One of the topics that we get asked most about (and I mean most by a long shot) relates to how folks should price themselves in their photography business. With the economy behaving like it is, there’s an authentic felt need for photographers to “get everything together” in order to book clients, make ends meet, and become profitable.

But it’s hard to find solid advice in a one-size-fits-all sort of way because everybody is so different and every photographer operates a different business – different goals, different struggles, different dreams.

So instead of spending time today talking about percentages, costs, and markups, I thought it would be helpful to instead talk about the “whys” behind pricing, and then leave you with some links to some of the “hows” as far as numbers go. Sound good?

Note: this is going to be a bit of a long post – but that’s because there’s a lot to talk about. So grab your coffee, sit back, and settle in.

It’s Not About the Numbers

When it comes to pricing, the first thing people tend to look at are the numbers, which I think is a mistake. Because the markets have dramatically changed in recent years, we’ve become largely focused on dollars and cents, trying to stay afloat in the economic climate. But in reality we should be focusing on something completely different. We need to be focusing on providing value in exchange for dollars.

So the real discussion on pricing isn’t about the numbers – it’s about creating value that EXCEEDS the numbers. So before I launch into concrete pricing models, I’m going to talk about three areas of your business in which you should be creating value that exceeds your pricing: (1) in the images you take, (2) in the service you provide, and (3) in the experience you create.

1. The Images You Take

Sure, you could build a gigantic marketing machine of a business and let your images fall by the wayside, but that’s not good for you, your clients, and the industry as a whole. So the first place that value needs to be created in your business is in your images. Your photography has to be quality work, and beyond being high quality, you have to be able to do it over and over and over again.

David Giffin said something at last year’s TED conference that is particularly appropriate to mention here. He said:

“…every one of us has at least one or two great photographs in them. But to be a photojournalist, you have to have more than just one or two great photographs in you. You’ve got to be able to make them all the time.“

So you need to be able to consistently create fantastic images from your shoots, day in and day out, under constantly changing and challenging conditions. In other words, your skills should match up with what you’re charging. Your clients need to be able to look back at the images you produced and say, “that was worth every penny I paid, and more.”

2. The Service You Provide

The second area that you can create value for your clients in is in the customer service you provide. This is a relatively simple area in which to create value, and this idea really centers upon setting expectations for your clients and then exceeding them. This means that you tell your clients that their images will be ready in 4 weeks, but then delivering a final product in 3 weeks instead. It also means having clear, consistent communication throughout the whole process so your client knows exactly what’s going on and when.

In other words, every interaction with the service portion of your business should add to the customer experience and not detract from it. Answer your phone, call clients back quickly, answer e-mails in a prompt fashion, and deliver everything on time, if not early. That’s how you create value in the service you provide.

3. The Experience You Create

This third area is probably the most fun, at least I think so. Your clients are really paying you for the experience that you’re creating, both in customer service and the finished product. Think about Apple products, for example. When you buy a brand new iPad, you’re not just buying the device. You’re buying an experience. The experience of going to the store, talking with the employee, going through the transaction, walking proudly out of the store, opening the box, and turning on the device. It’s all part of the experience, and each part of the experience works to make the final product more valuable.

So with the experience you create, what are you doing to break the experience down to meaningful touch points? Maybe gifts are your thing. Or handwritten notes. Or flowers delivered to your clients on their birthday. If you’re out to create value, then you need to make sure your interaction makes the experience better every step of the way.

So how do you do this? My friend Dane suggests that to be successful in this area we need to “be the invitation to others, that we would want for ourselves.” In other words, how would you feel special/valued/important/unique? What do people do for you that floors you and makes you stoked? Do that for your clients.

So what?

You get it – we need to create value in everything we do, and the value we create needs to exceed the price/fee we charge. Now let’s talk about the different ways for you to actually present your value/pricing to your clients.

But before you go anywhere, remember simplicity. I think photographers overcomplicate pricing more than anything else. Read Kevin Swan’s thoughts on the importance of simplicity. When you apply his ideas to pricing, he’s communicating (1) the importance of not creating confusion in our pricing with unnecessary bells and whistles, and (2) the idea that I’m not designing my business for everyone, but rather a very specific subset of the population. I think if you can take these two points and use them as the lens through which you view your pricing, you’ll have a much easier time booking clients.

Three Pricing Models

There are three basic models you could use to set up your pricing for your business. One isn’t better than another, but the important thing is to think about how you could use one of these to create the most value for your clients (in terms of simplicity, ease of understanding, etc). I have to give a big shout-out to my friend Jared Bauman for taking some time to help me understand the difference between these models, specifically the difference between the a la carte and up-sell models.