New year, new prices.... up or down?

[habed]

2 years ago I had a blast doing weddings and other events almost every weekend. I believe I got better since my customers always refered me to new couples and my photos were better everytime. So I decided I was ready to make the next step and last year I increased my prices to target a different market.

The thing is, since I changed my prices and due to the crisis, I only had 2 events during last year's second semester. So this year I decreased my prices almost 30% and so far I booked 2 weddings.

I noticed that many of you have being changing your prices and almost everyone is increasing them...... Doesn´t that affect you in a negative way in this economy?

Being a fotog in Mexico is very hard since equipment cost almost 100% more than in the US (i.e. The Canon 60D I just purchased cost me $1,200 USD in Amazon, here it cost an average of $1,700 - $1,900) and the economy is very weak so you charge around $1,000 per wedding (Believe me, that's a lot of money down here)

Have a good day

[Jim Poor]

You can't just raise (or lower) your prices willie-nillie, you have to have a target market in mind and tailor your prices to that market.

My prices for portraits went up an additional 75% this year, but I knew in advance what my target market would be and what those folks can and will pay.


Does raising prices have a negative effect on business in "this economy?" No, not if well researched and supported by your level of work. How is more money for less work negative?

[funcrunch]

My prices are going up but they were way too low to begin with for the market I'm targeting. Actually I'm keeping my basic event hire rate the same, but decreasing what people get for it; specifically, no hi-res images included anymore. (Thanks in part to advice read on this forum!)

My pricing is based on how much I want to work. I have a target number of jobs...let's say 25 per year. If I charge $800/job and do 30 jobs in one year, I raise my prices the next year based on the demand for my services. If the next year I only do 20 jobs at $1000, then I keep my prices steady and work more on marketting. If the number of jobs drops significantly, lets say to 10, then it's probably time to re-evaluate my business and consider dropping out.

[Niresangwa]

I think the adage that if they really are in love with your work, they'll find a way to pay is still true, though obviously it's under more scrutiny in a down-turned economy.

Have you thought of maintaining the current prices but offering a payment plan or concession that allows them to pay over time? You could establish certain time frames that could ease the burden of a lump sum payment. Whether or not you release the product at certain stops, is up to you.

Personally I would be amenable to a client who suggested this, but would be sure to have firm dates, and that they wouldn't receive anything they could really use until they had completed their schedule.

[Swisstony10]

Here in the UK we're currently enjoying skyrocketing fuel prices, and a brand new increase in VAT (which has just gone from 17.5% to 20%). So far, I'm holding off with a price hike of my own, but it's only a matter of time before I have no choice.

[candleman]

Jim hit the nail on the head.. you can't jump around on the prices randomly with no real reason in the eyes of the consumer.

It's one of the following three things that probably doesn't live up to the price you're asking,

1. Your work

2. the products you're supplying

3. your brandng, packaging and wording


I've been doing a few second shooting jobs with a local photographer, she does relativley high end weddings. The packaging, branding, and products she offers are all catered for those who want a finished product and have the money to spend on extras.

so, re-examne your products, will a wealthy couple really choose the CD and 4x6" prints, or will they go for a Finao 10x14" with parent albums and a dvd slideshow?

EVERYTHING is taylored to specifically target a particular group of people.
you need to decide who that market is.
The back yard small wedding, or the grand Hellicopter arrival on the private estate?

I have chosen to target the mid to low end weddings untill im very experienced, and have earned some money and gear. Then once i'm satisfied with my position in the market i've got a few steps in place to add another target market to my income stream.
Nobody said you should change your business and start from scratch... simply set up a "sister" brand and offer something different to a different market.
Sure, i have "adjusted" my prices by a few hundred dollars, but you can't make huge sweeping chnges. I'm not changing pricing as such, I am however re-structuring my packages to make common requests into a more dedicate intermediate package.

[lonni]

It is bad in the customers eyes to be changing prices. We are in a bit of a bind as our economy isnt great but with the recent flooding no one as the money to pay for photography. Good old suply and demand.

I have had 18 cancelleations in the last week, i gave the deposits back to the ones who asked, they just lost their homes and only have the clothes on their back, so i wasnt saying no.

I decided that instead of changing prices i would offer a discount voucher. The custimer thinks they are getting a bargain and i dont have to change my price to fit the market.

HTH

[habed]

Originally Posted by candleman

EVERYTHING is taylored to specifically target a particular group of people.
you need to decide who that market is.
The back yard small wedding, or the grand Hellicopter arrival on the private estate?

Nobody said you should change your business and start from scratch... simply set up a "sister" brand and offer something different to a different market.

Thanks a buch to all of you for your responses. Cadleman, I think this is the perfect aproach, I already have Depa11 wich WAS a photo and video business and I've been thinking about moving to my name...... So instead of leaving Depa11 behind, that can still be a business targeted to low to medium weddings while my name's business would be targeted to medium/high to high end weddings.

Great idea!!!!