> After doing research on here regarding prices I started a
> spreadsheet of expenses and how that should translate into prices.
> Here is what I came up with for prices:
>
> Matted 8x10: $15
> Matted 12x16: $25
> Matted 16x20: $40
> Matted 8x16 Pano: $25
>
> Framed 8x10: $45
> Framed 12x16: $80
> Framed 16x20: $125
> Framed 10x22 Pano: $150
>
> Does anything look out of whack? These prices are roughly 3x costs
> except for the framed 8x10 (I can't see charging $50 for one) and
> for the Framed 10x22 (custom frame and glass got pretty pricey, but
> cannot see charging $175). The show types we are looking at doing
> are along the level of small city art festivals with a few smaller
> school art and craft shows mixed in.
>
You've got the right idea, to analyze your costs and base your pricing
on all of the factors going into the finished product. However, these
prices seem low to me, especially for the framed work. Why do you say
you can't charge $50 for an 8x10? There's not a significant difference
between $45 and $50. For the smaller shows that you're considering,
these prices may work for volume sales, but you're going to find it
hard to break out of the small town show environment and still show a
profit.
When you price your work, you should try to take into consideration
all of the factors that go into making the work and marketing it, not
just your cost of materials. A friend of mine once pointed out that
certain prices seem to deter people from buying -- figures ending in
zero are one example. He prices all his work to end in $x7 or $x2.
To break it down, each of your product offerings should support not
only its own cost of goods, but also your fixed costs for:
- Photographic equipment, including cameras, lenses, lights, tripod,
etc.
- Computer equipment and software
- Travel costs, whether you drive or fly; hotel and food while on
location, if you are a location photographer
- Display costs, including the cost of your canopy, walls, bins and
other show fixtures
- Expendables, such as duct tape, business cards, invoice forms,
office supplies
- Transportation costs, including your vehicle, its maintenance, and
any other means of getting your product to market
- Show entry and booth fees
- Marketing costs, such as postcards, brochures, mailings
- Fixed costs for your studio space, whether it's a small spot in your
home, or a big industrial space, including rent, utilities,
communication costs (phone, internet)
- Your labor! -- What does it take to make your work, print it, mat
and frame it, do the applications, travel to shows, sell the work, do
the marketing, come up with new ideas? Most artists seriously
undervalue their time. I know I do -- for me it's a full-time job, and
I joke about making 40 cents an hour. You have to factor in paying
yourself, after everything else is paid.
- A profit factor -- build in a percentage that can be reinvested
after everything else is paid. This funds expansion and future
unforeseen costs.
One intangible that you won't necessarily see when you research
pricing on web sites is how the work actually looks on the wall. If
you are adding value to your work by using high end materials, such as
fine art paper, archival matting, & better glass in the frames, for
example, your prices need to reflect your costs of doing so. On the
other hand, it's hard to talk about bargain frames and inexpensive
mats in anything but a bargain tone of voice. As an OP pointed out,
you need to decide if you are Walmart or Tiffany's, or somewhere in
between.
Some of your costs will remain pretty fixed, others will fluctuate as
you grow your business. It's also very difficult to determine how much
to add to the cost of each print to cover your fixed overhead costs.
If you plan to make 100 of two images, and one sells better than the
other, the one that sells will carry the costs for the one that
doesn't. But including a factor for fixed costs, as well as future
costs (camera repair, new printer, new software) will help you grow in
the long run.
Keep in mind if you want to advance from smaller shows to larger
shows, the cost of participating in the larger shows will increase.
From traveling longer distances, to higher booth fees, the majors
will require you to up your game -- better images, better printing,
better matting and framing, better booth presentation, higher sales.
Keep in mind that it's always harder to raise your prices than to
lower them. You can usually have a temporary price reduction with a
promotional event, but it's hard to have a temporary price increase!
Low prices will attract bargain hunters, but may not build repeat
business over time. That said, however, photography relies on numbers
to generate income, especially at the lower price points. For every
1,000 people at a show, you may have only 5 or 10 sales. You can only
get so many people in your booth at one time. If those sales are $15
or $20, you may not see much profit. If most of your prices are
clustered below $50 your average transaction will also fall into that
range. You might consider offering one or two of your best images at a
higher price point, with better framing and presentation, as an
attractant, and to see if your selling environments can support it.
While the lower priced work tends to be the bread and butter for many
photographers, it's the higher priced work that provides the profits
in the long run.
Good luck!
Jim Parker
parkerparker :: design | photography
http://www.parkerparker.info
@dakkid / twitter
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