![]() ![]() Many photographers make this mistake and don’t factor in the real costs of a product. If we’re using an 8×10 print as our example product here, the cost of goods does not mean just the cost of the print from your lab. Before we go too deep into the mechanics here, I’d like to explore the concept of cost-of-goods for a minute. While there are five influencing factors on pricing (above), it’s clear to see that the only real measurable way to establish your pricing is by using the fifth factor, which takes into account your cost of goods. You need to be realistically priced for your area otherwise you’ll price yourself completely out of the local market. For example, just because an established photographer from Southern California tells you in a workshop that he charges $165 for an 8×10 print doesn’t mean that you should, too. There are so many great educational resources available to us as photographers, but you must be realistic and relevant to your local market when making business decisions. While we’re on the topic of relevancy, creating a pricing structure that your local market will bear is important. The 5 influencing factors on pricing are quality, perceived value, confidence, competition and COGS. You don’t want to be so far off the line that you are looked at as being unrealistic. Of course, it wouldn’t be smart to copy your competition’s pricing, but I feel it’s important to at least be aware of what your local market will bear and keep that in the back of your head as you establish your own price structure. The fourth influencing factor on pricing ( competition) is an important one to note. At best, it gives you a self-focused approach to pricing, which says “This is what I think I’m worth”, but that isn’t enough. You can offer the best quality, present your work beautifully and be entirely confident in your ability, but all this doesn’t help you come up with a price. When looking at these very basic factors, the first three ( quality, perceived value, confidence) are all intangibles and therefore slightly subjective. What your competitors are charging and what the market will bear.How confident you are as a photographer. ![]()
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