Profitability of Portrait Studios

[Alex_c70]

Good morning all,

I am seriously considering opening a studio, with a focus on seniors, family portraiture, corporate headshots, engagement portraits, etc. I believe I’m nearing the point of being good enough behind the camera, but this post is really more about the business side of things – specifically studio profitability.

I’ve heard some say that business skills are more important than photography skills (not that the latter is unimportant!). In a general sense, I have that covered. I have an MBA from an excellent business school and, more importantly, 15+ year’s business experience including 3 years of self employment. I’m not as strong in marketing as I would like to be and have plans to remedy this (or hire a marketing guru if I’m a flop :)). Oh, and capital is not a problem.

So, my question (finally) is this: How reasonable is it to expect to earn a minimum of $50,000 a year after taxes, operating expenses, etc? I know this can vary greatly in different parts of the country (I live in central Virginia). I’m hoping those of you with knowledge in this area (currently own, used to own, Uncle Bob owns, a studio) will chime in with your thoughts. I really appreciate your help – thanks!!!

George

[poloman]

If I lived in Virginia, I would concentrate on the fox hunting crowd.
Most of the people I am encountering like me to come to them and do a location shoot. This is challenging for me but they like being in their own environment.
Regarding the money. I wouldn't expect that the first year. Once you have a name, you should be able to drag down a lot more. If your good. Bottom line, I think the profitability of your studio will depend on your reputation and your ability to give them what they want. (To Look Great)

[John Mireles]

Well, it's certainly doable. Making money in portraits is certainly about the business. It's not enough to take good photos - the key is to get the clients in the door and then have a process in place that will allow them to get the work that they want while generating the revenue you need to thrive. It's really about the business model. Until you understand the business model, don't bother because you will just spin your wheels.

It does take time to build a portrait business, but once you have the clientele, you should have a fairly stable business for many years.

Also, you may want to sign up for my newsletter (it's free) as I talk about sales and marketing quite a bit. I also have contracts and related info that you'll find helpful.

John

[ssim]

You can make money doing this in any jurisdiction. It is a matter of how you market yourself and if the customers are leaving happy. They will provide more advertising for you than anything else.

In this day and age you cannot discount the effect of the weekend shooters. Portraits are an easy thing for them to take on and they can have a significant effect on the marketplace. I would think that you should plan on operating at a net loss for a couple of years before you have your name built up and can foresee decent returns.

Good luck

[Alex_c70]

If I lived in Virginia, I would concentrate on the fox hunting crowd.
Most of the people I am encountering like me to come to them and do a location shoot. This is challenging for me but they like being in their own environment.
Regarding the money. I wouldn't expect that the first year. Once you have a name, you should be able to drag down a lot more. If your good. Bottom line, I think the profitability of your studio will depend on your reputation and your ability to give them what they want. (To Look Great)

Thanks, poloman. The fox hunting crowd never occurred to me. Also, from what I gather, I think your parenthetical comment goes straight to the heart of what makes portrait photographers successful (or more successful).

[Alex_c70]

John, I just signed up for your newsletter – thanks. Re: the business model…I think you nailed it. This is something I need understand far better than I do now. When I can sit down and write a comprehensive business plan, I think I’ll be there. I’m actually thinking of contacting a successful portrait photographer (don’t yet know who this will be:lol:) and volunteering my time – perhaps a week of vacation; in exchange I would have an opportunity to observe and participate in a successful operation.

[Alex_c70]

In this day and age you cannot discount the effect of the weekend shooters. Portraits are an easy thing for them to take on and they can have a significant effect on the marketplace.

Good luck

ssim,

This is one of the factors that I'm most concerned about, and will need to differentiate myself through service, branding, etc. Are these weekend shooters saturating the market, and if so can I still carve a niche? I also wonder if there is a segment of the market with higher barriers to entry than an $800 DSLR? Sort of rhetorical, but any thoughts are much appreciated. :)

Thanks for taking the time to reply!

George

[poloman]

I don't think money will cure the problem but being the best will. Concentrate on the people who have the money to pay you well and picky about the final outcome. They may be a pain at first but they will always come back. Who else could please them?

[RDKirk]

Poloman is dead correct. You must think in terms of a low-volume, high-end market. Your competition in that market is Mercedes and Nordstrom, and you must market like them with the same kind of customer-care (luxurious) and product (luxurious) and presentation (luxurious). Done right, you can reach that level of income without working yourself to death.

One hint I would offer would be to build a portfolio with an eye toward free public displays of portraits as art. Try to come up with an angle of a portrait series ART PROJECT that would seem appropriate, such as a collection of portraits of local artists and/or writers. Done as a specific project, it would be of interest for display to a local bank, the library, or the higher-end non-franchise restaurants and boutiques. That gets you known as the local portrait artist whose work is important.

Obviously, these portraits must be of the size (wall size--no smaller than 16x20 and perferably larger) and production quality that you intend to sell. Always show what you want to sell.

Actually, there is one little quibble I'd have with Poloman...

In my experience, once you gain a deserved reputation of being the high-end photographer, in my experience the high-end clientele actually tend to be less of a headache than the low-end and middle.

[poloman]

That's no quibble with me. I agree with you. The truly high end tend to be gracious as long as the quality is there. The picky, no matter their fiscal status, will return because they have no choice.
I think you can "train" the lower to middle means buyer by always producing the quality. They figure out that paying a little more will get them a lot more. Hopefully shake them from the "snapshot" mentality.
I think your portrait gallery idea is EXCELLENT! To the OP... this is a great way to use working capitol!:)

[Picture North Carolina]

...and if the customers are leaving happy. They will provide more advertising for you than anything else.

Man, if this ain't words of gospel I don't know what is. In a non-related business years ago, I advertised to start, but never had to spend another dime after things got going. Word of mouth from happy customers generated so much new business I could hardly handle it. I put 3 of my 6 local competitors out of business, and 1 remaining competitor who was number 1 in the city before I started was forced to change his business model to compete.

Happy customers + word of mouth = good profits.

(And don't ever be affraid to mention to customers that if they are happy with what they get, to please tell a friend. remind them to.)

[airfrogusmc]

I personally know two photographers that now do only portraits but it took both 10 plus years to get to a point where they weren't shooting weddings also. One is in a very upscale Chicago northshore suburb. The other is also in a very affluent area. If you are just going to support yourself shooting portraits you will need to have a client base that will be able to support your prices unless you do volume. When I shot weddings I was able to get into a moderately high end market and its a heck of allot better both creatively and financially to be able to shoot 30 weddings a year and make a decent living than to shoot 100 a year. Same way with portraits. Better to be able to shoot fewer and make more but its probably going to take some time to build a following. And if you go for a high end client allot of the conventional advertising will not work. Location of your studio if you decide to have one will be important and try and find away to separate yourself from what everyone else in the same market is doing. For instance if everyone is shooting digital try 4X5 B&W film. That certainly would be the clientele that would appreciate and be able to afford beautiful hand printed B&W portraits.

[NickSimcheck]

I also agree that you should look into a local niche.

Here in Michigan the best niche we have is Automotive.

We also have a lot of horses in michigan (close to 200,000 as of 2003) and Oakland county (right next to me) has the highest population of any county in the US. I haven't tried, but I think there might be a decent market in horse portrait/shows/etc.


It's (photography) never been my primary income, but I feel that I could rake in $50,000 after the dust settles. It's all about yourself, and how people interact with you. The best (money/business wise) photographers all have one thing in common, chrisma.

[Jon, The Elder]

We also have a lot of horses in michigan (close to 200,000 as of 2003) and Oakland county (right next to me) has the highest population of any county in the US. I haven't tried, but I think there might be a decent market in horse portrait/shows/etc.

Works for me.

[LBaldwin]

You have some great competition in your state already. From the Tidewater area to the Potomac are soem pretty hot shooters with a very loyal clientele. I grew up in VA. Beach.

Richmond and Fairfax both have great shooters there too. So the first step is to understand who you are up against.

To get a really good understanding and to actual see an greet consider PPofA.

That is where you start. Portaits in your area are rather conservative, and there are plenty of shooters with a 150 mile radius of you.

Les

[John Mireles]

The thing about portrait photography is that yes there is plenty of competition at both the high end and the low end (glamour shots, picture people etc.). But there are many, many people who would love to have professional portraits taken that never get around to it. Unlike weddings where there is a clearly set date and time for which photography is required, people can put off getting their portraits taken forever.

That presents both a challenge and an opportunity. The opportunity lies in the fact that there is an untapped mass of potential clients who have no alliegance to any studio or photographer. The challenge is to get these people in the door of your studio. That's not an easy challenge - although some areas are more receptive than others. (You won't know until you try.)

I love reading that "portraits in your area are conservative" because that indicates an opportunity for someone who's not conservative.

John