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Thread started 28 Apr 2008 (Monday) 19:47
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Is 30% Kickback fees too high?

 
ben805
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Apr 28, 2008 19:47 |  #1

Last time I did a free year book photoshoot for the preschool where my wife work. They were happy with the result and now they wanted to hired me to do the Kingdergarten graduation in few weeks. I don't know what and how to charge so they gave me the pricing package and stuff from last year. The letter sent by the last photog to the school shows a little over $3000 of total sales being made for that particular session, and the photog was paying $1000 as commision back to the school so I guess this is the kickback fees or whatever then? My wife spoke with the principle and she confirmed that they do charge 30% commission. But I am allow to price slightly higher than the previous photog because they really like my work. But my question is, do you think 30% of commision being too high? or is it doable...


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Mike ­ R
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Apr 28, 2008 20:06 |  #2

I think 30% is too high. I offered one HS 20% (sports-action shots) only because I live in town, it's the towns first HS and they almost had to go the way of "Pay to Play" because of budget problems and I wanted to contribute. Originally I told them 10% and they were happy. At a HS in another town, I don't offer any kickback and they are already confirming teams for next year. When I was starting up and researching Kickbacks, it seems as if 10% is the amount paid by most, when it's the only way to get the job.
Do you think that it will lead to other work?


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Bearmann
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Apr 28, 2008 20:43 |  #3

I have no expertise in this area, but why isn't the previous photographer coming back? Have they had a different photogrpher every year? Things that make you go Hmmmmm?


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waynedsargent
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Apr 28, 2008 20:54 |  #4

30 is waaaaay too high!!!!!! 10 max.


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MJPhotos24
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Apr 28, 2008 21:42 |  #5

When I left the restaurant tonight I asked for 30% back because I gave them business and would give them a good review to my friends, they threw me out.


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ben805
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Apr 29, 2008 00:05 as a reply to  @ Bearmann's post |  #6

Mike R wrote in post #5423237 (external link)
I think 30% is too high. I offered one HS 20% (sports-action shots) only because I live in town, it's the towns first HS and they almost had to go the way of "Pay to Play" because of budget problems and I wanted to contribute. Originally I told them 10% and they were happy. At a HS in another town, I don't offer any kickback and they are already confirming teams for next year. When I was starting up and researching Kickbacks, it seems as if 10% is the amount paid by most, when it's the only way to get the job.
Do you think that it will lead to other work?

This is a private preschool with about 100 kids, was told that their parents are quite willing to pay anywhere between $30 to $90 depending on the package. I saw some samples they got from last year and the year before, some 4x6, 5x7, and few 8x10, they looks like the typical cheap walmart style portraiture, very flat lighting, busy and distracting backdrop, some of those kids sorta disappear into the background, not the kind of result that I am willing to pay for. LOL So yea I think there is a money making potential, but 30% sounds a bit high to me.

This is going to be my first time charging for money so maybe I should just suck it up, do the best that I can to wow them, and hopefully the kid's parents would come back to have some private session for their family or whatever, THEN, I can charge accordingly without paying for commission. I guess this is also an opportunity to spread my reputation around town, and add this session to my portfolio afterward.


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EnronRocks
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Apr 29, 2008 00:44 |  #7

30% is too high, way too high. I personally feel they are trying to take advantage of you. Although there is really no way to find out how much the old one was giving back, but it would be good to know. Send a email or call the old guy and see what he says/does.


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deadpass
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Apr 29, 2008 00:49 |  #8

As long as you're able to hand out your business card and tell the parents your available for private shoots as well then it might be worth it, however 30% is very, very high.


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cdifoto
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Apr 29, 2008 00:53 |  #9

ben805 wrote in post #5424612 (external link)
This is going to be my first time charging for money so maybe I should just suck it up, do the best that I can to wow them, and hopefully the kid's parents would come back to have some private session for their family or whatever, THEN, I can charge accordingly without paying for commission. I guess this is also an opportunity to spread my reputation around town, and add this session to my portfolio afterward.

If you kick ass on the cheap wal-mart priced photos, what incentive would they have to come directly to you at your higher rates?

I'll give you the answer: none.

If you do wal-mart style portraiture (ie click click NEXT! & budget prices, quality notwithstanding) AND hand out your business cards when doing it, you're going to be branded a wal-mart style photographer and that's what people will expect, prices included.


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ben805
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Apr 29, 2008 01:26 |  #10

EnronRocks wrote in post #5424755 (external link)
30% is too high, way too high. I personally feel they are trying to take advantage of you. Although there is really no way to find out how much the old one was giving back, but it would be good to know. Send a email or call the old guy and see what he says/does.

Initially I thought the preschool was going to pay me for a sitting/session fees in hourly or flat rate but I was wrong. LOL I guess from a business point of view that make sense, they bring me the business so they should take a cut, but dayuumm.....30%!?! I had already found out how much the previous photog gave back in the past few years, 30%. The principle gave me a copy of last year receipt...see attachment that I scanned in. :shock:

So, after the commission, this local studio only made about $2500...minus labor, prints, and shipping cost. Man, glad I don't make my living being a photog otherwise I'll be eating ramen noodle EVERYDAY! :lol:


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ben805
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Apr 29, 2008 01:37 as a reply to  @ ben805's post |  #11

Here is the kind of pictures they have been getting in the past from different photog/studio:

I guess you get what you paid for....


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ben805
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Apr 29, 2008 01:38 as a reply to  @ ben805's post |  #12

And this, is what I had to offer to them for free last time.....

Nothing fancy, just a muslin backdrop with a single Alienbee B400 and softlighter 48" umbrella, taken with 40D + 24-105L


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cdifoto
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Apr 29, 2008 01:49 |  #13

Charge double the previous photog's rates, at least. And make sure all the subjects wipe the lint off their shirts.


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ben805
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Apr 29, 2008 01:49 |  #14

cdifoto wrote in post #5424785 (external link)
If you kick ass on the cheap wal-mart priced photos, what incentive would they have to come directly to you at your higher rates?

I'll give you the answer: none.

If you do wal-mart style portraiture (ie click click NEXT! & budget prices, quality notwithstanding) AND hand out your business cards when doing it, you're going to be branded a wal-mart style photographer and that's what people will expect, prices included.


The principle gave me permission to charge higher rate than the previous photogs/studio after the last freebee session I did for them. so I think maybe I should go ahead and raise the overall price to maybe 40~50%? with today's gas price on the rise and everything else cost more, not sure how much higher the kid's parents willing to pay. the school is still going to pocket 30% regardless though....


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tim
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Apr 29, 2008 04:17 |  #15

I would go in with a reasonable base package, and give the school a percentage of that. I would do extra sales separately and that shouldn't be part of the kickback IMHO, and make sure you have a decent markup. 30% is VERY high, the MAX I would pay anyone is 10%. I just don't need the work that badly. Your shots are a lot better than the other guys.


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Is 30% Kickback fees too high?
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