Pricing and profitability
Two of my favorite topics to discuss with small business owners!
Do you struggle with how to price your services?
Do you second guess your current pricing structure?
Do you suffer from “sticker shock” and offer discounts because YOU would never pay that much?
We’ve been there! I think every business owner has been there and it is completely normal to have some pricing fears.
It is important to remember, there are plenty of people who will pay and are used to paying for premium services. Photo organizing fits in this premium (or luxury) category and we should present ourselves this way! Your confidence is an important part of your pricing. If you’re not confident that you can deliver premium services, it’s likely that potential clients will sense that.
Album design has 3 important components and I price them separately:
- 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.
- Album Design – I keep track of hours but bill as a design fee and do not attach my hours to the custom quote
- The Album – this is vendor-specific depending on client’s preference and what I’ve shown them. For digital albums, I have a preferred vendor that does not sell direct to consumer and the professional photographer’s formula can be used for photo organizers. They charge 5-7 times the wholesale cost of the album.
Every album is a custom quote because every album has so many variables. There are many ways to charge for premium services like album design which is an excellent income stream for photo organizers.
We’re planning to talk about pricing and profitability a lot here so let’s start now! What is your biggest pricing fear? What is your pricing structure for album design? What is working for you right now? Please do share in the comments below.