Maybe you already don’t post everything online, except for your starting rate. Good for you. Did someone tell you not to do that?
Why? What if they were wrong? Let’s explore the reasons why it is so and not simply do what others have said.
Quantity-Based Businesses
There are good scenarios where prices should be posted online. For example, McDonald’s! McDonald’s is a quantity-based product where prices is a one of the many lures that they use. In fact, they encourage you to compare their prices with competitors! I’m pretty sure that they’re the cheapest, thus victory.
Quality-Based Businesses
Ever walk into a Furla or Gucci store? Are prices marked everywhere so that you can see them immediately? No. Why?
Reason #1
Their goal is not to offer the cheapest purse; it’s the wonderful feeling you get when you sling a designer purse over your arm. If it’s utility you’re looking for, there’s a whole rack at Walmart for $20.
You’re not selling a utility. You’re selling an experience.
Reason #2
By itemizing, it allows consumers to make comparisons before even understanding the value. Made up example – Fendi vs. Dior. Let’s just say that both of them have prices up on their store windows and that they’re contiguous to each other.
A shopper named “Julie” might saunter by and get captivated by a beautiful black Dior purse that would look absolutely adorable with a newly purchased evening gown. She gazes up and it reads, $2000.
“Lawrence would kill me if I bought one now. I promised to tone down my spending too,” she thinks to herself.
Oh wait, right next door has a similar one by Fendi for only $1700. And it’s even bejeweled, so it’s mildly ostentatious! Feeling giddy, Julie darts through the grand doors and surveys it momentarily before purchasing.
Without even giving Dior’s purse a chance, Julie made the comparison – size, looks, brand, status are all about the same. What about quality? Who knows, maybe that Dior purse is the purse that Angelina Jolie wears for the red carpet debut for Salt and the price thereafter sky rockets!! No chance now. The decision was made. Dior lost the business despite being a better buy.
Here’s a simplified example: I go to CVS in need of Tylenol. I pop over to the medicine aisle and see that there’s a generic version. Tylenol has Acetaminophen; so does the generic version. Tylenol has crospovidone; so does the generic version… Gosh, it’s practically the same, except that the generic version is $5 cheaper. Done – generic version it is.
We’re not pharmacists. Generic versions might be leagues weaker, but through outright comparison, we made a choice, which may or may not be the right one.
Reason #3
By publicizing rates, it allows consumers to perceivably gain through lost value. So continuing the use of Julie as my character, she saw the immediate savings by comparing the store fronts. She thinks – similar purse, equal status, but $300 saved!
“With that $300, I could get myself a matching pair of shoes!”
Again, poor poor Dior loses out on the business. Fortunately, in real life that’s not the case.
Conclusion
So let’s say that a bride publicly saw that Joe and Jane charge the same price, except that Jane includes an engagement session and an album in that package. The likelihood for said bride to contact Jane and never Joe is very high for the aforementioned reasons.
The goal here is to allow yourselves a fighting chance to share with your clients why you are so wonderful. Otherwise, people will just walk on by.
However, it is okay to put your starting price. Just don’t (reason #2) itemize it by saying it includes this, this, this and this.
What I want you to do now…
- If a light bulb moment went off, please share it with the Retweet button below or via facebook.
- Comment below if you’ve had a similar story because I love stories!
- Got a question? Comment your question below and I will either reply or make a follow-up post
Your friend,
Lawrence Chan
P.S. Julie – if you’re reading this, don’t hurt me. It was JUST AN EXAMPLE. We can go shopping later today because I know that you’re sick.
P.P.S. I was asked via comment last week why I never tell my Tofurious readers what to do. Isn’t learning why much better? I firmly believe in understanding strategies rather than mirroring actions.
I post my rates because I tried not posting and I got nothing, yet even now when I post, I still have no biz. What should I do? Many like myself do post and they are flooded with business and they are not “cheap” or “low end” photographers either….
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Hehe well if neither are working, then that’s no good. Remember that pricing strategy is only a teeny tiny aspect of your marketing repertoire.
Well, since I do not know who you’re referring to, there could be a number of scenarios.
1. For their target market, they’re still considered substantially lower than what they’re worth.
2. They are adding a lot of fluff to make things appear larger than life. For example, if they’re competing for itemization, then why not throw in a whole row for 4×6, 8×10 and other less costly items.
Just some thoughts. Bottom line question – WHY? Ask them.
Right now, you’re reacting. Plan strategically before acting.
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Might help to have a website people can get into?
It took me 10+ clicks to get past your front page.
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@Israel I created a Splash page to help search engines to find me. It’s all HTML. Once you enter my site where is says Enter Deirdre Ryan Photography, it’s all Flash. I’m not sure what you mean by 10+ clicks to get into my site though. I tested it thoroughly and no one had problems. They clicked on Enter and that was it 🙂
@Lawrence, I will ask the fans on my FB page. I’m considering changing my pricing again. You can’t please everyone 😉
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Great read! Wish more photogs would think this way 😉
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Here is a good article saying the opposite. I can see where is you were a very high end photographer that there would be no need for prices on the website. However, when I was shopping if I didn’t see a price I moved along. I don’t like contacting people and I want to know exactly what I am getting and how much.
http://offbeatbride.com/2010/07/dear-wedding-photographers
My point is it may not be best for everyone to not included prices.
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I mentioned earlier with Deidre – reaction mode. Plan strategically as to WHY this person thinks this way and whether that is your target audience.
I don’t disagree completely with Offbeat Bride. There are vendors who do not list anything, except for “custom package upon request,” which I find not very intuitive for clients. I’m a firm believer that a minimum price should be posted, but that is all.
But then again, are we trying to be McDonald’s photographers or Gucci? Think of the reasons why we should act a certain way. Trust logic and your gut, not what someone else said (but do analyze it).
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I disagree for two reasons. 😉
1) Price is part of my brand. Since my prices are 2x more expensive then other wedding photographers in my area, showcasing them proudly sets me apart.
2) Since my supply is so low and demand is so high…my goals are still met. Despite posting a price range on my website.
In addition, I’ve heard first hand brides say, “If a photographer doesnt have their prices on their website I move on. What are they trying to hide?”
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Rob, Rob! How are you, buddy? I wish I could answer you uninhibitedly, but there are some items I cannot post online. In any event, consider this –
You’re telling me results, not reasons.
And Deirdre told me reactions, not reasons.
To be honest, I could be wrong. Then that means that Gucci, Fendi, Dior… are all wrong too.
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Hey man, I’m good. Heading out West tomorrow and I’ll be seeing ya on the 5th. 😉
OK then. The reason why I believe prices (at least range) on MY website has worked is because:
1) My target market still have budgets. So much of their wedding planning is structured around price.
2) Having my higher prices on my website have increased my perceived value in the public’s’ eye. It is hard to compare at this point.
3) My brand, referrals, SEO and demand are so strong that price doesnt effect my booking goals.
4) I am not a designer bag. 😉
I doubt that Gucci, Fendi, Dior are wrong. Comparing a product and service is hard.
With that being said, I understand and agree with you that quality businesses should not stress their prices like the WalMarts of the world. I believe you can show your prices on your website in a matter that still showcases a quality business. 😉
Cya soon.
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I’ll make you a believer at the Clarity Workshop 🙂 just you wait!
If not, Jeff will. He’s much more graceful with words than I am.
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I’ll bring some tomatoes! 😉
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Hi Lawrence,
Great article explaining the difference between quality based and quantity based businesses. Would love to hear more on this topic.
I’ve just recently re-done my pricing, and it goes something like this:
I offer A La Carte pricing which allows customers to customize their wedding from the bottom-up. It makes my starting rates sound accessible, but really I’m making my shooting rate accessible, and then encouraging them to buy only the photos they love at a price of about $50 per high res file. The idea is to get them excited about the photos and therefore buying more.
I also have some packaged plans for those who prefer me to take care of details, but I allow customers to do “add-ons” from my A La Carte pricing so they are encouraged to customize and buy more.
This is a new strategy I’m trying. In both cases there is no upper limit to what they may spend (which is the point). The goal is to alleviate some of the risk of trying out a “newer” business, but get them to fall in love with the images and therefore spend more money afterwards.
I have been assisting/shooting weddings on the side for the past five years, but this is the first time I’m really making a conscious effort with my marketing, and I’m about to put together a pricing brochure, so I’d love to get your feedback on this.
Eventually once I’m more established I’d like to charge higher rates and work more exclusively with “quality” customers.
As I still have yet to prove if this strategy will work or not, I’d prefer to just get a private email back rather than post about it on the blog. I’m all about sharing learning, but in this case I don’t have solid evidence yet 🙂
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Hi Lawrence, up until recently we’ve been publishing our rates via our website, after we updated to our new website we decided no to do it anymore. As we’ve always had good conversion rates on the enquiries we did receive, we started receiving a lot more enquiries after the changes (not publishing our rates) while maintaining a similar conversion rate to actual sales = more sales! Thanks again for your food for thought and THANKS FOR NOT GIVING THE ANSWERS, because it IS better to apply the principles rather that a recipe. In that way we can all be unique and maintain focus in our businesses!
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well, there is a discussion on this in a flickr-group. I was about a blog post from “Offbeat Bride”: http://offbeatbride.com/2010/07/dear-wedding-photographers
It’s not only about prices but it’S mentioned aswell. Stating brides are busy and want to know upfront if a photographer would fit their budget. So I’m not sure which is the way to go here…
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Read this.
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I’m on the fence. Yes, as photographers we want to create value. But, this to me is a bit of a bait and switch. I’m going to get you to fall in love with me with my awesome website and great photos, then tell you that you can’t afford me (b/c let’s be honest, it’s the crazy expensive photographers who do that!). But then you’re going to increase your budget and spend more than you can afford just to have me shoot your wedding. Yes, I personally gain b/c I didn’t lose the business, but at what expense? All would not be right with the universe if that’s I chose to go about getting my business.
I was going to post the Off Beat Bride article, but was beaten to the punch, thanks, Brad! See above!
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I mentioned earlier with Deidre – reaction mode. Plan strategically as to WHY this person thinks this way and whether that is your target audience.
I don’t disagree completely with Offbeat Bride. There are vendors who do not list anything, except for “custom package upon request,” which I find not very intuitive for clients. I’m a firm believer that a minimum price should be posted, but that is all.
But then again, are we trying to be McDonald’s photographers or Gucci? Think of the reasons why we should act a certain way. Trust logic and your gut, not what someone else said (but do analyze it).
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This is a good topic but your article is talking more about products and it isn’t a direct comparison with services. Photography is a service even though we sell products along with our service,they hire you because of the service you provide given they like the quality in the photos. If you post your rates, you lost communication with that potential client. Best is to not post your rates and have them contact you for it. Then you can contact them back and let your personality speak and then you might just spark a meeting. And if you think clients won’t like this approach, then they are not for you. The main reason is to ignite that communication with them and your chances of booking them will be far greater.
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Totally agree with you James.
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Fully agree with this article:
Day Rate vs Actual Cost
When you ask for a “day rate” you will not be getting the actual cost for an assignment. What you will hear is the fee the photographer charges for performing a one-day shoot-showing up, taking the pictures, so to speak. It doesn’t include expenses and, more importantly, it does NOT include any usage fees – the fees charged to grant the rights to reproduce the images.
Even more important, good, ethical photographers won’t even quote you a day rate. Why? Because they don’t price their services that way. Photography isn’t a commodity nor is it labor. A photo that takes one hour isn’ worth less than one that takes 7 hours to create. Each image is different. Thus, a good photographer will be more than happy to provide you with a specific estimate for your project, taking into account your needs, the creativity involved, etc.
More info here
http://www.no-spec.com/photography/how-to-buy-photography/
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I agree with being completely transparent during the consultation. After they get a chance to know you on a personal level, they should have every right to know everything!
Anything hidden, I don’t condone.
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i totally agree with your reasons…but, recently saw this Offbeat Bride article.
it’s very interesting to read what consumers want – and it’s almost unanimous that they want some sort of pricing.
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Read the previous comments or this
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I think that’s very true… If you’re the most expensive or best anyway. Unfortunately it cuts out the middle class, which most people are, and are also trying to market to. And then when most photographers are implying they’re in that level of quality by removing their prices, it loses its effectiveness.
At least having the bare minimum price is essential to market to most personality types – and depending on your market you can alter to look more attractive by simply making it more inclusive or less inclusive – and then set your pricing schedule/packages/whatever so that once they’re in the door and have make some sort of subconscious decision to contact/meet with you, you can then upsell.
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So, I’d really like to attend a clarity workshop. Just from reading/watching your posts, I’ve already started to alter the way I think about my business and even how I’m operating my business. The problem is, you’re in LA, I’m in Tampa. Any chance that you’ll be coming near here?
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Having clarity through strategic thinking is powerful. In fact, it’ll make you a more confident business person.
Just wait, there are more valuable posts / videos coming. And I’m going to tie transparency with itemization soon. That might just blow some heads off.
Jeff and I are only going to host more workshops if these first two in OC are well received. However, I am confident that it will be a blast!
In any event, I am glad that you’re benefiting from this. I thank you for your response!
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Ok, so plan a trip to Orlando and I’ll be your personal evangelist and make sure the workshop sells out : ) Who can turn down a revolutionizing seminar and a trip to Disney World?
Jeff – I’m also a huge optimist (not to say Lawrence isn’t)
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Thank you for the words of wisdom. I enjoy receiving your newsletter =)
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Whenever I see/hear discussions that revolve around pricing (amounts, disclosure, discounts) I’m often reminded that so few photo businesses have taken the effort to determine whether their key value is based on quality or convenience. I think pricing decisions are easiest once you’ve made this hard choice.
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but but but Jeff, decisions are so hard because we have to commit to it 😛
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What are your thoughts on posting a “Packages Start At…” price?
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Always a good idea to set the precedence – I think I mentioned that in the article 😉
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My bad, shouldn’t have skimmed over that last part.
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Hey,
Great article! I wondered what you would think of creating a opt-in list that would fire off an actual price guide? With most photographers that do not post the price, they will send you a price the moment you contact them anyways.
Thoughts?
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Even if I were to share my packages, it won’t help you sell any better. You’re not me and I’m not you.
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Some of the best wedding photographer websites out there break the rules mentioned by Off beat bride.
– http://www.christianoth.com
– http://www.josevilla.com
– http://www.jonathancanlasphotography.com
Obviously, if the site is well designed music and flash can enhance a website. I do agree with everything you’ve said on this post. Maybe adding your average price range is a good idea in certain markets and keeping an itemized price/package list for your personal use is smart.
If you don’t write down what you offer somewhere you might just forget what your selling!
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Gucci’s prices are all online, and visable in the boutiques. 😉
you have to build the perception if having a highend business. That’s key…and many overlook this key ingrediant. As a highend photog, my prices have always been online….never been a problem.. and I am pretty sure I’m one of the mist expensive in the city.
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Thanks Lawrence, I always like to read your posts!
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Hi Lawrence,
Somehow I lost our comments back and forth? Now I only see other people’s comments from 2010. But ours from yesterday seem to be gone. Are they elsewhere?
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I used to list out everything, my packages my ala cart everything! I had little to no calls. I read somewhere ( i think go4pro) about not publishing giving your full detailed price list online. I changed it up to just give my starting price. I get inquiries all the time now, and have doubled my bookings. I wouldn’t call it a bait and switch. I want people to fall in love with my art. Just as I fell in love with my photographers art work and paid over double then what i originally budgeted. The only prices that i do give out is on my session prices.
Best of luck to everyone!
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It’s been quite a while since I last posted. I have updated my site, and now just add a starting price. http://www.dryanphoto.com/weddingpricesinvestment
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What do you think about the anchoring effect of putting a “starting” price? I’ve put the most ostentatious price at the top of the packages list as an anchor, but what if this starting price undoes all this good work?
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The high anchoring price is probably best served during the sales meeting. However, the starting price, which is an anchor in itself, is great to filter out looky-loos.
Keep in mind that a super low or super high starting rate sends signals about your quality. What do you want people to perceive you as?
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