4 reasons for photographers to raise prices right now
Image by: @imperiumnordique
When we post about our prices in various online forums and groups, often other photographers just say RAISE PRICE! But it’s important to pinpoint our reasons for a price adjustment, because we can move forward with more confidence in knowing we are at the correct price levels and can account for value, skill, talent and market conditions.
Here are four reasons why photographers would increase prices, either right now, or for the upcoming year.
We have inappropriate pricing
If you chose a low price out of thin air (or based in on something like gas money) and didn't actually calculate your cost of doing business, then pricing is inappropriate because it’s not anchored in the real life financials you are experiencing in your business. Whether you acknowledge expenses or minimize them, they are there! I don't consider this as raising price more than a price correction. If you are in this category, it’s important you act now and not wait until a future date.
Price corrections can be difficult because clients come to expect that price, and balk at an increase for no reason (and you don’t really want to advertise that you had it wrong). Ideally you would start out with the right financial foundation, which I call the dream allocation instead of a cost of doing business. Read more about it here. Better to rip this bandaid off sooner than later, before you burn out from low prices that can’t advance you, don’t motivate you and attract price shoppers.
We have unhealthy pricing
Where you might be covering your minimums, your pricing is not set for growth. This is usually fear-based where you are settling for a level because you believe you won't find clients if you go higher. But you can't grow because there is barely anything left over. You can't invest in better equipment or better systems and more amazing client experiences, so you are left stagnating. The money for growth comes from healthy prices that account for the future health of the business. Will you want to upgrade or add to equipment in 6 months or a year? Lease a studio? Invest in a CRM? Create beautiful gifts and surprises for clients to elevate their experience and your business and brand? The only place that money can come for those things is from the business today that accounts for the path forward.
We adjust for market fluctuations
You need to keep a pulse on how your expenses are changing. Did any of your suppliers increase cost? I know that I’ve been notified recently through Pic-Time that a few professional labs connected with them have made pricing adjustments, because they are doing the same as you - wanting healthy and appropriate pricing, and their costs from their suppliers are raising! You must account for these increases in your pricing or you will experience erosion of your bottom line. I experienced this first hand in my non-profit organization where annual grants stayed the same for a decade but company expenses grew by 3-5% year over year. It's a slow fail. At minimum, look at the annual inflation forecast and adjust for that.
We have grown through experience, education and investment
In a traditional workplace, we usually rise the corporate ladder through promotions and salary level jumps when we obtain certifications or complete certain industry courses or training. As our own employers, we need to motivate our only employee (ourselves!) to have a similar rise to new levels. Imagine being in a workplace that doesn’t recognize your professional advancement and keeps you at the entry-level salary even if you are upgrading skills. It wouldn’t really fly and you’d want to seek a workplace that compensated appropriately for advancement. If you are investing in courses and gaining experience over time without any adjustment to price, resentment will start to build towards the clients paying those low prices. But for this, the clients aren’t to blame, because they are paying the price on the price tag. And who sets the price tag? You. Reward and compensate advancement accordingly. I recently invested in a 1k course to level up my wedding game, and for this upcoming wedding season I have added a factor of 3x ($3000) to my wedding pricing calculations because that education definitely added a 3x or more factor to my ability to produce a stellar wedding experience and results. Education and experience is growth and growth is reflected as higher prices so that a business may continue with its ability to serve at that top level.
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