How FIRM are your prices?

I have been playing around with a new pricing structure since the fall/winter tends to be slow. I wanted to see how it would pan out. Basically, I charge no session fee and factor all my profit into the ala cart items I sell (prints, cards, albums, digital files, etc). I toyed around with a "no minimum order required" clause to generate more business and it has been successful. Typically for my base 1 hr photo session, with viewing gallery, people have been ordering between 100-250 worth of products per shoot.

One customer has been VERY good with referrals, and I offer a 25 dollar credit on their next shoot if their referral that books a shoot. Well, I am on the third friend down the line and she only wants to spend 75 dollars but "likes" about 140 dollars worth of goods. She asked if I could use her friends referral towards items on THIS shoot (not the next shoot which is how it works) to help her financially, and if I can work with her on pricing. I don't know what I do. Obviously this has been a good customer, but I am shooting 2 more of her friends next week and they will want the same deal I give her. Her order is on the low side too, if it were more I would be more willing to give her some extras. I don't want to insult her budget though, I want to work with her, but i don't want to screw myself into giving the same deal to everyone down the line.

What would you do?

I provide better service to repeat customers (such as being more flexible for consultations and session times) and I've got a small set of low-cost bonus gifts that I'll enclose as surprises when I deliver products to repeat clients, but I don't cut prices.

I may offer a payment extension to a client that obviously really wants more than she can sneak past her husband in one pay period, but I don't cut prices.

And then there are charities and business complimentary situations in which the work is free or essentially so. But I don't lower prices.

If you are providing the proper value at the proper price, then reducing your price reduces your value.

I feel the same way, I just don't want her to be disappointed and want to work with her in some way. I'd be more willing to throw in some extras if the order was around the 150 dollar range, but a 75 dollar order is really low (although I did specify no minimum). I am just having a hard time crafting a response. They are getting a tremendous value, free session and each final retouched image is only ten dollars (facebook size).

What type of bonus gifts do you offer?

I don't charge a session fee, but I do require a minimum service--that way when the session is booked we both know what kind of service and what kind of money we're talking about on the back end. How can a business agreement really proceed otherwise? I collect the first portion of the price when we book the session; this is not a "session fee," it's a down payment on the final product.

I don't really see any way of ensuring that there are no later unpleasant surprises for either party, except by both knowing from the start of the relationship what minimum service and what minimum fee is being discussed. That's how everyone else does business. For instance, when you get into a taxi, it tells you right up front the least you're going to pay.

For bonus gifts, the standard is that I give social networking copies of all images purchased as prints. For seniors, I print "calling cards" (that is, personal "business cards"--a very old school concept that I'm bring back) and bookmarks. I use overnightprints.com for the calling cards--very inexpensive.

I use a slideshow for my sales presentation, so I'll also include the slideshow on the same CD with the social networking images.

There are all kinds of photo-knick-knacks available, but I try to keep them photographic.

We have an understanding, I forward them my price list of ala-cart items, so they know what things cost, the only difference is I don't have any minimum order, so yes I can be burned with someone that only buys 30 dollars worth of stuff (that has not happened), but that's part of my no obligation guarantee that they will love the pics.

I think I will stand firm and see what happens.

My guarantee is not "no obligation," but it is "100% satisfaction." If I am not able to give her a product that she fully loves for the price, I will refund every cent that she's paid. I will provide free re-shoot sessions, and even up to a year after delivery, I will exchange a wall portrait for a different size, charging or refunding the difference in price.

However, I do require her to put some skin in the game along the way.

Yeah, I can appreciate that model, and my transition to it. People like the idea of no money down though, and it has been successful for people that were on the fence in the first place.

The market these three 3 girls are in right now is modeling, so they are not interested in prints, they want digital files (low res) for their modeling portfolios and to use for social networking.

My prices are fairly firm and I use the word fairly because anyone trying to do business in the current economic climate knows that they have to have a little give and take. There are always creative things that one can try in order to hold onto business. I have used a referral system before but it seems that the people making the referrals prefer to get cash as opposed to future credits. The latter is preferable but if their referral pans out I don't mind opening the cheque book. I do things like a ascending discount based on sales amount. For corporate customers I give a discount if they pay their invoice within a certain period. One is only limited by their own imagination and creativity. I don't spend alot of time trying to lure portrait or wedding customers with future credits. They are not going to be coming back for awhile and the discount based on volume purchased works just fine.

The bottom line is that one's work should get you the assignments and not the price you are giving them. No doubt that this is going to impact it and that is why it is important to know what your competition is doing so that you are in the ballpark pricing wise. Each person will have their own take on what is right or wrong in the pricing arena. If it works for them then no one should care. They may want to copy that process which I am fine with.

My pricing is firm but I may throw some extras out like a free print or more camera time than was originally discussed.

I pretty much told her that my pricing was firm, but she was about 40 dollars away from a 10% discount I offer with an order of a certain size so suggested she go that route for maximum value.

I hate to be the bad guy, but these girls are fishing for the best deals......even asked if the one's $25 referral bonus that I offercould be transfered to items purchased on her shoot.

We'll see what she decides. I know she loves all the images, but claims can only afford to pay for half.

Tough times or not, people still budget for what they want and will still buy what they want. Apple still has people waiting in line for everything they turn out, Canon and Nikon have no problem selling cameras. Nike's still deep in ducats.

People make themselves afford what they want to afford.

Truth! And the word will spread fast!

It's not a perfect solution, but how about half now & half later (with the 2nd half print delivery)?

USER876 wrote in post #11119777
I know she loves all the images, but claims can only afford to pay for half.

A used car salesman introduced himself to me with, "We call your kind the 'Too Highs'."
Huh?
"No matter what we offer, you'll always reply, 'That's too high!'"

If the venue is unique, or the style is something I want - I'm willing to budge on price to get what I want out of it.

But as per my website, my starting prices are clearly stated. That filters those who can't afford me.

I think what happened is that I did my job! She didn't feel she was that photogenic and was amazed at how many she loved and can't narrow down to what she can afford, she wants everything. I prob screwed up putting too many in her proofing gallery....I try to limit it to 50, but there were so many good shots I put 100 in.