How do you determine when to raise prices?

brokensocial wrote in post #14795090
Figure out how much you want to make per year. Figure out how many weddings you want to shoot per year. Divide the first number by the second. That's your price.

For this to work, your expectations should be realistic and in line with how much the segment of the market you end up targeting values your work.

It sounds like bookings are coming too easily for you. That usually means you're underpriced. A long time ago I used to book like 95% of people I met, until I was told that I was retarded for doing that because I was underpriced. There's no magic number, but I was advised that you should be booking no more than 25% of couples you sit down with. I'm not sure what % I'm at, but I've lowered it considerably and am happy.

So since March 1 we have gotten 26 total inquiries/emails (14 since June 1) and 12 have booked (7 for 2012 and 5 for 2013), 8 have not, and 6 we are still in active talks with within the last 2 weeks. That's a 60% booking rate.

Based on those stats if i'm shooting for 20-25 weddings a year would you say those bookings are coming too easily? I'm thinking yes and am actually considering bumping up to $2400 from $1800. Crazy?

picturecrazy wrote in post #14796224
It sounds like bookings are coming too easily for you. That usually means you're underpriced. A long time ago I used to book like 95% of people I met, until I was told that I was retarded for doing that because I was underpriced. There's no magic number, but I was advised that you should be booking no more than 25% of couples you sit down with. I'm not sure what % I'm at, but I've lowered it considerably and am happy.

i would think yes, though that seems like a big bump!
especially if inquiries are from word-of-mouth

but that's just my thoughts

oh, and I have to say i took a quick peek at your site - nice looking work!

tnis0612 wrote in post #14796459
So since March 1 we have gotten 26 total inquiries/emails (14 since June 1) and 12 have booked (7 for 2012 and 5 for 2013), 8 have not, and 6 we are still in active talks with within the last 2 weeks. That's a 60% booking rate.

Based on those stats if i'm shooting for 20-25 weddings a year would you say those bookings are coming too easily? I'm thinking yes and am actually considering bumping up to $2400 from $1800. Crazy?

$2400 up from $1800 is practically nothing. People probably won't even notice a difference and your bookings and inquiries probably won't even go down. $3000 would be a significant jump.

picturecrazy wrote in post #14797391
$2400 up from $1800 is practically nothing. People probably won't even notice a difference and your bookings and inquiries probably won't even go down. $3000 would be a significant jump.

really? a 33% increase seems high to me;
but that's why i'm here, to learn the error of my ways.

There are two reasons I change pricing.
1 When I want less work.
2 when I need more money.
This may sound a little backwards but basing your pricing on what the average studio charges or what the average couple budgets puts you in a big pool.
Think of it this way. If you are on the high end of the market you have less competition. If you are in the average area of the market you have the most competition.
It's a balancing act and you need to keep in mind that you are creating a referral list from your past clients. Clients that paid on the lower end of the market tend to refer couples in that same price range.
Set your prices early in your career at what you want to make then don't expect to be able to change them more then 5-10% every year or so.

I aim for the top third of the bell curve in my target market. Some will love your work but can't afford it, some will scrimp and save to book, you, and some won't bat an eyelash. I don't want every bride, but I don't want to turn away most of them either. Its a fine line to walk really, and alot of it really depends on your market.

simple supply and demand

Thomas Campbell wrote in post #14791770
Don't base your business on unscientific surveys.

^^^^^
THIS

We research research research our areas. WE advertise with a bridal magazine and i have access to wedding industry reports which break it down on how the dollars are spent. They are accurate. We priced ourselves to market to 80% of the market for our state.

Had too many referrals and booked out first year at 25-- our goal . The 2nd and 3rd year with this company we modified and refined what we did so that we are marketing to brides that are willing to spend a certain amount as a base for their photography needs. The inquiries went down but the bookings were better quality weddings a brides that were better to work with and fit into what we wanted to pursue.

For 2013 we have modified again so tat we hit more brides in the upper end of the price bracket we are marketing. We also started going after some of the upper end of the market for brides that will spend more money. That's about 18% of the market in our state that spend over $3000.00 for photography services.

The quality of your work should determine your price in my opinion....just be honest with yourself...you know what is reasonable for the work you put out and what's not.

I think your wedding packages should start at $2,250 just like these good shooters.