Pricing PART IHow to set up a pricing structure for your studio

Who Am I?

• Julia Kelleher, M. Photog., Cr., CPP,AFP-O, AFP-W

• ProSelect Trainer/Educator

• Boutique Studio Owner, Bend OR

• Newborns & Families

What We’ll Cover Today

• The importance of pricing yourself correctly

• How to determine what you need your average sale to be.

• What products should you carry?

• Different price structure styles and what will work for you?

• Creating packages from your chosen products

What We’ll Cover Next WeekPricing In ProSelect PART II

• Where to set up pricing in ProSelect.

• Preliminary set-up for the easiest input (Price List Names,Presentation Options, Print Paper Sizes and Tax Set-Up).

• Entering print prices, layout prices, and frame price groups.

• How to price Books.

• Order Adjustments.

• Print and Layout Extras....what are they?

What We’ll Cover in 2 WeeksPricing In ProSelect PART III

• Review Package Structure Types & How those Fit IntoProSelect.

• Entering & Ordering Packages.

• Using the Shopping Cart.

• Credit Based Pricing.

Pricing

• It’s the bane of any new (or old) photographers existence.

• Scary, overwhelming, time-consuming, insecurity-breedingnuisance!

• Just when you think you have it figured out, something orsomeone comes along to ruin your mind.

Pricing

• Don’t look at other photographers websites

• Don’t under value yourself

• Don’t compare yourself to other businesses

• Don’t wing it!

Evaluate Your Strengths

• Where is your niche?

• What is your brand?

• What type of business model do you want?

• Who is your target demographic?

Evaluate What You Need $$$

• What are your expenses?

• How many sessions do you want to do?

• What income do you want to make?

• How do your foresee your growth?

Now you know what your average sale should be.

• Is it more than you expected?

• Is it eye-opening?

• Can you make adjustments anywhere?

It’s time to evaluate products • Low cost of good with a high “perceived” value.

• Your products should reflect your brand. Don’t try tocarry “everything.”

• The price of each product should reflect a 20% cost ofgood.

• IE: if it costs you $20 to create it, should be priced at $100for your customers. However, this does not take intoaccount “perceived value.”

• “Creating” it means, product hard cost AND your time/costs to edit, design, order, package, deliver.

Creating Packages

There are a few “tried and true” methods for creating packages.

Set Sizes & Set NumberExample: 1-16 x 20, 2- 11 x 14, 5- 8 x 10

Pros: Easy to create.

Easy to understandConsumers are familiar with it

Cons:Substitutions

Not very flexibleConsumer often gets “extra” stuff they don’t want

Create A CollectionA Collection where your client gets to build their own collection using a certain number of steps:1. Choose a Wall Portrait2. Choose an Album3. Your Gift Prints4. Choose Your Digital Files Pros:

Offers ultimate flexibility to consumerThey get what they want and need.

No price ceiling. Easy to adjust and change on the fly.

Cons:Can be difficult to understand.

No price ceiling.No clear “price point” to the consumer.

Collections w/o Set SizesA“big ticket” item with a certain number of gift prints. 1­20 x 24 Wall Portrait12­Gift Prints $1200

Pros: Offers some flexibility to consumer

Easy to see “price points.”Easy to understand.

Cons:Has an upper end limit.

Substitutions.Client often gets more than they want.

Collections w/o Set SizesA“big ticket” item with a certain $$ print credit.

1­Session Album$500 print credit

$1200Pros:

Offers more flexibility to consumerEasy to see “price points.”

Easy to understand.

Cons:Has an upper end limit.

Substitutions.Client often gets more than they want.

Collections As A One Time DiscountClients purchase items A La Carte and then receive a percentage discount if they complete the order on the DAY OF the ordering appointment.

A La Carte + 20% off.Pros:

Offers ultimate flexibility to consumerEasy to see “price points.”

Easy to understand.

Cons:Hard to control your $$ average.

Discount implies “cheap.”Implies pressure to purchase NOW.

The ? of Digital Files It depends on your business model, your brand and your target market.

PROS:•Cheap & Easy to Produce.•In Demand.•High “perceived value.”

TO SELL OR NOT TO SELL?

CONS:•Digital Files Are Transitory.•Easily corruptible.•Client may not print or may print withlow quality.•Easy to alter.•No control.•Lost opportunity cost is high.

ABOVE ALL IT”S VITAL TO CHARGE APPROPRIATELY

Strategize Your Pricing

PACKAGESThey must provide incentive for the client to want

to move up.

Your lowest package should have NO value, and should be priced at the absolute MINIMUM avg. sale you want.

Each package should have more value to it as the client spends more.

The middle package is where MOST consumers will buy and should be priced at the avg. sale your really WANT.

The top package should be your “WHOPPER....” The one no one ever buys.

Using IncentivesIncentives can encourage clients in a lot of ways.

Purchase a portrait collection and receive a free gift.Spend $XX amount and your next session fee is only $XX.Purchase a 20” or larger canvas and any album is 20% off.

Purchase a newborn collection and entrance to the baby plan is only $XX.Spend $XX and your ordered digital files are included at only $XX.

Our Pricing ModelAnd Why It Works For Us

Create Your Own Collection

We have found this method to be the most flexible for our clients.

It’s basically A La Carte with “Rules.”

Limited Edition SessionsTap Into A Different Market

We have a second product line that is an on-going LE. This pricing targets the lower socio- economic client in my community. It offers them custom portraits at a reduced rate.

20 minute session. One BG. One Outfit. 10-12 proofs. Gift print packages only. No A La Carte. No Custom Art. The two BRANDS are VERY DIFFERENT!!!

We have found this to be incredibly successful in building our business in a new city as these folks spread WOM!