5 days ago

How To Solve The Biggest Problem With Pricing Photography

Pricing photography is the topic that Rosh and I discuss in his latest video.

Pricing your photography (or any service or product for that matter) can be tricky. I'm not talking about understanding the cost of doing business (CoDB), where you know how much it costs you to produce what you sell - that needs to be understood before you can see how you break down your pricing. NPPA has an online calculator that is a tremendous tool to help you figure this out.

Many other factors that go into determining what you should charge (CoDB plus profit plus production specific costs), what everyone else charges, how what you bring to the table impacts your pricing and why some photographers can charge less than others and make a larger profit (while delivering superior images) if they are smart about keeping their overhead low. 


Last week Rosh Sillars (@RoshSillars) invited me to be a guest on his photography pricing channel and talk about how I structure my pricing - not that this is anything new, I've been talking about using this pricing strategy for years - but you can watch our discussion here:

Problematic pricing perceptions

The biggest problem I've consistently seen in pricing is based on a perception on the side of the client and the photographer. 

There are two common pricing philosophies in professional photography: either you charge a day rate or bill by the shot. Both of these are charged in addition to the fixed expenses of a shoot, such as locations, assistants, crew, models, etc. (Read more about how to estimate an advertising photoshoot in this post.)

Day rate pricing disasters

Day rate: charging a set fee for a specified length of time, usually 8 - 10 hours, regardless of how many images are created in that time.

I don't know if you've ever experienced this, but I have: 


A clients has been talking about a certain amount of shots when we were estimating the production and we've been anticipating to shoot lets say 20 shots. But those twenty shots magically turn into 25, 30 or more shots.

I don't mind shooting a few extra shots in a day, but at some point the quality of the images will suffer, when you've planned to create 20 and you end up shooting 50 in the same time. 

Per shot pricing problems

Per shot: charging a set fee for each image, regardless of how much time it takes to produce.


I see the most potential problems with this pricing strategy: on the one extreme the client will want to spend as much time on each shot, while the other extreme is the photographer who wants to shoot as many images as possible. At least that can become the perception.

If we stick with the example above let's take the same production that should take one day to create 20 images. If you take either extreme to the absurd you'll see my problem. Image a client insisting on you spending one day on each photograph for 20 days or a photographer that wants to bang out the 20 images in an hour. 

Here's how I have been successfully pricing my work for the past 2 decades:

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a couple of weeks ago

Service matters: Q & A with Community Member Pascal Depuhl on QBCommunity

Quicken features Miami based product photographer Pascal Depuhl, Photography by Depuhl

What’s on your mind right now? We know folks who work for themselves have plenty to say about the business of doing business. That’s why we want to share your insights, ideas, and best practices. Today, we’re spending a few minutes with Pascal Depuhl, a photographer, and videographer who’s also an active member of this community.The last time we spoke with Pascal, he explained why his professional title at Photography by Depuhl is “Chief Mindchanger” and why he believes we all have a moral and professional obligation to give back.

Given Pascal’s focus on doing good, it was no surprise we caught up with him as he was recovering from jet lag after a whirlwind trip to Nepal. That’s where he’d been working with an organization dedicated to helping remote mountain communities get access to life-saving medical services. Pascal tells us why and how he got there. He also shares an unexpected realization that changed the way he thinks about and provides customer service.

Pascal, tell us about your film project in Nepal.

A helicopter flies the team into the remote mountains of Nepal.

Follow my IG feed for more photos from Nepal.

I was filming a documentary about a non-governmental organization (NGO) in a remote region of the Himalayas. When I say “remote,” I‘m not exaggerating. People in these villages have to trek for seven days through insanely rough mountains and valleys just to get to a bus stop. From there, it’s a 15-hour ride to the nearest hospital. Given these conditions, it’s no wonder the life-expectancy of a child under eight is just 50%.

This NGO organizes helicopter evacuations for villagers with medical emergencies and sets up outposts offering basic medical treatments and service. The group also helps villagers navigate the hospital system in Kathmandu.

What led you to offer your services to this inspiring organization?

I believe all of us – visual content creators, accountants, you name it – have innate abilities and skills. When we’re lucky enough to do something we love, and we’re good at, we must give back. I love being involved in projects like this one every few years. I arranged this trip to coincide with an assignment I was on in Asia for a different client. Since I was already on the ground, I knew my travel expenses would be minimal. I found out about this NGO and offered my services in exchange for covering basic costs.

For me, the goal is to balance commercial clients with projects like making this important documentary. Of course, when I’m shooting in Nepal, I’m not marketing my business or working for a paying client. But I think the trade-off is really worth it.

You’ve been running your own business for 25 years. What are you doing different these days?

Horst Schulze speaks about ServiceI don’t believe in change for the sake of change, but a recent experience has made me think about my customers in a whole new way.

I was behind the camera during a presentation at a medical convention by Horst Schulze, the former president of the Ritz Carlton. He explained the most important thing every great company does is not finding new customers. The number one thing is to keep the current customer.

When I was at the Ritz, I experienced the hotel’s amazing customer service myself. After the talk, I thought about what I do to keep my clients happy. I realized it’s never been my top priority. So, I started thinking about the small gestures I could make, things that don’t cost a lot of money or take much time but really add up.

Not long after, I had a shoot with a client who was driving in from two hours away. I knew she had to get up at 4 a.m., so the day before, I asked her how she likes her coffee. When my client arrived on site, I greeted her with a hot cup, made just the way she likes it. This gesture took zero effort on my part, but my client was so pleased, she couldn’t stop talking about it!

That’s a great story. How are you continuing to incorporate this new approach to customers?

Now I keep service at the forefront. I find myself constantly thinking ahead so I can anticipate the need of my customer. This kind of thinking helps clients engage better with my brand. But fundamentally, it’s not about making money. I want my customers to know I genuinely care about them.

Here’s an example. Recently, I was sharing the Ritz Carlton story with someone over lunch and saying how much I’ve learned by reading about the service culture at the Ritz-Carlton, The New Gold Standard: 5 Leadership Principles for Creating a Legendary Customer Experience Courtesy of the Ritz-Carlton Hotel Company. After lunch, I immediately ordered the book online and had it shipped to my friend’s home the next day. It just felt like the right thing to do.

Another shift is the way I work with the contractors and freelancers I hire for a shoot. Now, before each job beings, I let the crew know my philosophy about making great service a priority. I tell them the client needs to be blown away. Since everyone on my team represents my brand, it’s important I set clear expectations so we’re all on the same page.

None of these changes is huge. But simply being aware of the importance of customer service really does make a lightbulb go on – and then it stays on.

Before you go

What changes have you made in the way you think about, and offer customer service? We’d love to hear your story!

 


This post was originally published in Quicken’s Quick Books Community.

3 weeks ago

How not to roll out an Upgrade – a lesson from Expensify

This morning there was a message on my SalesForce Expenses tab, where Expensify and SalesForce work together. “We have updated our Salesforce integration” it read “and encourage you to log in directly using our website going forward – www.expensify.com.

I was looking forward to how my favorite expensing tool had made my life even easier, but what I found was quite the opposite:

The links on the pages were dead.

Expensify Support told me basically, that unless I was a paying for FinacialForce I could no longer integrate Expensify with SalesForce. And FinancialForce is much too expensive to implement for a small business like mine.

However, the worst was that there was no way back. I can not add accounts or opportunities to Expensify, since up to a few days ago SalesForce did all that, and it did it beautifully (actually I thought the update Expensify had touted would finally do away with the need to sync it with SalesForce every time a new opportunity was added.)

So today I have spent all day trying to find a way to keep my Expensify/SalesForce integration alive, but it seems like Expensify killed it.

With no warning.

No lead time for us to fix it. Worse, I can’t work it at all, because the link to SalesForce is broken.

So dear Expensify, next time, give us some notice. Just take a page out of SalesForce playbook – they send us emails and notices 6 months ahead of a change and show us how to implement or adjust for them.

Right now, please at least create a video/blog page that walks us through step by step how to reverse and reassign all accounts, opportunities, etc – basically how to do everything by hand that SalesForce used to do. If there is an automatic way to import the hundreds of accounts and opportunities, please let us know, if not, please create one. Now.

In the future (hopefully the very near future) I wish you would allow us to keep the integration that worked just a few days ago. There’s no way it can be hard to give us that option again.

As for me, it looks like I will be spending another day wasting time to figure out how to use Expensify in my small business. I think I can also downgrade back to the team level from my corporate level since the only reason I paid the extra money was for the SalesForce integration.
___

I’ve been singing Expensify’s praises to many small business owners, when I speak at conferences like WordCamp Miami, or when I write about small business efficiency on this blog and even lauded Expensify’s SalesForce Integration as late as last Friday, when I was flown to Dallas to talk about running an efficient Small Business at the Dallas Entrepreneur Center.

I love(d) the ability to pull up a SalesForce account in Expensify and seeing only opportunities that relate to that account.

It made my life as a sole entrepreneur so much simpler.

But this whole “update” has left me with a very bitter taste in my mouth.

 

 

However, we can always learn from these kinds of disasters, right?

How do you communicate with your clients when you change a service that they come to rely on?

Hopefully, you give them some time to implement or prepare for the change and don’t just drop it on them like Expensify did.

When do you consult your clients and ensure ways to mitigate any changes to their business processes.

Hopefully, you listen to their concerns and work out a solution or at least some how-to guidelines to make their lives easier, not more convoluted and difficult, like Expensify did.

Why price does not drive quality service (or how United Airlines still hasn’t solved their mistake)

An unsolved mistake United Airlines made tarnishes their brand

How two brands solved their mistake (or not)

(and why a third brand actually solved a mistake that wasn't theirs)

Have you ever made a mistake? How about one that directly impacted one of your customers, clients or guests? We've all made mistakes, but it's how you deal with them that's the real important issue.

You'd think the more money you spend the better service (and the faster mistake resolution) you would receive. Well, turns out nothing could be farther from the truth. Let me tell you my experience with two airlines I had last month. Both are US carriers. Both made mistakes. However, that's really where the similarities end. 

If you know anything about providing good service to your customers, then you know that mistakes are one of the best opportunities to make a positive impression on your customers. Actually it's not the mistakes, but how you handle them that makes or breaks the relationship with your client. 

[Side note: Ever since I've heard Horst Schulze, the former CEO of the Ritz-Carlton, speak about service (read more on that in "What I learned about service from a wise hotelier"), I've become very interested in watching how the brands I use provide customer service and am working hard to build a customer service focused company myself.]

Mistake #1: United Airlines loose my bag for 7 days

United Airlines mistake turns into a major hassle for their customer

United Airlines mistake turns into a major hassle.

Mistake #1: I booked a business class ticket to Asia on United Airlines (@United). Price of the ticket $2,445.76. Multiply that by three for the rest of the team that is flying with me and we're spending close to $7,500.- on that flight. When we arrive in Saigon 5 out of 6 checked bags don't make it. Even though they are tagged 'Premiere Service' and are supposed to be off the aircraft before any other bags. 2 days later 4 out of the 5 missing bags make it to the hotel, but the 5th bag -one of my bags- takes a full week to get to my hotel. But it's not the mistake that makes me upset with United Airlines.

Mistake #2: Spirit doesn't issue promised travel vouchers

Mistake #2: I booked a flight for my wife and daughter to evacuate before a hurricane hits Florida on Spirit Airlines (@SpiritAirlines). Price of both ticket $318.11. Their connecting flight in Houston is overbooked, so they decide to give up their seats for a free travel voucher and a flight later that day. Houston had just been hit by a hurricane a few days earlier, and Spirit's systems are down, so all of this is being done by hand. When my wife checks a few days later, there are no travel vouchers to her name and the call center tells her that their records indicate she was on the Spirit flight, even though Spirit paid for a change to fly them on United. 

It's not the mistake that gets you

OK, like I said mistakes happen - we all make them - it's in how you solve them that makes the difference. In the interest of full disclosure, I personally have made the exact mistake that United had made, when I worked for an airline in college. I routed a bag onto the wrong flight and my boss at the time sat me down once they figured out what had happened and explained to me the inconvenience I had caused one of their customers. I never made that mistake again.

  

  

quote-left

"A key principle in fixing a problem is to resolve the customer's sense of injustice–of having been wronged or let down." write Leonardo Inghiller and Michah Solomon in their book Exceptional Service, Exceptional Profit: The secret of building a five-star customer service organization. "You can find a way yo restore the smile to almost any customer's face, wether it's a free upgrade or a more creative offering.

Let's look at how these two companies address their mistakes. On the face of these two examples, you would think that United would be much more interested to solve a mistake they made to a $7500 customer than Spirit would want to solve a mistake they made to a $300 customer. Well I was surprised too. Here's what happened:

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a couple of months ago

The one trick no one tells you that let’s you get through security–fast!

the trick on how to get your gear through airport security fast

"Please remove your shoes, belts, coats. Take out your laptops and place them in a bin." If you fly at all you are very familiar with this refrain at the TSA security checkpoints.

If you've done any flying for work recently, you know that the name of the game is speed. If I can pay for pre-boarding or a better class of service, so that I can have my bags stored quickly and efficiently, I'll do that gladly. However removing my laptop, 3-1-1 bags, belts, shoes and anything else does not help you get through security quickly.

I just got back from flying around the world. Literally. (You can check out photos from my #aroundtheworld trip on my Instagram). And let me tell you security in some of the 8 airports I flew through is not the same as in the US.

Security is not the same around the world

In Kathmandu, some guy who's not even wearing a uniform waves you through even though you set off the metal detector. He looks upset when you think about removing any metal objects you might have forgotten in your pockets.

However, in Doha, it's a whole different ballgame. The security after immigration is similar to the States, but there is a second screening at the gate, which is way more intrusive. I'm flying back home from filming in Vietnam and Nepal when I got to experience this screening. In other words, I'm traveling with two camera bags full of  gear. Much of it electronic.

Remove all electronics, wait what?

"Please remove all electronics from your bags for a hand screening" I am told at the checkpoint. 

They want all cameras (that's the DSLR cameras, GoPros, drones, …), laptop, hard drives, audio recorders, color meters, external viewfinders, lithium batteries, remotes, wireless transmitter, and receivers, … anything that's bigger than a cell phone and has electronic components.


All of those get sealed into a plastic bag after being inspected by hand and I am handed 6 or 7 bags of equipment that was now not protected in any way so that I can walk to the scanner and have these items rescanned.

I finally am able to talk them into helping me carry the gear to a table so that I can put it all back in its place in my ThinkTank bags.

"Hey," you think, "that doesn't sound like fun, but I only fly domestically in the US, so that's not gonna happen to me."

Not so fast!

Not so fast. In late July the TSA announced that it was running a pilot program in 10 airports, where all electronic gear bigger than a cell phone would have to be removed from carry-on baggage.

And trust me, you do not want to have to unpack and repack your fragile and expensive gear at a busy airport security checkpoint. (It took me almost half an hour in Qatar to get through the gate security checkpoint.)

Here's the solution

Fortunately, TSA gives us a solution. Here's what their press release says: "The stronger security measures do not apply to passengers enrolled in TSA Pre✓® who are using TSA Pre✓® lanes."

TSA Pre✓ is a program you apply for online. TSA does a background check on you, you come in for a 10-minute in-person appointment pay $85 for 5 years (that's less than $20 per year)  and you never have to take your shoes off at the airport again. You can apply for TSA Pre✓ here.

But there is an even better option:

GLOBAL ENTRY

For an extra $3 per year ($15 bucks for 5 years), you can apply for Global Entry. It does everything you get with TSA pre✓, plus when you enter the US, you go through a very short biometric customs and immigration line that takes about 5 minutes to enter the country. Apply for Global Entry here

Believe me, it's worth every single one of those three dollars.

a few months ago

The secret of how to beat an expensive one-way ticket #AroundTheWorldTravelTip No.1

Put together a one-way airline ticket or three and you're around the world

Around the world on a one-way airline ticket

In September I get to fly around the world. I’ve never done that before. Needless to say, I’m very excited! Yes, this is for work, I’m filming an annual meeting of a large company in Vietnam, but being able to travel like this is one of the reasons that I love my job! Now I’ve been traveling for work for that past 25 years across 5 continents (I haven’t been to Australia or Antarctica yet). However, this trip almost didn’t happen, because of a one-way airline ticket, that was just way too expensive!

Put together a one-way airline ticket or three and voila - you're around the world

This trip is posing some unique problems. I’m filming for two different clients, one is a paid job – the annual meeting. The other is a pro-bono personal project, so coordinating travel dates, flights and budgets is a logistical challenge. Oh, just in case you’re wondering pro-bono means I work for free, but the client is still paying all my expenses.

From now until I return home in late September I’m going to be sharing what I’m learning on my blog, and you’ll be able to follow my trip on the blog and on my Instagram account, but let me share one trick with you now, that I learned yesterday:

How to beat the expensive One-Way ticket

round trip vs one-way airline ticket pricesHere’s a flight that’s similar to mine. Each leg of the round trip ticket will cost around $3,700. If I take the same flight outbound flight as a one-way airline ticket, the price for that one flight goes up to $5,900 -! That’s an almost 60% fare increase than the exact same flight on the same day when purchased as part of a round trip airfare.

Makes no sense to me, but that’s how it is. In my case client ‘A’ is paying me for round trip business class airfare to Vietnam, where we are filming for a Fortune 500 company. Client ‘B’ is paying my airfare from Vietnam to Nepal, where I’m filming the project with a humanitarian organization – this project will be similar to the first documentary I filmed.

On Wings Of Hope tells the story of a little boy in Afghanistan, who has his head split open when a motor cycle crashes into him. With no medical treatment available, he will die in the remote mountain village, unless he can be medivac-ed out into Kabul …

one-way airline ticket pricingSolving the expensive one-way airline ticket dilemma

I could just extend my round trip to Vietnam to include the second job’s dates, but I thought that it may be possible to fly out of Nepal. That way I could continue my trek westward, circumnavigating the globe: #bucketlist.

My problem was that I didn’t want to spend almost the whole round trip cost of $7,400 on a $5,900 one-way airline ticket. Doing so would leave me only $1,500 to pay for my trip home. Here’s how you beat the expensive one-way fare. Look at the picture again. The airline wants you to book a return flight. But nobody says that it needs to be in the same class of service. Yup, I booked an economy ticket home for $448. That means my inbound trip now costs $4,120, leaving me $3,280 dollars for my trip back heading west.

Well, now we’re talking. I can find a flight via a lot of different countries back into the US for that kind of money. And I get to fly all the way around the world. All I have to do now is pick the airlines associated with my favorite frequent flyer program.

Choose your frequent flyer program

Oh, speaking of frequent flyer programs, the second leg of my flight that originates on United is with one of my programs frequent flyer programs. All you have to do is call up that airline. Ask them to credit the leg that you’re flying on their airplane to your frequent flyer program. They’ll be happy to do it. If you don’t the miles end up in my United Airlines mileage account and I usually don’t fly them.

Oh and in case you’re wondering, I’m not flying for 4 consecutive days to get around the globe. That’s how much time I’ll be flying in airplanes over the span of the 3-week project.

It’s fly – film – fly – film – fly.

My September sounds like a MasterCard commercial:

Airlines I’ll fly: 6
Distance to be flown: 22,620 miles.
8 flights, 9 airports, 6 countries.
Total time flying: Over 4 days (50+ hours)
Number of film shoots: 2
One #AroundTheWorld adventure!

Having a job (and a family) that lets you do this: #Priceless

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