Last week Sherra posted 3 Steps to Album Design Pricing. This week I thought we would drill down on step #1 since we received a lot of emails asking us for more details on what this means: “Organizing for the specific album – I bill by the half day on this phase no matter whether I’m doing it with them or for them.”
Here are the answers to your most popular questions:
- A half day is up to 4 hours and is scheduled billable time reserved for that specific client. You can choose to do a combination of the work on site or off site depending on client.
- Your half day rate should be your hourly rate x 4. Gasp, I can hear it already – but you said you don’t bill hourly? That is correct, however, you need to know what your monthly income goal is to properly bill for your time.
- There is no magic formula! Typically, organizing for a specific album can be anywhere from 1 to 3 half day sessions but you won’t know until you dig in and start working! Clear communication with your client at each session is vital.
Setting your minimum is a crucial profitability component
Creating a solid pricing structure with a minimum is an important way to meet your income goals. It can help you develop long term client relationships and set expectations from your very first session.
Here’s the bottom line
You need to see the value in your premium services. Few businesses have failed because their prices are too high, however, many have folded because their prices weren’t high enough to cover costs or generate a profit.
Do you have a monthly income goal for your business? Does this help shed some light on why you could shift your business language to a minimum half day versus hourly billing? Stay tuned because this is an important conversation and we want to share more about how to make money in your photo organizing business!
We’re here and listening…so leave your questions and comments below.