats, wraps, backgrounds, chairs, stools, etc., marketing supplies – print samples, business cards, etc. oh and your business insurance. Do you have studio rent? Then think much more than $25,000 as expenses. The figure I am using is based on not having a studio – and I am being nice, most with even part time businesses have higher expenses than $25,000.
3. So you need to bring in $92,500 in sales every year to get your desired income of $50,000. How do we go about that? Okay, ask yourself – how many weeks per year do you want to work? Let’s say 48 weeks per year (don’t forget, you may have your kids home for spring and winter breaks, etc.. $92,500 divided by 48 equals $1,927 per week. You need to have $1,927 per week in sales.
4. How do you want to achieve that? How many clients do you want per week?
If you want 2 clients per week, you will have to have two sales of $963.54 (if you are selling albums/prints, make that $1,163.54).
If you want 4 clients per week, you will have to have four sales of $481.75. (if you are selling albums/prints, make that $681.75)
Umm… okay, why did I add the parentheses? What are your COGS (cost of goods sold). If you sell an album, some prints, and a canvas, you are looking at COGS of being around $200 per customer – factor that in.
A little note, how many hours exactly do you work for your client. Hmmm… An hour in transit, 2 hours in session time, 4 hours proofing/editing, an hour uploading and doing office tasks, 3 hours between phone calls and scheduling and emails and questions from client and client sale finalization, packaging, ordering etc.. So you did 10 hours for that client? (we didn’t include other things like marketing and bookkeeping and in person ordering, but I’ll skip that for now – challenge: log in while you work on a client, EVERYTHING you do related to that client, I bet it will be close to 10 hours or more per client). Well that’s not bad, that’s about $50/hour toward the business for option one, having two clients per week. That’s half of what plumbers make, though… and guess what, your PICTURES LAST LONGER! :laugh: … but option two puts you at about $25/hour toward the business. Not TOO bad either – but you SHOULD be making at LEAST $50/hour as a BUSINESS OWNER (although myself and others would tell you as a business owner, you should actually be making more like $100/hour because you don’t want to forget having retirement, college funds for your kids, etc. and as a business owner, you should accept nothing less in my personal opinion or you may as well just work a job for someone else that is less stressful than dealing with the public). I challenge you to plug in lower numbers in this equation as well – let’s say you only want to make $20,000 per year – I’ll touch on that at the end. Although don’t forget, life happens, and you may find yourself in a pinch one day to where you may actually need an income to support your family on your own…. which begs to go back to – what do you value your time away from family at? One customer takes you away from your family for 10 or more hours. Is that only worth $250 to you? Not to me personally…. but to each his own.
5. Back to what do you price? I personally like to work by worst case scenario so I figure at the very least, I know I will have 2 clients per week, even during slow time, so that means I would want to guarantee two sales per week at $1,164. So therefore I would price my work so that every client would spend at LEAST $1,164 which means my lowest print package should be $1,164 (or $682 if going to take on 4 clients per week).
Personally, this is just my opinion, but I don’t think a business owner should be making less than $50,000, but that’s just me. You should network with some other local BUSINESS OWNERS (not photogs, but business owners) and see what they are making. Want to work with lower figures? “Oh I just want to do this part time for fun… $20,000 is plenty for me to have part time…”
Okay, let’s work with lower numbers.
Goal: $20,000 Add 35% to that for taxes equals $27,000
Expenses: Add all your expenses up – I’ll be nice and pretend you aren’t spending on all those group buys, trendy items, and you don’t have any SUPER expensive equipment, so let’s say your expenses are $15,000 per year (do you REALLY think that is high? I don’t – not at all – see above list and I challenge you to REALLY evaluate what you are spending every year – most photogs are spending at LEAST $20,000 per year in expenses if not much much more. So $27,000 plus $15,000 equals $42,000
So for you to make $20,000 per year, you need to have sales of at least $42,000
$42,000 divided by 48 weeks per year of steady work equals $875/week in sales without cost of goods sold factored in. You need $1075 (including COGS) per week in sales to have an income of $20,000 per year – so if you are only taking 2 clients per week, you need sales of around $640 for each client. Just keep that in mind… 
Also keep in mind, if you are taking on 4 clients per week so that your sales need to be much less HOWEVER when taking on FOUR clients per week – you are working 40 hours per week – that’s FULL TIME for $20,000 per year… umm… That means that you are working a full time job for $10/hour – your time away from your kids is valued at $10/hour? You are missing 40 hours per week of your kids’ lives for $10/hour as a BUSINESS OWNER. Makes you think, doesn’t it?
I just challenge all new business owners to really look at their figures and use these simple concrete ways to project your income, to define your income, to price yourself out, and actually structure your business as a real business, and operate as a business owner who knows basic business management 101 now. Work your business proactively with good reasoning behind it. Remember, IF WE DON’T VALUE THIS INDUSTRY, NO ONE WILL.
Thank you to the incredible portrait photographer Jodie Otte of Black Horse Studio for this thought provoking answer to the question: “How should I price my photography?”
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Thank you so much. I am in the process of starting my business and am overwhelmed with the business part of it. So much to do. Pricing is one of my thorns. This article straightened me out a great bit. The most important thing to me I read was keeping emotions out of it. I am a bit nervous. What if they don’t like the pictures, what if none of them come out, am I really good enough (all my friends and family agree I am, but of course, I think they are prejudice). As you mentioned in your article, my husband is the bread winner so I can afford to take the time to build my business. I think I will get my photographs out and really look at how good they are. I can do this!! I’ve make a commitment to carry it through. I think I will make another commitment to absolutely value my talent and time, then price accordingly.
Thank you again for the helpful input.
Any Professional photographer willing to settle for less than $250k a year just don’t want to work. There are easy way to make that kind of money charging REASONABLE prices. How about wedding 8×10′s at $9.95, but what about the digital memory book and the video. Do 2 weddings a week and only average $1500 per wedding and that alone is $156k per year. Add in Custom Framing, Portraits, AND ABSOLUTELY NO SITTING CHARGE, 2 – passport photos for $1.00 and I will teach you how to make at least $350k per year.
Teach me how to work my photography business please!
Please help me, I am starting my business as a wedding photographer. I want to jump to the next level.
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Your logic is flawed because you start your pricing guide with “if you want to make $60,000 a year” and “If you want 2 clients a week” as if those things are under your control. I want to make a $200,000 a year and have 1 client per week. Does that mean I can charge $3,840 for each shoot?
Charging $200 works for me because I don’t have the overhead you have and for a 2 hour shoot and 2 hour post processing, I still make $50/hour that pays for my hobby. The best part is I take better pictures than most of you guys and take business away from you AND I have my day job.
You want to blame someone for losing business to us, blame yourself for picking a career that requires skills that anybody who can read a book and go out and shoot can pick up. Being a plumber, electrician, doctor, or other professions requires a license. Even a monkey with a camera can take a decent picture here or there.
Actually, yes anyone who can read a book can take decent pictures. Your logic is flawed on one point, its not about taking good pictures its about taking great pictures. That is where the art comes into it.
I disagree Bobby with your comment. How I don’t completely agree with this article and it’s author, I do agree that our work is valuable, much more so than someone with a snap camera. My work is worth more, my time, my trouble and the outcome is envied by most. If your work is good and above standard in quality and beauty, people are willing to pay your worth. The fly by night kitchen housewife photographers won’t last, so they price their work to make grocery money, let them be, who cares? If someone won’t pay me what my work is worth so they get less quality from housewife photographer and pay less…it’s their loss because years down the road they’ll wish those moments and memories won’t be near as nice to look at as if they’d paid a few extra dollars for something I could have given them.
I mis-wrote something in my comment above…meant to say that years down the road they’ll look at those photos and wish they’d spent more to have someone like me take them!…lol….sorry about that.
I want to add that I do appreciate the information you offered here. You took a LOT of time obviously to share information you have and to hopefully help those that can’t afford to pay for the information. Even though I don’t completely agree with “every” detail you suggested, I do agree with the majority of it and feel you are very intelligent and I appreciate your time and trouble here!….=)
I shared some senior pics I took last month, the girl above by the old windows and the guy in this comment box….hope you enjoy them =).
Your article should be required reading for anyone considering professional photography. Those balancing another job and family time will realize that they are working for below their regular wage, actually working overtime for under-time wage.
Maybe I would take what this writer had to say more seriously if they didn’t come off like a huge BITCH. I certainly wouldn’t hire them. Tone down the attitude for your next article, and maybe I’ll read uit.
This is a completely inappropriate comment. The article is well writen and gives a general understand on how to figure price… If you disagree, then simply state that or what you disagree with. If you are not a professional photog or plan on becoming one, you should find something better to do with your time. As she said, “To each is own.”
Wow you answered every question I had like you were reading my mind. Very well written. Thank you for posting it free of charge!!!lol
Hi my husband and I oped a Studio a1 year ago and we are doing our taxes by our selfs. We don’t know the difference between supplies and office expensive. Where can we find ? Also we never marked down the milage for our cars. How do we calculate now? Thank you!
You are kind of out of luck on the mileage. The IRS requires pretty extensive records if you are to be audited. The only suggestion might be to log your on location shoots which and mileage to a store in which you have a receipt. The best method is to keep a log in each car. A simple calendar will work and write the starting and ending mileage and where you went. Total it up at the end of the year and keep that notebook for records. There are also several ways to write of this mileage. Either by % of total miles used on the car or # of total miles x the IRS amount. And as I read it, supplies, office equipment, camera equipment are all the same – an expense and can be written off as just that. Although, for some of your more expensive equipment you can choose to use amortization over the life of the equipment. Seeing as how you guys seem a little lost in tax department, it might be wise to hire an accountant. You will be sure your refund is filed correctly and probably get back more than you will on your own. And if the IRS comes knocking, which it does frequently with photog business, you will be much better off having someone else do your taxes. At least until you understand it better. Hope that helps!
http://loopholelewy.com/loopholelewy/01-tax-basics-for-startups/sole-proprietorship-01-what-is.htm
It tells you 2 options for using car in your deductions for business!
What is the stupidest thing you’ve done because someone dared you to?
href=”http://www.mcpactions.com/”> Ok, this is my first time to blog here…So, here it goes! I have entered the contest, and would really benefit having the IPAD, as my husband is a Dissabled Army Vet, and I am at the hospital or clinic with him at least once a week. The IPAD would allow me to work on my art/craft, where ever I may be!
I am in the process of seriously starting my business. I am in the later stages of photography school at a local community college but I believe my images are great even though I haven’t finished school yet. I haven’t decided if I will be renting a space yet or operating as a home based business. Your article really helped me. It was chock full of info and believe me I took notes and bookmarked it. I appreciate you taking the time to write it. This is more than a hobby for me and I intend to make a good living doing it. I am also signed up for a photography business class in the fall. Thanks again!!!
this just gave me a wake up call.
Thanks so much for such a good break down of the business side of things. Pricing is hard. Especially for newbies. It’s so easy to fool yourself into thinking you’re doing okay and forget all the expenses and extra time you invest outside of what a client is paying you for.
Many thanks for the article.
I agree with the article. The problem is, is that how do you get two clients per week, especially ones willing to pay that in an over saturated market?
I am a trained photographer, 10 years experience, and also shoot for magazines. I have moved AWAY from portraits for the mere reason that the ‘SamsClub Photo Kit club’ has priced me out of the running. I can try to explain to someone that I’ve just spent 5 hours editing their images after a 2 hour shoot with high end equipment and business insurance and licenses, and show them a portfolio that is miles above the rest, but honestly, People don’t want great anymore…they want ‘good enough’ at a cheap price. For instance, my latest competitor who stole a very lucrative client from me, charges $35.00 for a 1 hour session with a full disc of retouched images… WHAT?!?!?! I have been too afraid for too many years to state my worth, but by Gosh, I will NOT be settling to compete with these hack jobs. Oh, and I’m not even CLOSE to charging $1000 for a print package… Nope mine start out at $250 and I STILL cannot compete. Ridiculous.
I agree! I tell my people, if they want less go to JC Pennys. I’m moving more towards Seniors and Wedding Photography. I feel those are 2 areas in life people are willing to pay for the high quality I offer!
[...] to auctions or something of the like to soothe that desire. Here’s a great article on pricing by Jodie at MCP Actions….“Their photos are so much better than mine!”It’s true – there are many, MANY talented [...]
Thank you for taking the time to outline this info. Some common sense, and some great “wake up call” items. And for Marianne who said you came off with attitude, I think she may have been hearing herself think while reading this great, free information. You didn’t come off that way at all. She, on the other hand….
While I think no one should under price their work, Charging $600 for 1 8×10 and 2 5×7 after 1 hour photo session shooting at least 10 different poses is ridiculous. There should be a balance
I’m so glad I stumbled upon this, it really made me think. I just started my own photography business and I always struggled with what to price. Starting high is a good choice so you don’t have to raise your prices on people. Thank you for posting this.
_Derek
I just have to tell you THANK YOU! So much for your incredible advice. I’ve been a hair stylist/airbrush makeup artist for over 35 years and now have decided after working for photographers, I can do it to. I’ve come quite a long way, learning photoshop techniques and lightroom3. My skill with the camera are improving everyday. I have been frustrated about how to price out my work without giving it away. So when I saw your site, it just makes sense and I thank you for how you’ve designed the blueprint for the inventory of expenses to everything. I will be visiting again time and time again, sincerely thank you again, Craig Adler
I agree and disagree with some points this photographer makes. Charging for your work is based on the area you live and competition, as well. If you price too high, you lose money or too little and you lose more money/time. Some money is better than none, but what to sacrifice? Create a pros and cons list about your work and fees. Compare with others and then make a decision. I find it hard to believe with this economy a freelance photographer could make anywhere close to what she has stated. A full time studio,perhaps but you have all the extra costs that go along with it. Many photographers that I know work from their home studio or only on location. Competition is high for the best picture and price. The comment to leave emotions out of it cracks me up. It makes me think of this famous quote, “NOT PERSONAL! That is my WORK, my SWEAT, and MY TIME AWAY FROM MY KIDS! IF THAT IS NOT PERSONAL, I DON’T KNOW WHAT IS!” Erin Brockovich:
This article was both scary and enlightning for me… While going through my PB stage, I charged 50.00 per hour. I’ve sense grown tremendously, and have more than enough to show people on all subjects. Now, I’m getting some comebacks, and I cringe to tell them I’ve increased my prices even though I made it very clear to them before that I will increase them after my newbie stage… I’ve completely gone through my savings (money that was given to me after my fathers death) and 95% of it was simply to get business started… New equipment, computer, software, studio lighting, backdrops, lenses, packaging materials ect… Now I’m lucky if I get 2 clients a month…. I love how people swoon at my photo’s but can never commit to a date when I ask when they’d like to do their own… At a meezly 100.00 per hour for the session, but countless hours sorting, uploading, editing, and burning… I’ve spent almost every penny I have, and am so tempted to charge 20.00 per session to get SOMETHING in my pocket….
I stuggle here too. I have found Senior pictures and weddings people are willing to pay for so I am moving there!!! But I will say where this article is wrong is that every market has its own Market Clearing price. Mine, here in Memphis is much lower than say Dallas where people generally have more money. YOu have to figure that out to find your price!
One word — MARKETING! We are photographers, artists, office managers etc. etc. but we are nothing but a secret if we don’t market! Now you have learned the photography skills you need marketing skills! I have had my portrait business for 17 years, I consider it a success. I’ve been through all of the changes in the past decade — some good and some bad. I have learned to keep it fresh, keep evolving, keep competing…you have to stay on your toes all the time…I market constantly. I feel I have a good product, I am high end in my pricing but my success is due to marketing! It’s easy for me because I am passionate about what I do.
This was a fabulous article. It may not be exact for your business or location, the numbers were good examples, the message is clear.
It is in reality a nice and helpful piece of info. I?m happy that you shared this helpful information with us. Please stay us up to date like this. Thanks for sharing.
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These are great ideas and tips. Thank you very much for sharing.
From what I’ve read, there is a lot of good information for up and coming photographers like myself, but for those complaining and bickering about the small stuff and think you’r better than everyone else. I just want you to step out side of your box and realize there are bigger things going on in the world than you. I’ve just spent over a year in Afghanistan working with the Military and talk about an eye opener. People need to realize how good they have it and no matter what they do in life, understand that it is not worth doing unless you enjoy doing it. So what ever you may price your work at always remember every day is special so live to make yourself happy as well as your client and you’ll never have any issue with wealth.
Great article. I will say the one thing you did leave out is market clearing price (the top price in which your market will tolerate before you start loosing business), which significantly flaws your argument. Every market will handle a different price. Yes I can say I want to charge $500 for a sitting fee all day long, but here in Memphis times are tough and getting harder. I have to charge way less than if I were to live in Dallas with a much more affluent population. Yes, I agree that I need to value my time and set my prices to make a profit, but in an area in which I live and there is a low market clearing price, I need to watch my expenses and make myself more efficient in order to turn a profit rather than just raise prices and find myself out of work all together!
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How can I view the other comments?
Does it always has to be Right or Wrong, is there a way people can get some education in regards to tolerance? The fact that any of you disagree is just a difference on opinion not you nor the author is right but we have to respect the fact that the author took the time to write this article and it may give many of us the lead on how to deal with this. Now for you Mr.. 250k, if you were doing that amount of money you would not be wasting your time with us in this forum and with the 350K give me a break there are more divorces than weddings now a day. Let’s give an applause to Jodi Friedman for the nice article and let’s think each of use how to use that information properly.. Now if you want to say how to do it, go ahead take the time and effort to make an article like this one and don’t be the minus factor where we have people trying to bring pluses!
Have a nice day!
This is great! Thank you for sharing. I forwarded it to 3 former assistants/interns who are starting out in the field, and I think it will help them a lot. Thanks for making it so easy to understand!
This is all true and not many teach it. The best place to learn this is at the Texas School of Photography in April. In a class taught by ANN MONTEITH. Remember that name, she knows how to teach this and teaches it around the country as well. the website for Texas School (people come from all over the US and the World for that matter! Including Italy, England and Australia!) http://www.Tppa.org Its so important. I know several photographers who got overly eager and didnt follow this and bankrupted their families and wound up divorced. Its easy to do, and once your prices are low, its hard to get them up. Price for Profit from the start or start now to keep from being in that 95% that fail.
Thank you for this article, it was just what I needed! Remember the scene in “Moonstruck” where Cher slaps Nicolas Cage and yells, “Snap out of it!”? I think this was the “snap out of it” that I have been needing when it comes to figuring out my pricing and taking the emotion out of it. I think I can now sit down and write out my prices and feel confident that I am charging a fair price for my vision. Thanks again!
Amen! Thanks for sharing!
This was great! I live in a small community and put way too much emotion in my pricing. Now a year later and I am kicking myself big time! I am going to have to navigate the tricky price change; if I don’t all my work is for not. “sigh”
Sound advice- thank you.