Am I "low-balling"?

I've read a few references on the forum, regarding "low-balling." I was taken aback when I realized that perhaps I was doing this??

I tend to believe I'm still a "beginner" in terms of professional photography. I do charge, as my time and efforts are not only valuable, but can be costly. However, the quality of my photographs are not what other professionals around my area are. They've all been at it much longer than I have. I am still learning - a great deal. I just shot my first session in RAW last week.

When I set my prices, I did not do it with the intention of thinking "my prices will be so low, clients will want my work and not the competition's." I set them lower knowing that my prints will start low-quality and improve (well, hoping atleast) as I learn.

Other photographers may also have more expense involved, therefore needing to charge more. I work from home, so have no rent expenses. I order prints online, so do not have ongoing cost of maintenance on printing equipment. I don't even have professional lighting. I use some lights you could purchase from any well-known merchandise store.

Now that I've been working for a year, should I be charging what the others do so as to not offend them or take their business away? I still don't believe so, but that has never been my intention.

Any thoughts out there on this topic, from the perspective that I have not intentionally set lower prices to low-ball competition??

Do you let your clients know that your prices reflect your beginning status and other photographers in the area with more experience might charge more?

Skrim17 wrote in post #2278471
Do you let your clients know that your prices reflect your beginning status and other photographers in the area with more experience might charge more?

I do no advertising for business and my clients are all word of mouth. Most are friends and coworkers at my full-time job. Those that have made appointments by word of mouth, are told when scheduling, that I have a full-time job. I explain that my rates are lower because it's not a source of income, and because I'm still learning.

Tonight I had two calls for senior portraits. When one gal chuckled at my pricing compared to another quote she was given (which is what prompted me to post this tonight) I openly explained that what she would receive here will be much simpler and less extravagant than the named competitor. That I work with white and black paper backgrounds and a natural muslin. And outside of outdoor shots, I can not offer extravagant backgrounds - the different stairs, painted canvas', built wooden railings, etc.

I feel I'm being open and forthcoming with my clients...

sounds fine then.

as a side, I am old and not up on the current HS customs. What exactly are senior portraits? Is this somethign different than a year book photo?

We live in an entrepreneurial society that thrives on supply and demand. Set your prices as you wish, others can tuff it, like it or not. Do what is best for YOU and ignore anyone else. Your family, your needs go above anyone else. Be a capitalists all the way, it is the American way!

Skrim17 wrote in post #2278534
sounds fine then.

Good. Had I done it with bad intentions against the competition, I'd feel guilty. I'm glad I've gotten another opinion. After what I had read (strongly opinionated posts) about this, I was wondering if I was being un-professional.

Same thing as a year book photo. Just different verbage.

joegolf68 wrote in post #2278549
Set your prices as you wish, others can tuff it, like it or not. Do what is best for YOU and ignore anyone else. Your family, your needs go above anyone else. Be a capitalists all the way, it is the American way!

Thank you for your input. Yes, I always want to keep my family first, but looking at both sides of this, I wouldn't want to be on the other side of it - being undercut by competition just because they wanted to. But, that is what Super WalMart and other bulk stores do, don't they? Nothing against Super WalMart...

Do you ever get the idea that you might be leaving money on the table.

As was noted above, we live in a free market society and everyone is free to charge what they want. It is truly a personal choice.

Renumeration has long been based on longevity based analogy. No one gets hired for a job and gets put at the top of the pay scale the day they start. However, when it comes time to services offering, you won't find that many companies that are charging 50% less than the median rates for the area (I use 50% as an example and this might not be too far off for some areas). John Smith starts a plumbing service, does he come in that far below his competitors. My niece married a plumber who doesn't even have his final ticket yet. He does some weekend under the table work and is about 10% what his full time employer charges.

If one is good enough to do photography as a job, whether it be fulltime or part time, then are they not in the league of the community where they could charge the median rates. There is always going to those that are atrociously expensive and those that are ridiculously cheap. We have a studio in the city that I work out of, it is in its 3rd generation (I think, its pretty close either way). Their rates are out of sight and they are booked solid for years ahead for weddings. I must admit that they do very good work though. Putting a personal thought process to service offerings (not necessarily photography but this could apply if I were a purchaser of this service) when I see something that is abnormally cheap I instantly think to myself, what is wrong with this. Does he/she not do good work, is the product relatively the same.

If one was to read through a number of threads in the wedding forum, there has been several debates about the weekend warrior shooters charging less. Some of them position themselves as being the saviors of the wedding photographer consumer in that they are doing them a big favor by bringing in lower prices and/or options within the deliverables. The certainly do bring a new dimension to the marketplace. For the sake of argument lets say the established studio is charging 1000.00 and the weekend warrior comes in and starts charging 500.00. The studio comes down to 500.00, the part timer gives a CD of high res images, the studio matches. What does the part timer do to bring a differentiating factor to the marketplace that separates them from the brick and mortar studio. At some point the prices and deliverables become ridiculously low and there isn't much, if any room for the weekend warrior shooter to move. The yield in the market has become too low for most to stay in it. If the studio owner can manage his costs so that he can stay in at these prices, where does that leave the part time shooter.

Competition is a good and healthy thing. I am not advocating that there shouldn't be any. Bringing new ways of presenting, selling and the delivery of the product is also a good thing. No one ever said that the studio owners knew exactly what is best for the market place.

I would just like to encourage the weekend warrior type shooters to have a vision of where they are going with this. Are they actually leaving the money on the table that they could have gotten in any event. You say that allot of work is coming from co-workers. What do you do when this work dries up. It is going to take more time investment to get the same amount of work. I've been exactly where you are as far as getting all the portraits in the office done. Are you ready to market yourself and invest the time and money that is takes to do this at the rates that you are charging today.

I offer this as some food for thought. Is there a point where we start to pay our customers for the privilege of taking their photographs.

ssim wrote in post #2279437
Do you ever get the idea that you might be leaving money on the table.

It has occurred to me, but my worries are that if I charge more, or too much, they will not utilize my services. They begin thinking "why go to her, with her little home studio, when I can get the same thing at the large studio with all the background choices and well-known name?"

I realize this is where good word of mouth on great service, quality, rapport and abilities comes in. Perhaps I'm not altogether confident in my work yet if I question those abilities to draw business.

Though your entire post is awesome - truly great advice and something to think on, this caught my attention. When I get the impression a client is wondering why I'm so cheap, I start to scramble to "sell" my services - convince them I'm not cheap because I suck. So - hello?! I need to rethink things in a big way.

You've been a GREAT help! I hope others wondering about pricing gains from your post.

Hi Elaine,

How you set your prices is your business. There are dozens of threads here on that subject alone. The fact is you seem to have a lower opinion of your work. Folks that buy photography by the pound are concerned more about price. As you move forward in your career you will want to be chosen for your style and creativity not how cheap you can be.

If you are undercutting other photographers on price alone, please stop. That does mean that you are doing two things, taking away customers from other photographers
for a minor difference in pay and you are cheapening your own work too.

You want your customers to choose you because of your style an creativity not how cheap your are. Regardless of your studio size equipment etc. If your pictures are not that different from what I can get at *mart then maybe you should not be charging yet.

improve your images, join the local PPofA, take classes in portraiture, study your books, mags etc to learn lighting. Ask for help here.

Les

I found early in the game that selling low creates major problems later on as your get more proficient. Price increases have to be justified in the buyers mind.
Remember it is all about PERCEIVED VALUE which includes service and quality not just images on paper.

You may be inexperienced but do not confuse that with being competent. If you produce a good product on time it is worth a given price...period.

Jon, The Elder wrote in post #2290334
You may be inexperienced but do not confuse that with being competent. If you produce a good product on time it is worth a given price...period.

That is a great bit of advice. Thank you for reminding me there's a difference between inexperience and incompetence.

I would say business is business, If you want to undercut everyone else than that is your business. That is what this country is built on. Free enterprise. I think most most photo studios overcharge anyway. Also with the prices of HQ digital Cameras becoming more and more reasonable you are going to see a lot more Amateur photographers entering the business and a lot of them will be very competent. Lets face it you don't have to be a rocket scientist to take good pictures.

If you are getting work by word of mouth then you are doing something right. Keep it up. I love to see competition.

JON

OS220sl wrote in post #2291633
Also with the prices of HQ digital Cameras becoming more and more reasonable you are going to see a lot more Amateur photographers entering the business and a lot of them will be very competent. Lets face it you don't have to be a rocket scientist to take good pictures.

JON

There are also a lot of them that aren't. I'm our high school yearbook adviser as well as a portrait photographer and have seen some positively atrocious images coming from "amateurs entering the business." Perhaps you don't have to be a rocket scientist, but you do have to have some expertise with the equipment as well as something else many newcomers lack...artistry.

OS220sl wrote in post #2291633
Lets face it you don't have to be a rocket scientist to take good pictures.

Herein lies the problem. Anyone can take a picture, only a photographer can capture a memory. There is a huge difference.

You are right that there many people buying the new digital cameras and entering the market. The problem is that they want to earn enogh cash to buy that new lens, the engagement ring for their girlfriend or whatever, they do not treat it like a business and if I am buying a service from someone I want to be treated like a customer.

It is not going to happen often but it will. That "it" is the fact that the new entrant weekend warriors are ill equipped in most cases to handle large events such as weddings. Too many go into these once in a lifetime events with one camera body which is courting a catastrophe. Bodies break, they don't let you know in advance when that will be.

OS220sl wrote in post #2291633
I would say business is business, If you want to undercut everyone else than that is your business. That is what this country is built on. Free enterprise. I think most most photo studios overcharge anyway. Also with the prices of HQ digital Cameras becoming more and more reasonable you are going to see a lot more Amateur photographers entering the business and a lot of them will be very competent. Lets face it you don't have to be a rocket scientist to take good pictures.

If you are getting work by word of mouth then you are doing something right. Keep it up. I love to see competition.

JON

JON

As just one of the many 'rocket scientists" I am really insulted by your statement. I have been a photographer for 30 long and wonderful years.
You have no clue at all what it takes to create and sell wonderful images to clients who know the diff between a button pusher and a real photographer.

It is not now, nor has it ever been in the camera. A camera cannot tell you if the pics you are about to take are going to suck or not. And it's not if they enter the business, but if they last more than a year, or 5 years.

I will help ANY photographer who asks for it, that is how I learned. Even after all these years I see images on this very website that make me green with envy. There are also several folks on this list that are learning, and it shows.
That is what this list is for.

Please show us your fantistic, cheap images.

Les Baldwin