[frankda4]

Hi guys!

I hope i can help you out with this idea of lowering rates with respect to the poor economy.

I'm an economics major, and have helped out with a successful family business for many year(all my life). I have also started a company recently and have been concerned about the current economy.

So here is the basic academic argument. As we face uncertain times, inflation will become more prevalent. The price of every day things will go up all around us. Food, pens, paper, light bulbs, ect. This Will also includes cameras and things we use to do business (in the photography world). I think canon recently marked up there prices 15% or something like that a few months ago.

As a result a professional photographer will have to pay more money for that camera, lens, computer, CS4, paper, prints, ect.

As a result the photographer will make less money, and will have less to spend on food, housing, paying of the loan, ect.

The photographer will have to make one of two reactions: quit photography in order to spend more time working on something that will make more money, OR rase the prices.

Now its not that simple...

Photography is considered a luxury, and as people tighten there belts they are willing to spend less on luxuries.
But you might find that if photos are important to some one they will spend the extra money on the photos. Basically the market for photograph will shrink a bit.

If you can rase your price and your still making lots of sales. Thats good! Keep up the good work.

I would not recommend lowering your prices unless your not making sales. If your not making sales you probably need to change something else about how you do business, not just the price. (But that just depends, and is your judgment call)

But I like to stay positive and encourage people to work hard and strive, you can over come the bad economy!

PS. this is not based no research, or data. So i'm talking from a academic point of view. Its a way of thinking more than a factual answer. Also keep in mind unless your Alan Greenspan, your not going to understand the economy 100%.