Setting Your Rates
Oh, hello there my fellow creatives! Are you tired of feeling like you’re not making enough money for your amazing work? Well, fear not! Your favorite tell-it-like-it-is business coach is here to give you some tips on for setting your rate and pricing your creative services.
First things first, let’s talk about the cost of doing business. I know, I know, it’s not the most exciting topic, but trust me, it’s crucial. You need to know how much it costs you to create your masterpieces, and then factor in things like taxes, equipment, and insurance. Setting your rates isn’t something that you can just take a guess at. Once you have a clear understanding of your expenses, you can start setting your rates accordingly. It is worth saying that this should be number one thing you do before setting your prices as a photographer but there are other really amazing reasons to know your CODB:
Enables you to make informed decisions:
Knowing your cost of doing business means you can make informed decisions about your business. For example, if you’re considering purchasing new equipment, you’ll be able to determine if you can afford it and if it’s a wise investment for your business.
Helps you identify areas to cut costs:
By knowing your cost of doing business, you’ll be able to identify areas where you can cut costs. This can help you increase your profits and make your business more sustainable in the long run.
Improves your negotiation skills:
When you know your cost of doing business, you’ll be able to negotiate with clients more effectively. You’ll know exactly how much you need to charge to make a profit, and you’ll be able to explain your pricing to clients with confidence.
How to Calculate Your Cost of Doing Business as a Photographer:
- Start by making a list of all your business expenses. This might include equipment, software, insurance, marketing costs, travel expenses, and more.
- Once you have a list of all your expenses, add them up. This will give you your total cost of doing business.
- Next, determine how many shoots or projects you’ll be doing each year. This will help you determine how much you need to charge per shoot to cover your expenses and make a profit.
- Divide your total cost of doing business by the number of shoots you’ll be doing each year. This will give you the minimum amount you need to charge per shoot to break even.
- Finally, add in a profit margin. This will give you your final pricing. Remember, you’re running a business, so you need to make a profit to sustain your business over the long term.
- Voila, you are setting your rate!
Now, let’s talk about deposits. We all love money, right? So, why not make sure we’re getting paid on time by collecting deposits? Not only does this keep cash flowing, but it also shows your clients that you mean business. There are a lot of different payment plan options so choose which one best works for you and your company. We take 50% of the total payment up front with the remainder of balance due prior to the event. We use Honeybook and Smart files so it’s a smooth process for both us and our clients. No more chasing after payments, hallelujah!
Friends and family discounts, do you offer them? It’s a tricky situation, isn’t it? On one hand, you want to support your loved ones, but on the other hand, you don’t want to undervalue your work. My advice? Be strategic. Decide what type of discount you’re comfortable with, and stick to it across the board, And hey, if they don’t want to pay full price, don’t sweat about it. This doesn’t mean they aren’t great friends or don’t love your work- it just means they aren’t your ideal clients and it’s ok.
Speaking of clients, it’s important to do some market research. See what your competitors are charging, and adjust your rates accordingly. Remember, you’re worth every penny, so don’t be afraid to charge what you’re worth. And while you’re at it, network and chat with others in your area. You never know who might need your services, or who might refer you to someone who does.
So, there you have it, folks. The art of setting your rates for creative services. Don’t be afraid to take control of your finances and set your rates with confidence. And who knows, with these tips, you might just be the next millionaire creative superstar. Now go out there and make that money, honey!
Bonus Tips for Setting Your Rates
- Gallery Expiration Dates: As you mentioned, setting gallery expiration dates is a great way to create urgency for your clients to download their images within a certain time frame. Not only does this encourage them to make a decision quickly, but it also helps you avoid having to store their images for an extended period of time. Additionally, it’s a good idea to have clear communication with your clients about the expiration dates and what will happen if they don’t download their images in time. This will help ensure that your clients are aware of the timeline and understand the importance of downloading their images promptly.
- Show Starting Prices Online: It’s important to be transparent about your pricing, and one way to do this is by displaying your starting prices online. This can help avoid wasting your time and a potential client’s time by nurturing someone who may not be able to afford your services. By displaying your starting prices, you can attract clients who are a good fit for your business and avoid any potential misunderstandings or surprises later on. Additionally, including a pricing guide on your website can help educate potential clients about what they can expect to pay for your services and can also help establish your expertise in the industry.
Want more advice like this? Join me in the Powerstart, my group coaching program that will not only help you road map your business and get super clear but walk you through how to implement it.