are you lowering your rates because of the poor economy

[thenimirra]

I've been thinking I may need to lower my rates in accordance to what's happening with the American economy overall. I have some photos on display at a restaurant in town that are available now for $75 (with a $50 frame included) but they haven't moved. The store clerks say tons of people have asked about them and taken my business card, but I worry that the price may be too high and that I need to lower them.

Then I start looking at my prices overall and worry that if I couldn't even afford a portrait shoot with myself, how could anyone else afford it either at this time?

So...has anyone else thought about or chosen to lower their prices now?

[Vimsplace]

i am stymied on this
i am just getting started and feel like i am going against the current
i decided the best way for me to start was to put my photos [4x6] on blank cards with envelopes
i sell them for 4 bucks each
it's a card that's also a gift as the photo can be framed in standard 5x7 frame
as for your projects
i've heard that raising the price can make it seem more of a find and make it move quicker
not sure that will work anymore
someone also said to take the easiest routes in these changing times
not sure what that is although i DO know what hard/difficult feels like
one step at a time
i think we'll all be fine
Vim

http://vimsplace.com

[Jim Poor]

I have been incrementally raising my prices about every two months.

In January, my private sittings are going up 95% and my group / charity sittings are going up 150%.

So far, the more I charge, the more I have sold, but that could be a function of spreading popularity and growing name recognition in my area.

[justlearning]

I haven't started to charge yet so I really don't know the answer to that but I didn't think your prices were too high?

[windrider86]

I hate to admit this but I have. I have noticed that several people who i work closely with have also lowered thier prices as well.
I would rather lower them and sell them, than leave the prices high and not sell at all.
I have also been doing smaller pieces as they sem to sell quicker than the larger ones.

[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%.

[Lebowski]

Originally Posted by frankda4

As we face uncertain times, inflation will become more prevalent. The price of every day things will go up all around us.

Unless there is deflation.

Originally Posted by frankda4

Also keep in mind unless your Alan Greenspan, your not going to understand the economy 100%.

I think quite a few people would suggest he didn't understand 100%.

But, joking aside, you're dead-on that the mix of products people buy could change. I wonder if higher-end studios will feel the pinch, while Walmart/mall portrait places get more business? Could semi-pros pick up business from the pros (at a lower price)? That could be good for some people around this forum...

[thenimirra]

thanks for the information! one side of my brain says you are right about those economics and that I would never make it on my photography business alone....but the other part of me that is devastated by so many of my friends being laid off (as well as the potential of losing my own job considering how bad off the media industry is right now) has me thinking other things.

Would I be able to pay $75 for one of my own framed prints? I start to think: $75 can pay for several weeks worth of gas, etc. etc. It's like my whole mindset has changed about how I want to spend my money. I wish I could tap into more affluent clientele so I wouldn't feel compelled to lower my rates. I've been offering sales this month since it is the holidays...it's so tough out there.

[private]

Originally Posted by Jim Poor

I have been incrementally raising my prices about every two months.

In January, my private sittings are going up 95% and my group / charity sittings are going up 150%.

So far, the more I charge, the more I have sold, but that could be a function of spreading popularity and growing name recognition in my area.

Jim FFX County is a total different animal. We have not been hit as hard as other parts of the country (all the gov't workers and the military) I have been also raising my prices (not as much as you have), and like you, I have been selling more. If you look at the "established photogs in our area, they charge a lot (IMO) so people are used to that. But when they see $10 for an 8x10 their eyebows are raised and they assume lower quality - even though its better that the $25 job down the street.

[windrider86]

Things have been slowing down in this area for some time. Just as an example, I did a show this summer that traditionally I have made better than $2500+ for the weekend. This year I made $500.
I live in a town of less than 10,000 people. And the town is very poor on top of that. Add those ingredients in and you'll find one of the reasons I dont do a lot of portraits, weddings and such. And the ones I do i can either charge less or dont do them at all. I chose the little something over a big fat nothing.
Most if my income comes from working with magazines and galleries out of the area or I probbaly wouldnt be doing this at all