How To Put A Price On Your Photography
by William Lulow
Putting a price on your photographic services has always been a challenge, because for most of us, what we do is also what we love. The best advice I’ve come up with is first to do some homework. You need to take a look at the kind of photography you do and examine carefully, how good you think you are at your job. If you’ve been working in photography for a while, if you’ve been an assistant in a busy studio and seen first-hand, how the business is run, if you’ve had a number of repeat clients (people who have come back to your studio for more than just a couple of assignments), if you are supremely confident about your ability to make photographs that have sold products or been used in magazines, newspapers, brochures and on the web, then you should be at the higher end of the pricing scale. Maybe not the top, but up there! If you have a busy studio in which you are shooting several times per week and at good day rates ($1,500 and up), then you have a good business. If you keep getting referrals for new business, if you are continually booking new shoots on a regular basis, then your prices should reflect your business.
If you are booked at least two full days of shooting each week, (translates into about $3,000 per week or roughly a $120,000 yearly gross, based on 40 weeks a year of work, not including extras), that’s probably not enough to pay for rent, staff and living expenses in New York City, but it might just be enough in a smaller market. On the other hand, if you are booked five days each week (for a commercial studio shooting ads and catalogs), that will translate to a $300,000 yearly gross. That might be enough to own and operate a photographic studio in New York City. My experience has been though, that the five-day-per-week shooting schedule is not the norm at those prices. Also, don’t forget that even with a $300K-a-year business, you might be able to put half of that in your pocket after taxes and expenses. As a note, back in the ’80s and ’90s, studio rent in NYC for a 3,500 sq. ft. loft space was approximately $40,000 a year. Today, the same space is considerably more costly. So, will $150,000 per year support the lifestyle you want? Can you send your kids to college with that income? Will it be enough to pay rent on your studio as well as enable you to live in a decent apartment or house, pay the commuting expenses as well as everything else? That’s something we all have to figure out for ourselves. And don’t forget that most photographers who are sole proprietors (i.e., they are basically one-man/woman operations with assistants hired as needed), are not actually shooting five days per week. That kind of schedule is mostly for large studios that have daily photographic needs. So, 40 booked weeks per year is almost unheard of. There are some highly successful celebrity wedding shooters who maybe book 35 to 40 weddings a year at upwards of $20,000 per wedding. But they are at the top of the list, grossing $800,000 or more. Those indeed, are the celebrity shooters. This means that they are shooting almost every weekend for some very wealthy people. Some large wedding studios with multiple shooters will be booked 52 weekends a year, both Saturday and Sunday, but they won’t command the celebrity rates. And, it is almost impossible for one shooter to keep this kind of schedule. You have to provide yourself with some vacation time and take a rest once in a while to enjoy your family!
So, for the successful wedding photographer who charges say, $4000 to $5000 for a wedding, and who spends at least 20 hours shooting and editing the shots, that translates to $250 per hour, not taking into account expenses. Let’s say that of that $5000, the photographer pays $400 or more, to an assistant (or second shooter), $1000 or so on album cost (not including editing time), and a proof album, this now brings the hourly rate down to below $180 per hour. Now, of that $180, she would have to pay tax, rent on an office or studio, advertising costs as well as website design and maintenance, auto maintenance and purchase, computer purchase, phone bills, electricity costs, workmen’s comp insurance, other insurance as well as buying new equipment and keeping older equipment up to date, etc. (Don’t forget that today’s equipment is far more expensive than it used to be). All this has to be factored in to what you would ultimately charge.
These are just some of the things we need to consider when trying to figure out how to put a price on our artistic work. Another way to figure it might be to decide on how much you would like to pay yourself for your talents and work from there.
If you are just starting out in the photography “game,” you have to take that into account as well. Obviously, you cannot charge what a well-known name can, but you must place a value on your artistic ability. The “well-known name” has achieved that status because they have delivered top quality results over time. Keep in mind that everything photographers do in creating their art has a value. Just because you are starting out, doesn’t mean that you have to work for free. As I said, you need to do your homework. Nowadays, you can find photographers whose work you admire on the internet and try to see what they charge for their services. You’ll need to know what they provide and how they deliver the final product. This may entail getting someone to call them, discuss a possible job and try to get their prices. Some photographers publish their prices on their websites. More often than not, they don’t. This is because they usually need to meet with a prospective client to find out what they are willing to pay and what exactly, the job entails. Most commercial photographers bill on a “day rate plus expenses.” This means a fee for the photographer’s time and expertise, plus extra for transportation, assistants, digital post-processing, uploads and downloads as well as disc burning and delivery. Extra fees might include: stylists, location scouts, additional rental equipment, as well as studio rentals. These items should be detailed on your invoice. If you work for a newspaper or magazine, more often than not, they will tell you what their rates are. You can then “take it or leave it.”
These days, many clients don’t pay what they used to. There is no film, no processing, no tests, no Polaroids. Much of what it used to cost to produce a professional assignment has been eliminated by the digital revolution. So, photographers need to try to figure out what their time is worth based on the items I have detailed above.
You should also do what’s called a “break-even analysis” of your business or proposed business. Find out what it takes, on a daily basis, to keep a studio’s doors open. Then divide by 20 (number of monthly working days, then by 8 to arrive at some sort of hourly rate). This analysis should be done for any business.
I hope you can easily see from this that doing a shot for $50 is not even feasible for a serious photographer/businessman. People who say things like “This shot will only take an hour,” really do not understand what goes into producing a professional quality photograph. They don’t realize that unless you live in their house, it will cost you something just to get to where the shot needs to be done. Even if you go by subway, it’s still going to cost something. So, the $50 is now less transportation costs. Now, in the digital age, you will have to spend some time uploading the images to your computer, then do some manipulation in Photoshop ($700 program) and then email the images or burn them to a disc for this client. So, now you’ve put in say, two hours for that $50, less the transportation cost. We are now down to around $30 that you get to put in your pocket for the two hours. That’s $15 per hour. It’s above the minimum wage, but not by much. And, you still haven’t factored in the cost of your equipment and your learning curve! So, you cannot do a professional shot for $50!
I would say that the minimum fee to charge for any professional image should be $250. This is for one basic shot that should take no more than an hour to shoot. If I do a simple still life (product shot) on white no-seam paper, or a head shot for the social media, I have to:
- Have client send product or travel to pick it up
- Clear a space in the studio
- Set up a table top (if it’s a product)
- Put up the paper background
- Set up all appropriate lights
- Do a series of test shots
- Adjust the product or decorate the set with appropriate props (if called for)
- Download the images to the computer
- Analyze and manipulate the shots as needed in Photoshop & Lightroom
- Size the images for the intended use
- Burn images to a disc or send them to client via FTP or other file transfer program
- Arrange for file transfer or overnight mail
- Make sure the images are acceptable
- Write up an invoice for transmittal
- Wait for the check to arrive. (For this, you often have to be a bank because some clients take more than 30 days to pay. This means that you are, in essence, lending them the money).
So, before you accept those really low-paying jobs, make sure you understand how photographers arrive at their pricing schedules, what’s involved in a top-notch photo shoot and what you have to do to compete in this market.