We are in the process of "revamping" our business, and I've got a quick question about prices. We are getting ready to raise ours a little (our starting package is going from 1900.00 to 3500.00), but I'm curious what your take is on packages, and what you've heard from other photographers. We have had three packages lately, and today my wife and I were talking about dropping it to just two... Should there be three choices (the old philosophy of the client will generally choose the middle package)? Is just one package ok? Or is this a good way of keeping your business simple and selling just a particular package?
I don't like everything being a-la-carte (I think that can frustrate brides), and I think the idea of creating a custom package for each client can take up too much time and become confusing, not to mention having to come up with different prices for each "custom" package...
What's your take on packages?
Nathan
Full Version: Your "Fees" page....
I'd definitely go for at least a three tyred package structure and maybe even 5! We're mixed between a "fee based" and an a la carte "product based" setup, but either way is good.
I'm big on "balance" right now and the reason we're moving away from a total "fee based" setup is that I felt, with great direction from my friend David Salomone, that we were putting a cap on the amount of money our clients will spend if we give them a "package."
Here is our basic breakdown for the bride and groom:
$6000 to shoot on the wedding day along with our DVD slideshow, Pre-wedding shoot, Pictage, etc...
$2500 or more on each album
$1500 on prints
It's pretty simple and it allows them to also buy any other products that we come up with in the meantime...also...the $6000 number doesn't hit them as hard as the $10,000 number even though they're gonna get close to that or hopefully exceed it once it's all said and done!
The problems I see with a 2 tyred system is that the people who book the top package feel like they're paying maximum for your service and the people who book the smaller package feel like cheapos! I think a better way to do it would be to price the bigger package higher than where you want it and then add another one or two in the middle. Then give people the number 4 package at the number 3 price or the number 3 package at the number 2 price.
I'm big on "balance" right now and the reason we're moving away from a total "fee based" setup is that I felt, with great direction from my friend David Salomone, that we were putting a cap on the amount of money our clients will spend if we give them a "package."
Here is our basic breakdown for the bride and groom:
$6000 to shoot on the wedding day along with our DVD slideshow, Pre-wedding shoot, Pictage, etc...
$2500 or more on each album
$1500 on prints
It's pretty simple and it allows them to also buy any other products that we come up with in the meantime...also...the $6000 number doesn't hit them as hard as the $10,000 number even though they're gonna get close to that or hopefully exceed it once it's all said and done!
The problems I see with a 2 tyred system is that the people who book the top package feel like they're paying maximum for your service and the people who book the smaller package feel like cheapos! I think a better way to do it would be to price the bigger package higher than where you want it and then add another one or two in the middle. Then give people the number 4 package at the number 3 price or the number 3 package at the number 2 price.
Yeah, I didn't feel right about just two packages - it seemed to be missing something.... Gonna have to do some more figuring... Thanks for the feedback!
Nathan
Nathan
David,
Great feedback. I too recently raised my prices and had the same situation... I decided on 3 but now you have me thinking again:-) I think your right that there is a great deal of phsycology in pricing (which is why it's so difficult).
I also like your comment about "not putting a cap on how much your clients will spend". I think we all need to remember that many clients will spend more than we think they will....
If we let them.
Great feedback. I too recently raised my prices and had the same situation... I decided on 3 but now you have me thinking again:-) I think your right that there is a great deal of phsycology in pricing (which is why it's so difficult).
I also like your comment about "not putting a cap on how much your clients will spend". I think we all need to remember that many clients will spend more than we think they will....
If we let them.
I would also suggest at least considering an a la carte pricing system. I know I am one of the few that offers a completely "unpackaged" pricing system and I actually get clients just soley for that reason. I guess it can sometimes be confusing to the client, but its all how you explain to them. Just like with everything business related in our profession, its all about how things are perceived.
To take it one step further when people realize how easy a la carte really is, it becomes something they favor (at least thats been my experience). I mean what can be less confusing than pick what you want? I mean in reality aren't packages much more confusing? "In this you get 2 parent albums, with a flushmount, 2 enlargements, 85 thank you cards, etc".... how is that not more confusing then just saying something like.... "the beauty of a la carte is the flexibility john and jane doe. you just pick exactly what you want, what is important to you, and thats what you get." see which seems more confusing now?
I'm a HUGE believer in perceived value and I do not believe packages create PV. For example if you were to go to the grocery store and wanted to buy some eggs, you would be happy if you could just buy eggs. But if the grocery store said "well along with the eggs package you also have to get milk, cereal, bread and orange juice." This wouldn't be a great value to you because you didn't want all of this. Or maybe you will want this, but you'd like to have the choice and not have it be forced.
I've had people come to me and say they want nothing but parent albums. I mean like 4 or 5, but just parent albums. One for the engagement session, one for the preceremony getting ready, etc. I thought that was a great idea. I was their ONLY option though because with 4 or 5 parent albums came all sorts of other things that they didn't want with other photographers. So I got the business soley because of what I offered.
I just want to encourage you to devise a pricing system that works for you. Don't just do what everyone else is doing for the sake of copying (like soo many other photographers). I studied the pricing system of my market, decided what was lacking, what clients wanted (which was what we all want, options!!!!) and then devised my pricing system. That to me is the most effective way of doing it.
I hope I have helped, or at least contributed to your thought process.
To take it one step further when people realize how easy a la carte really is, it becomes something they favor (at least thats been my experience). I mean what can be less confusing than pick what you want? I mean in reality aren't packages much more confusing? "In this you get 2 parent albums, with a flushmount, 2 enlargements, 85 thank you cards, etc".... how is that not more confusing then just saying something like.... "the beauty of a la carte is the flexibility john and jane doe. you just pick exactly what you want, what is important to you, and thats what you get." see which seems more confusing now?
I'm a HUGE believer in perceived value and I do not believe packages create PV. For example if you were to go to the grocery store and wanted to buy some eggs, you would be happy if you could just buy eggs. But if the grocery store said "well along with the eggs package you also have to get milk, cereal, bread and orange juice." This wouldn't be a great value to you because you didn't want all of this. Or maybe you will want this, but you'd like to have the choice and not have it be forced.
I've had people come to me and say they want nothing but parent albums. I mean like 4 or 5, but just parent albums. One for the engagement session, one for the preceremony getting ready, etc. I thought that was a great idea. I was their ONLY option though because with 4 or 5 parent albums came all sorts of other things that they didn't want with other photographers. So I got the business soley because of what I offered.
I just want to encourage you to devise a pricing system that works for you. Don't just do what everyone else is doing for the sake of copying (like soo many other photographers). I studied the pricing system of my market, decided what was lacking, what clients wanted (which was what we all want, options!!!!) and then devised my pricing system. That to me is the most effective way of doing it.
I hope I have helped, or at least contributed to your thought process.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.