We are having a business meeting here in our studio pretty soon. We, (Mark and I) had a husband and wife convo today just to kind of go over some of what we want to discuss.

First, is the economy and how it is affecting people.
Second, how is it affecting our business.
Third, what are we going to do about it if it is having a negative impact.

Has your business been impacted? What have your experiences and decisions been with regard to deciding what to do with your next pricing decision. Will you be raising your prices, keeping the same or giving discounts? Are you booking less for the next season, is it too early to tell?

With all the foreclosures, gas prices, food increases....etc. are you seeing a downturn in business overall?

Could we dialog about what is happening out there?

I live in West Texas, When the oil is flowing, so is money. While middle class families are feeling the pinch, the upper class is swimming in money and they are not afraid to spend it.

It hasn't really affected my wedding boookings for next year, but it has affected my family bookings. I am working on getting into that higher end family market this next year. I really ulimatley would like to get out of wedding photography alltogether and just shoot families. It is my 3 year goal. With 2 of the biggest family photographers retiring this year, I am getting closer to the goal.

This will be an interesting thread to watch.

it's a tough call. I raised my rates from last year and I'm booking - just later. I think people are holding off 'til the last minute. It's been a really weird year.

+1 with Shane. Folks are still booking, just much later thank usual. Least for us....

Great questions. An interesting conversation to follow, I'm sure.

Here are my thoughts. I, for one, cannot comment on drops in prices/clients, as I've only been doing weddings for 2 seasons now and I have nothing to compare to. I am booking weddings at a regular rate, and have begun booking for 2009, but am by no means so busy that I am turning people away either. I don't know if my number of clients is normal or low. It is higher than last year, and I hope that next year will be higher still. I continue to have wedding inquiries (again, the number is higher for me than last year, so nothing to base it off of in compairson to the rest of you), but I have seen a significant drop in my portrait inquiries. Many people who have inquired tell me "oh, I still really want to do it, we just can't afford it right now." I can't count how many of those I've heard lately. I want to focus on weddings primarily, so I don't loose sleep on the portraits, but it was an eye raising thought given budgets.

Photographer aside, as a person, living in this economy, I know from personal experience how money/prices is affecting my family and how I've had to make my expenditures on non-necessity items go down drastically in order to stay comfortable. When paychecks are the same, but outgoing bills such as utilities, insurance, groceries, gas and the like are higher, there is not the same amount left over as there was 6 months ago. While I haven't lowered my prices, I also can understand that asking top dollar in this ecomony (without the years of experience and name recognition to warrant it) is not practical for me, so I've found a happy medium. I've restructured my pricing method without changing my prices. I've lightened up on my CD policy. I've allowed payment plans. I've changed the ease at which clients can afford me. While I have my own costs and cannot lowball my own efforts, I also cannot be blind to the fact that we are in a different time than we were a year ago and if I want to keep clients coming to me (in this saturated market) I need to be flexible.

You and Mark have great work, and are amazingly professional and fun. I hope that business is going well and that you find the right answer for your business.

Great topic Kerri. There are some photographers whom I respect and admire starting to come down in their starting price in order to attract more inquiries while I'm slowly raising my rates and wish they would do the same...raising the bar for everyone. I'm thinking the "big middle" is only going to get bigger with the current economy.

For those that are ready and equipped to do so ...if ever there was a time to raise your rates, I believe this is it. Continue to build through the big middle and get to the top. I know this goes against all logic but look at Apple. All PC makers are suffering from poor sales and it is all blamed on the economy...but not Apple. Their sales numbers continue to rise and there is no slowdown in sight.

Why is this? When you think of Apple, do you think of budget computing...or do you think quality, sleek, trendy, icon, trend-setting? Apple continues to wow the public with quality products (and an equally impressive experience) and are only growing as a result. I think photographers (and other similar industries) can take some serious notes from this.

Similar to Shane et al. I raised my prices last year...almost completely sold out this year...slow for next year.

For next year I've raised the profitability of all of my packages while offering newer value packages with more limited product offerings...though I'm a tiny bit nervouse to hawk those for prime April - June, Sept-Oct dates.

My cushy corporate job is all but a gone-er...should be a very interesting next 1 - 12 months for us...esp. now that we'll have two kids in private school...

BTW -- keep in mind -- "we" don't set our prices, the market does.

Is this just a matter of examining the prices of other photographers in your area?

Haha...lets all move to Texas!!! You are sittin pretty down there! Good for you!! Hi Shane! Thanks for chiming in from your corner.... I was wondering if that was the case. It looks like people are waiting to book here too...Yes, it is kind of nerve wracking to try to forecast the future...which is why I thought it might be a good topic to start discussing what people are experiencing. Good luck with the move to full time Dan!This is what I was hoping to hear. I tend to lean this direction. So glad you brought this up. Anyone else feel this is the way to go?Thanks Tana!! Good to hear you chime in too! These are all things we are going to be discussing as we have portraiture work that we can cull in the down time but are people finding that is just too much of a luxury in these down times?

I definately think so. The area you market in does have a determination on your clients' ability to pay as does the going rate of your local competition. If you are one of those who markets globally and you can determine your own price, that is great, but most market in their own area and that should be considered. I currently live in Sacramento (soon to change), and the housing economy is one of the worst here, which affects client ability. Throw in that photography market here is definately saturated with a lot of low-end prices and it becomes harder to demand top dollar from brides who can barely afford the local market.

I laugh because when Sacramento brides inquire most have commented how high I am and try to negotiate even giving me links to other local photographers (some are $900 for the whole shebang). Let me state - I am not on the high end! On the flip side, my San Francisco inquiries (only an 1.5 hours away) don't even blink an eye at my "affordable" prices and I've booked more there than here. I decided, at the risk of losing all local clients, that I hate being known as "affordable", so I restructured and changed my prices to accomodate the Bay area market. I've made a package that I am comfortable with and my bookings actually went up. Go figure. But I did have to evaluate which market I wanted to focus on and looked at the going rates (so to speak), the competition, and the clients. It really does make a difference. You can't compare Washington state apples to Florida oranges!

Tana you are leaving the area?! Does this mean you are heading to the Bay Area? Can I join you!! lol...I hate this heat. I grew up down in the Bay and miss it!!! Last year we decided to not do weddings in July and August of this year because of the heat and I am so happy since we just had the worst heat since we started wedding photography. Plus I was suffering so much with fibromyalgia and I am 50 *cough* something now and I just dont want to suffer anymore. It was a good decision and we still met our quota for the year. But curious what next year will be like!

I am moving ( ), but not to the Bay area after all that rambling! haha. But I'll post somewhere else and will pm you, b/c I definately don't want to hijack your thread. But I do know from living and working in your market that you and Mark are quality, fun, talented photographers and I have no doubt that next year's weddings will work out for you. (It's those pesky portraits with moms around here that are a trick - but you can handle them!! )

I was talking to another photographer about this a few days ago, and is something that I want to bring up when we all get together on Sunday. I've personally been on the fence about lowering prices for a while. I'm priced out of the market where I am located, and combine that with the current situation with the economy and...well....I don't get as much sleep as I should be.

So...how do you lower your prices without lowering your true worth? IMO, it would still be de-valuing yourself so I do not think it's possible. In my case, I've stuck too my current price, with an increase pretty soon. Still getting inquiries for destination weddings about once a week, so thats good. I may be out of the US for the entire month of March next year...so destination weddings still seem to be on the rise.

Lol...I thought about having a "Crashing Economy Package." That would be funny.

You can always promote that you've "postponed your price increases during these challenging times..."

"Crashing Economy Package" ha! That brings up another good post, Nick. How to recession- proof our businesses in times like these. I like the idea of keeping our business in a place of keeping up with inflation for us. We are constantly updating equipment, and software and tons of other things to make this merry go round go round and keep everyone happy from the bride and groom to our employees. Tana, definitely PM me. Thanks for such nice comments!!! We arent worried.... yet! haha...but we have a local friend who is really scared and afraid he may lose his house. It is what brought me to post this as I wanted to know how bad is it really out there.Dan I have always wondered about your profile pic. Is that guy with you an actor? He looks familiar like the Beav's older brother.

I didn't lower my price, but I did alter the way I present my prices. I used to do all inclusive packages (including engagement session, album credit, etc.). I've moved to an a la carte system. So, the starting price for people is less, but to get everything that was included in my package, clients will pay the same or more.

Its been interesting. Although I've been booking some people at my base rate, all they get is me and the DVD. I have also booked people who have chosen to buy an engagement session, a guest book, an album, parent albums, etc. and its resulting in a higher rate than my old packages.

So, in my small city with a crap economy, my new a la carte system appears to be lower pricing, but its really just giving people a choice in what to buy.

Ksenia

Yeah, that's Tony Dow -- Wally Cleaver. The photo has significance (for me) not because I'm standing by a b-list celebrity but because it was shot at the first professional photo gig I ever shot...a fall lineup premier party for a local TV station in Springfield, MO...20 years ago this September. (Tony Dow was there promoting "The New Leave It To Beaver"... Kinda sad that he suffers from bipolar disorder...he was very nice to talk to.)

i 'eavesdropped' on a bridal forum the other day and was in horror at what i was reading. brides were discussing what they paid for their wedding photographers and it was awful.

am i worried? yes. i'm only in year two of my business and while i am doing much better than last year, i am not doing as good as i had hoped.

Wow it is him!? That was 20 years ago? I am so sorry to hear that he suffers from that. Speaking of that era my oldest daughter was on a mission trip in Africa about 5 years ago and as she was unloading food off a truck to hand to the villagers she looked at the guy standing next to her and said, "I know you." He laughed and said you gotta be in your twenties how do you know me? He was sporting a beard so it was hard to really recognize him. She said, "my mother once told me that she had a crush on you when she was younger and I never forgot that and I have seen you in syndication plenty of times". She was speaking to Paul Peterson! She really liked him and he thanked her for being there and helping his group. He was really impressed with the young people willing to go across the globe to drag bags off a truck to help feed hungry forgotten people.

I hope Tony is doing well these days...

I hate to hear that. I was listening to a talk show the other night and the host was talking about how everyone is going 'cheap" and whenever you interview your dont be afraid to ask everyone including your photographer to cut their prices. Just ask!

This has been an interesting read. I think one way to attack the topic is to not lower your value, but just maybe the entry price as Ksenia said. If you only have packages with lots of "stuff" in it, you may be missing out on those brides that have to decided to cut back a little.

Just like in real life, if you want to buy a car but money is tight, you don't order that navigation system and upgraded wheels. You just take off some options. If the lowest package includes those things, then you make a hard decision and either go elsewhere or suck it up. I think a lot of brides are having to go elsewhere. Having a base package that includes nothing but you (8 hours of shooting plus maybe a DVD depending on your strategy) will show a lower sticker price attracting some brides who are cutting back on options, but may still want the good photographer. While it may lower profit for the wedding, you just have to price accordingly.

Flat out lowering your prices is not an option without lowering the value as well or you will have some very unhappy clients.

Remember to look at your packages from a bride's point of view. I find a lot of photographers make packages that are better for them, but end up probably turning away some brides by removing the flexibility. A La Carte may help a lot of photographers. This got long winded...

Honestly, I'd rather negotiate a little... I think it's kind of fun. And the client feels like you've personalized your services for them. But instead of dropping price, negotiate with product.

I'm not sure that tacking on a cheaper package is the answer. Nobody wants a small package.

+1

One of my favorite things to do is either add in another parent album or give them a larger print credit. But I do that when we meet and ask them how can we close the deal today. I really don't want people to leave without booking us.

Jim,

do you have a lot of success with people booking on the spot? It's kind of rare for me.

We book about 90% after the meeting. We tell them to think about it since it is a big investment and they seem to appreciate that more often than not. We tend to book 98% of our appointments. It works for us. I am turned off by the if you buy today we will give you this and that kind of sales. Then there are the ones that we turn away as well. Red flags ones...only had to do that twice but glad we did!

The photography market has had a low barrier to entry recently. Pro-level digital SLRs have become fairly affordable and a people saw that pros were making a lot of money in the business so they figured "I can do this too... but I am not THAT good, so I will charge less"

This in turn affects the whole industry. Then, when these "ultra-low price" photographers find out they can't support themselves at the rates they are at, they will either exit the market or raise their prices.

I really didn't explain that well, my economics teacher in college was MUCH better- but photography isn't the only market affected with low barrier to entry. It is a typical cycle and those that stick with mid to upper level pricing might feel a pinch during certain times of the cycle, in the end, they will be ahead.

I expect the low-end photographers to not be as popular in a year or two... but then after a few good years for the mid to upper level photographers, there will be a new batch of low-end photographers trying to enter the market. Cycles suck, but if you expect them and save properly during the good years so you can stay alive during the bad years you will do all right.

Just my .002 cents (adjusted for inflation ;-) )

I think you explained that well. I agree with this as well. We hear quite abit from brides and mothers of brides of a horror story of a friend who had hired a cheap photographer or a friend with a nice camera and were so sad they did. We hate to hear this but it happens all the time and it does help us when they come to us because they are trusting us to give them what their friends lost out on because of cutting corners where they shouldnt have.

I think it is a good idea to save for those lean years so you can be still standing when the dust settles.

Thanks for sharing that Scott