Something about the rates and the way photographer see it...

[edutilos-]

The answer is simple - Game Theory.

Like Hart points out, this is one business model of high-volume low profit. The consistent trouble with economics is that it assumes uniformity too often and that people are entirely rational creatures driven by cost and quality and quantity. In reality, if you say change the bunch of $100 photographers to $10,000 photographers and target a different market, it may well be the case where Photographer A offering a 10% discount gets less business because the clients at that end of the market may well be indifferent about the $1,000 discount and interpret the discount as a sign that photographer A isn't getting sufficient business for whatever reason and shy away from engaging his services.

Of course, I think the mix is pretty even. The people obsessed with costs (many of them out there) will naturally go for $100 photographers so your example probably gives a fairly accurate representation of the actual situation for that segment of the market. I sweat for the $100 photographers who are doing it full-time and don't have a way to raise their prices over the years though, because you would be stuck in a vicious cycle where you just keep working non-stop for low-value jobs. At 20+ years of age shooting events back to back on a daily basis is probably easy, how about 40 and beyond?

And from the other side of the fence as well, I'm sure we're aware that there are photographers who are charging way more than what their quality of work usually commands. That's because clients in the photography market aren't all about the images sometimes, but also "branding", "word of mouth", "how good this guy makes me feel", "he's more handsome" etc... Willing seller, willing buyer, that's life.

 

[Agetan]

Like Hart points out, this is one business model of high-volume low profit. The consistent trouble with economics is that it assumes uniformity too often and that people are entirely rational creatures driven by cost and quality and quantity. In reality, if you say change the bunch of $100 photographers to $10,000 photographers and target a different market, it may well be the case where Photographer A offering a 10% discount gets less business because the clients at that end of the market may well be indifferent about the $1,000 discount and interpret the discount as a sign that photographer A isn't getting sufficient business for whatever reason and shy away from engaging his services.

Of course, I think the mix is pretty even. The people obsessed with costs (many of them out there) will naturally go for $100 photographers so your example probably gives a fairly accurate representation of the actual situation for that segment of the market. I sweat for the $100 photographers who are doing it full-time and don't have a way to raise their prices over the years though, because you would be stuck in a vicious cycle where you just keep working non-stop for low-value jobs. At 20+ years of age shooting events back to back on a daily basis is probably easy, how about 40 and beyond?

And from the other side of the fence as well, I'm sure we're aware that there are photographers who are charging way more than what their quality of work usually commands. That's because clients in the photography market aren't all about the images sometimes, but also "branding", "word of mouth", "how good this guy makes me feel", "he's more handsome" etc... Willing seller, willing buyer, that's life.

This is quite true. It is not always about how the final image looks like and it is not all about the best material use but there are more to charging more then better quality image.

The different though is the clientele and how they sell their "perceived value".

Regards,

Hart

 

[mrleech]

This is quite true. It is not always about how the final image looks like and it is not all about the best material use but there are more to charging more then better quality image.

The different though is the clientele and how they sell their "perceived value".

Regards,

Hart

This is very true. In the market of same products (laptops/mobile phones/etc of the same model), it is sometimes down to the price. Yet, it is possible that customers would still buy from someone they prefer regardless of the price. Non-tangible aspects like response, customer service, reputation of the company, etc do play a part as well.

For products and solutions like photography, it is harder to differentiate just based on pictures. The sharpest image may not equate to the picture that customer wants. As Hart puts it, the clientele or your intended clientele must buy into your value. If they are not confident of your skills, even if free they may not want. Would you get someone who offer you free wedding photography coverage if you are not even confident they can hit 10% of your expectations?

 

[surrephoto]

It's all about balance.

Balancing your pricing with your actual value, both determined by yourself & your customers.

No man is an island.

There are small players & big players in every market.

There will always be those who value reputation over survivability & vice versa. Not everyone is a genius in marketing and some can't be bothered.

Work within your capabilities & learn & expand through time & occasional disaster. Do not take quantum leaps unless you are financially secure, normally I would choose the staircase.

 

[Agetan]

It's all about balance.

Balancing your pricing with your actual value, both determined by yourself & your customers.

No man is an island.

There are small players & big players in every market.

There will always be those who value reputation over survivability & vice versa. Not everyone is a genius in marketing and some can't be bothered.

Work within your capabilities & learn & expand through time & occasional disaster. Do not take quantum leaps unless you are financially secure, normally I would choose the staircase.

Reputation and Survivability goes hand in hand though...

If one is not good with marketing... hire someone to help...
If one is not good with accounting... hire someone to help...

Help is out there, sometimes it is cheaper to pay to get help rather then spend all the time and yet still doesn't solve the issue. A good course in different discipline is worthwhile to pursue as you will learn new thing. I still pay to go to Newborn photography course myself and you do learn a thing or two even I thought I know a lot about newborn photography. The trick is not to go and copy, but to understand to make things better.

Regards,

Hart

 

[catchlights]

the best thing you can do is to join the trade associations, there are many things to learn which you won't able to find it outside, it is meant for the photographers in the industry.