Who is your true competition?
In Facebook groups, I often hear photographers say that they set their prices low because there are million other photographers in their area charging ridiculously low prices. Like a price-that-I’d-pay-for-a-package-of-toilet-paper low.
The big question is why photographers who believe they are more talented and differentiated from the inexpensive photographers, think this group are their competition. The natural answer would be because they live in the same area and are trying to tap into the same population. But I’m going to say that’s not true.
Those who want to pay $20 for a photography session won’t typically somehow convert into those who want to pay $300. And especially not if they perceive the photographer’s work as similar. Let’s say we look at the retail world. Banana Republic, GAP and Old Navy are all owned by the same company. They all sell clothing but are targeted to a different group of people. And the quality and prices in each of those segments are different. Old Navy is inexpensive and their stores bright, fun, but simple, and usually kind of messy as people dig through piles of leggings and tanks. GAP is mid-range and the store aesthetic reflects a more upscale experience. Banana Republic has the highest price tag, and you walk in to find neat, sparsely populated racks, and decor to match a higher end.
Now there may be some people who will shop for everyday, basic clothing like tank tops at Old Navy, but invest in a good blouse or pant at Banana Republic. I’ll call these floaters, as they float between segments. The same way I might shop at Ikea for throw pillows and some fun and functional details in my home that may change with the season, but go to Pottery Barn if I want a showpiece for my home that will last 20 years.
The majority of a target population falls within one segment and usually their movement is maybe one segment up or down from it. For example those who shop at GAP could become a Banana Republic customer, or if budget gets tight for any reason, a Banana Republic customer might downgrade to shopping GAP. But unless they are a floater, people who shop Old Navy aren’t going to all of a sudden move up into Banana Republic land. They might understand on some level that quality is the differentiator, but if the pants look similar enough, why pay more?
You may notice a ton of Old Navy commercials out there. I don’t think I’ve ever seen even one advertisement, ever, for Banana Republic. It’s because Old Navy markets to the masses and the company knows that those who shop higher end aren’t enticed by the commercial but have developed strong brand loyalty through more subtle means.
So in your area, there are a ton of Old Navy photographers. You see them everywhere because they are very visible with constant, inexpensive deals. Do you see the Banana Republic photographers? I’m pretty sure they’re there, but they don’t need the bells and whistles that the others do because they attract their clients in more subtle ways.
The lesson is don’t look around you and determine your competition, pricing, and customer profile based on the visible majority. Look deeper to find the minority who is priced profitably and set your sights to align yourself in that segment. The sandbox has a lot fewer spaces in the minority, because it’s a scarier place to be - you have to sell yourself at a higher price point and produce good work with a high value and high perceived value too. But with greater risk comes greater rewards, right?
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