if u need 8 AD per mth, then u are in dangerous positions, as there are no money for u to buy, service, repair, upgrade ur equipment, that's including computer etc.
Eat breath LIVERPOOL!!!
And this is where i say many photogs get really confused between cash flow and profitability. they do 8 wedding per month, take home 3.2K and are very happy. But there are "hidden costs" that eats away at your 3.2 k very rapidly to the point where it might go into negative. Like what? Transport, parking, equipment depreciation, insurance, phone bills, emergency funds ie a lawyer to defend you in case your CF card goes bad, reprints if your lab screws up, repairs, website, sample albums, courier charges and the list goes on and on and on.
Then my questions as well is if you're doing 8 weddings a month at $800 each, why not do 4 weddings a month at $1600? Seems logical to me to work less and earn more and have more time to work on the art of the wedding photography. But i guess different strokes for different folks.
Of cos, I would like to charge $3.2K and do 1 wedding a month. But people must be willingly to pay me this amount for what I can produce. Frankly, now I can only command $650-800 per wedding.
As I said, even $3.2 take home pay might not be enough to feed a family. But as a part-time, not too bad.
1.depreciation of computer equipment
2. depreciation of software (of course if one is using pirated software then i have nothing to say)
3. Insurance. Both for yourself and third party liability.
4. Cost of website. both setting up and operating cost (of course you can use flickr but not very pro looking)
5. sample albums
6. equipment repair (not same as depreciation and at 8 weddings a month you're going to need lots of it)
7. cell phone, water, power (unless the business does not need it)
8. professional development (unless one doesn't plan on getting better)
9. Marketing costs (funny thing i actually think part timers need to spend a lot on this because there are so many other part timers around and to be able to shoot 8 weddings a month, I actually think marketing costs will be quite high)
the fact is the list keeps going on and on and on.
And many part time photographers say nah, i don't have these expenses or i'm already having or using it, why account for it? Well, the reason is because if you don't you might be paying to shoot a couple's wedding, which in that case, why not just sit at home and not make a loss instead?
Also many people will ask, what's the big deal about not accounting properly, and as my financial adviser tells me, the importance is simple. Over account for your costs and you'll retire with more money than you anticipated. That can only be a good thing.
Under account for your expenses in a high cash flow low profit business (as is the case for wedding photography) and the time you will find out your mistake is when you retire or when something catastrophic happens to you. The worst time to find out because that's when you need cash the most.
So i'd rather over account than under account for costs.
Thanks for the breakdown.
By the way, how much are you charging per wedding? AD only. It's ok if it is inconvenient to disclose.
I think you got it right that part timer won't care much for the expenditure that you have discussed.
However, I don't quite agree on the part about part timer having to spend more on marketing. Most of us get job thru forum and friends/client. Even for pro like yourself, do you advertise your services in any media like magazine or paper?
To breakeven and have a monthly income of 4K, considering the write down of equipement and software to be 2 years. You probably need 5K inflow per month?
If 1 wedding bring you 1K (considering that you are pro), then 15 wedding will breakeven for you. (using salty accounting theory)
Where did you advertise your services? Did it help after you spend 10K on that?
Sale minus tangible expenditure is gross profit,
gross profit minus fix expenditure is nett profit
tangible expenditure is the expenses that you need to produce the sale (no sale no expenses)
fix expenditure is the expenses that you have no business coming in yet you still have to pay.
an average ballpark percentage for most business is, 30% of the sale is gross profit, 30% of the gross profit is the nett profit.
so you now know that why $650 for a wedding does not make any sense, you spending 24 working hours on a wedding, and customers only paying you 10 hours.
unless you adopt the uncle wedding photographers' business model.
I advertise my services on web, print and various places. I'm quite new in the business and have yet seen the fruits of my marketing efforts, so no. And marketing does not just mean advertising.
Wedding day photography has evolved and changed drastically these few years, and ways of doing things is becoming more varied and sophisticated. Clients are beginning to appreciate the difference, and willing to pay for the difference. However, those who look price tags like 3k or 4k a wedding, and imagine the photographer making 12k a month over and on top of their fixed salary may actually be looking at a fantasy. At least that's the case for me.
Last edited by shinken; 29th August 2008 at 07:32 PM.
Don't forget, you have 8 weddings a month to shoot, means that either you go full time or still work as part time but don't need to sleep, to enable complete and deliver albums for the 8 weddings.
btw, weddings do have season, there will be about 2 and a half months in a year have no weddings to shoot.
I am asking how did you came up with the album is selling around $300?
"Service rate does not include material, the album is selling around $300 (low end rate)
so the chargeable service rate is only $35 per hour, ($650-$300)/10 hours."
Head getting bigger and bigger.. And so far, only a handful actually answer the main question. "How much do you charge?"
For the record, I charge $650-800. Depending on the physical hour I need to be with the couple.
Actually this thread appear before.
I am charging at $180 per hr.
Cost is high, need to increase.
Eat breath LIVERPOOL!!!