14.01.10
How To Price a Job
There is no better feeling than when a client contacts you, says how much they like your work and that they would like to meet to discuss a job they need a photographer for. However, the previously established protocol of commissioning has long since gone; just because they like your work doesn’t mean that they are going to like or understand your fee. So how can you make sure that you don’t scare your client off with your financial demands, or find yourself working at a rate that doesn’t work for you?
The first point to bear in mind is that clients have a tendency to be a lot less experienced than you are, even if they are working for an established company. Your role is not only to make them feel as if you’re working together on compiling the complete budget, including your fee, but also to hold their hand as you ascertain what the client wants and how they want it shot.
Make sure that your client feels that they are in control and give them a good feeling about how you could work together. This may all sound a bit ‘touchy feely’, but bear in mind that the person commissioning you will not want to make a mistake with the budget they have been entrusted with, and needs to feel confident with you as a person as well as a photographer. Others may be pitching for the same job and could be cheaper than you, so it’s important that the client feels you are going to take care of them throughout the shoot process. When it comes to deciding your fee, break it down into three distinct areas: your photographic fee, the usage fee and the total budget – put simply, the maximum they will pay! When it comes to setting the fee, be aware that there are certain break points with the pricing of any product and, in this case, you are the product. That’s why you see prices such as £9.99 and £99 – they are specifically pitched to keep within a break point. For a small to medium-sized client, you should see the break points as £500, £1,000, £2,000, £4,000 and £5,000.
If you decide that the job including all costs should be £5,000, for example, but are concerned that this will be too much for the client, decide what your minimum fee should be, then calculate any extra costs. Ensure that the total fee comes in at about £4,750.00. It may not be all that you want, but it fits comfortably under the break point and should give you a decent profit. The reasoning behind avoiding a round figure is purely psychological.
When you submit the estimate, make sure that you fully explain how you came to the final figure. You may need to include usage fees in this, so be aware how, where and for how long the client intends to use the final image. Usage fees can vary enormously and many clients will be unaware that they have to pay them. The commonly held misconception that ‘as they have paid for everything means they own everything’, has to be clarified very carefully. As for what to charge, it often works well to suggest that they can have one year’s usage for the final agreed budget, but they would need to renegotiate a fee for further usage after the first year. This works well for the client because they will then be able to divide the costs over two separate annual marketing budgets.
With luck, if you are completely transparent and honest with your client, they will not try to negotiate and will appreciate you all the more for the extra work you have put into compiling the estimate. They may well have to get it signed off by their boss, and if they can explain the estimate clearly, you are making them look good, too. And that’s the key to getting the deal done.
Grant Scott
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