are you lowering your rates because of the poor economy

[thenimirra]

yep great ideas too. I was just reading an article that talked about lowering the cost of doing business....that is something everyone can do for sure

[Swisstony10]

This is definitely a great thread. Since I started using this site, I've been getting a lot more confident in my ability, and I'm now determined to make some money in 2009 by taking pictures other than of members of my own family.

This thread has definitely made me think of a lot of things that I hadn't considered in terms of turning a hobby into a business (even though I'm only planning for it to be a part-time thing and will be keeping my day-job) - I plan to incorporate as many of these cost-reducing sale-enhancing tips as possible. I'm hoping to start out with things running as lean as possible.

Thanks everyone!

Russ.

[arcusx]

I was listening to the radio on the way to work yesterday, and someone had somehow done some survey of prostitutes. Being a "luxury" expense, I see parallels. What the survey found was that "low-end" prostitutes were seeing an increase in business. "Mid-ranged" prostitutes were seeing significant declines in business, and "high-end" prostitutes were seeing no change. As for the "high-end," the people who can afford them are not being affected by the poor economy, and thus the high-end prostitutes were not affected themselves.

So, it could be as much of a demographic that affects your photography sales as the economy itself.

I had gone to a woodworking (another popular, "turn a hobby into a business" hobby) semenar held by David Marks, of DIY's Woodworks. He talked about how he never really made money in Woodworking until he created high-end, "artistic" pieces. The difference really surprised him.

Finally, the wife and I have friends in the wedding photography business. They have always been "high-end," as long as we've known them, and they have never seen a dip in sales. They only have free weekeneds if they choose to.

- John

[mightymarce]

I'm not in business myself so this advice isn't backed up by anything, but perhaps it may be useful. My step-sister sells Mary Kay cosmetics, and apparently one big piece of advice that gets passed around there is to never lower your prices-- give free gifts or other discounts, instead. Lowering your prices devalues your product. If you instead give a special deal or discount, customers feel like they're getting a good deal.

Expanding this, if you lower your prices that then becomes your new "normal" priceline (and what people expect) and eventually you'll have to raise them again, which is a pain and people hate seeing prices of something they've used before, go up. If you instead offer discounts-- 20% off a sitting fee, free 8x10's, etc-- it's still easier on their wallets, but people understand that they're temporary. Better still, b/c of that they may feel more motivated to book you before your discounted deal expires. No messy having to go back later and raise your rates-- they're still what they've always been, just with a temporary bargain deal.

Hope that makes sense.

[CrashTECH]

Originally Posted by mightymarce

I'm not in business myself so this advice isn't backed up by anything, but perhaps it may be useful. My step-sister sells Mary Kay cosmetics, and apparently one big piece of advice that gets passed around there is to never lower your prices-- give free gifts or other discounts, instead. Lowering your prices devalues your product. If you instead give a special deal or discount, customers feel like they're getting a good deal.

Expanding this, if you lower your prices that then becomes your new "normal" priceline (and what people expect) and eventually you'll have to raise them again, which is a pain and people hate seeing prices of something they've used before, go up. If you instead offer discounts-- 20% off a sitting fee, free 8x10's, etc-- it's still easier on their wallets, but people understand that they're temporary. Better still, b/c of that they may feel more motivated to book you before your discounted deal expires. No messy having to go back later and raise your rates-- they're still what they've always been, just with a temporary bargain deal.

Hope that makes sense.

Excellent advice!