the Economics of Photography

[abortretryfail]

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the reply...

Dear Bride,I am a wedding photographer in the Erie, PA area. Wedding season only last about 4 months here, so I photograph an average of 20 weddings per year for an average of $2,500/wedding (which totals about $50,000/year).

• That being said, I am a small business owner, so I pay all of my taxes, totaling about $15,000/year, which leaves me with a gross income of around $35,000
• Of that $35,000 I pay $600/month in rent for my small house and garage which I converted into my studio (which is where I would be editing your wedding images).$35,000 – $7,200 = $27,800
• Then I have my car, which I would use to get me to and from your wedding, which I pay $400/month for the lease, plus $200/month in car insurance. $27,800 – $7,200 = $20,600
• To get to your (and my other brides) wedding consultation, second wedding pre-consultation, the wedding itself, and to and from the printers I spend $840/year in gas money. $20,600 – $840 = $19,760
• I also have $500/year insurance in case you sue me, or if any of your drunk guests would happen to break any of my equipment. $19,760 – $500 = $19,260
• You also probably found me through my website, which I pay $30/month for hosting, and another $30/month so that you can view your photos online and share the images with your friends and family. $19,260 – $720 = $18,540
• Or perhaps you found me through my advertisements in the newspaper or local bridal magazines, or a bridal show that you attended that I paid to have a booth at.$18,540 – $1,000 = $17,540
• I also pay $250/month for my own health insurance in case I were to get hurt at your wedding. $17,540 – $3,000 = $14,540
• I pay $200/wedding for a second shooter for your wedding, so that you can have more images and different angles, as to make sure you get the best images possible at your wedding. $14,540 – $4,000 = $10,540
• I also need to have a new pair of shoes ($100) every season because my shoes get worn out and dirty from season to season. $10,540 – $100 = $10,440
• I need high speed internet so I can upload all of your images online, my home phone for my business and my cell phone so I can communicate with you. $10,440 – $2,500 = $7,940
• Oh yes, and I also pay a lawyer to make sure my contracts are iron clad and an accountant to make sure that I am paying all of the taxes I need. $7,940 – $500 = $7,440
• Sometimes I attend workshops and seminars to teach me how to better my business, and make my client happier (that would be you), as well as keep up on the trends and learn new techniques so that I can make sure you have the best quality images available.

That would technically leave me with about $7,000/year to feed myself, buy groceries, pay for my heat and electricity, clothe myself, etc. But, usually I end up reinvesting whatever I have left on upgrades and new equipment:During your wedding, I bring my professional equipment that I use so that I can make sure you have the highest quality images.

• I have 2 Canon 5D Mark II cameras (because you always need a backup in case of a camera malfunction, which would ruin your big day’s photographs) which cost $2,500/camera = $5,000
• I also have quality lenses which can capture your special moments in low light situations:
  Canon 24-70 f/2.8 lens = $1,200
  Canon 70-200 f/2.8 lens = $1,300
  Canon 50mm f/1.4 lens = $500
  Canon 100mm f/2.8 macro = $600
• …and I have speed lights to catch the fun moments at your reception:
  2 x Canon 580EX II = $1,200
• Also multiple battery backups and memory cards, lens filters, light stands, umbrellas, light boxes, external battery packs and a bag to carry everything in = $1,500
• Because this is equipment, sometimes I need to have it serviced or cleaned to make sure it is all working properly = $200

After spending 8-10 hours at your wedding, I then come home to my home office and spend about 20-25 hours editing your images, creating your album, blogging about your wedding, posting pictures on Facebook, ordering you prints and burning your DVDs.

• I edit your photographs using a 27-inch iMac computer = $2,500.
• I edit your photographs on Adobe Lightroom ($200) and Adobe CS5 ($400 for the upgrade and $900 for the new program).
• I print your DVDs on a printer which costs $300 and which uses $200/year in ink.
• I buy the DVDs and jewel cases you’re getting printed for $300/year
• I archive all of your photographs on 2 x 2TB external hard drives = $500.
• I also back up all of my photographs online so if there was ever a fire in my office, you would never lose your photographs = $400/year.
• I also have office expenses as far as buying paper, staples, envelopes, packaging, filing cabinets and files, etc…
• I also spend time and money ordering your prints and albums, paying for shipping, going to the post office etc.

All of that being said, I’m usually in the hole at the end of the year, and take on many family portraits, senior portraits and corporate jobs in order to make ends meet.Photography is my passion and my livelihood, and it is also expensive. Yes, it seems like a lot of money for one day, but one day isn’t all we spend on your photographs or on our business. You will spend thousands of dollars on a wedding dress or flowers or a venue or on catering which you are going to have for only one day, but your photographs will be the only thing you have to remember that one day for the rest of your lives.I’m extremely insulted by your craigslist post and hope this sheds a little light on why we charge $3,000 for one day of your memories that are going to last you forever.

– Nikki Wagner, Photographer
~ Why Wedding Photographers’ Prices are

[slidingdoors]

NIce post.....really touching..that is why if u really in to this business...dapat passion jd nimo..dli lang kay sa uso2x..hehehehhe...

[teeemoy]

Well said. Problem here is, the photographer is using mostly high end equipment. I think he/she can still make ends meet with modest equipment, IMHO.

As for me, I seem to make due with my 60D, 50mm f/1.8, 28-70L, and I rent a 70-200L. Also, the computer I use to edit is an assembled Core2 Duo which costed me around $1000 years ago. I'm thinking of upgrading but I won't be spending more than $500.

In fairness though, I'm an all around techie, so I know what computer parts to buy that will fit all my needs, and I'm also a web developer at the same time, so I can still make ends meet even without photography clients. I don't have insurance on any of my equipment, so if something breaks, I'm screwed. I don't have a lawyer to draft me contracts, so I'll possibly get screwed there somewhere down the road, but it's a risk I'm willing to take.

As for our fee as wedding photographers, we try not to undermine other photographers. And if potential clients ask why these photographers charge an arm and a leg, we tell them that these people do this for a living and have invested a lot in their craft. I also frequently use the phrase, "You get what you pay for." If the client still wants to go with us, we take them. But I believe our ethics are sound.

Thank you, Eisen for posting this. I'll be showing this to potential clients who ask the same questions.

[abortretryfail]

This is one reason I believe we should have a sub-forum on the business of photography as sometimes photographers have the same mindset as the brides.

I use to be a full time photographer but now I also have a full time job in the IT business. So, yes, I got something to fall on when there are dry periods with no clients. But my photography business is still treated as a business.

Even if you're just in it to make a quick buck during the weekends it still should be treated as such... a business.

Camera gear is a big investment... an investment that also depreciates with every click of the shutter and every pop of the flash. So, it's not like, "Hmmmm... I make ₱ 500/day in my current job so scoring ₱ 6,000 for a day's shoot is just awesome. I could buy a new camera in a month and a half!!!"

Let's break it down... your camera kit cost you ₱ 40,000 for body and basic 18-55 lens with 1 year warranty. So, after a year you better have gotten your Return Of Investment (ROI) back. 12 months in a year times 4 Saturdays a month... that's 48 days. ₱ 40,000 ÷ 48 days is ₱ 833.33. That's how much you need to save from each and every shoot towards having enough money to buy a new camera in case yours breaks down after the warranty expires.

₱ 6,000.00
- ₱ 833.33
₱ 5,166.67 left

That 18-55 lens ain't getting you anywhere and since you're just a hobbyist you shell out ₱ 7,000 for a cheap telephoto zoom also with 1 year warranty. ₱ 7,000 ÷ 48 days is ₱ 145.83 per shoot

₱ 5,166.67
- ₱ 145.83
₱ 5,020.84 left

It's a wedding... I need a flash. Well, you're just a hobbyist so you buy something cheap for ₱ 7,000.
₱ 7,000 ÷ 48 days is ₱ 145.83 per shoot

₱ 5,020.84
- ₱ 145.83
₱ 4,875.01 left

You need batteries for the flash and an extra battery for the camera if you hope to last the day. A set of 4 rechargeable AA batts with charger is ₱ 1,500 plus you need an additional pack of 4 batts which is an additional ₱ 600... ₱ 2,100 altogether. The extra camera bat is ₱ 800. All in all batteries will cost you ₱ 2,900. ₱ 2,900 ÷ 48 days is ₱ 60.41. You're not gonna be able to charge on the go so you need a backup pack of conventional alkaline AA bats for your power hungry flash. ₱ 60.41 + ₱ 150 = ₱ 210.41 per shoot

₱ 4,875.01
- ₱ 210.41
₱ 4,664.60 left

Don't rush on into battle without any ammo... an 8GB memory card is ₱ 1,000. You're a "professional" and shoot RAW... ₱ 1,000 x 4 8GB cards is ₱ 4,000.00. You're ROI for that is ₱ 83.33 per shoot

₱ 4,664.60
- ₱ 83.33
₱ 4,581.27 left

Now you're all set and the big day has arrived! You pay a cab ₱ 100 to get to the hotel to start off with the bridal preparation. Lucky you! You got a ride with the bride to the church but after the ceremony you're on your own. Another ₱ 100 for a cab ride to some far off reception site.

PARTY!!! PARTY!!! PARTY!!!

The night's done and you need to spend another ₱ 100 for a ride home

₱ 4,664.60
- ₱ 300.00
₱ 4,300.60 left

AWESOME... you've earned yourself ₱ 4,300.60 for a days work!!! Wait.. you're not done yet. You spend 3 weeks processing and editing all those images. You don't factor in the cost of the computer since "your regular job paid for that" And you skip out on the ₱ 30,000 fee for Photoshop since you were able to download it with your ₱ 1,000/month DSL connection

Wedding package? I'm supposed to give the couple something, right? It's a "cheap package" so 200 prints for the couple. You know the peeps at Mitsubishi SM and get ₱5 per print. 200 x ₱5 = ₱ 1,000.00. What about the rest of the photos? You managed to fill up just 2 8GB cards. You better make a backup and that takes up 4 DVDs. Plus you give 2 copies of the events photos in jpg to the couple. 6 DVDs x ₱15 = ₱ 90... ₱ 1,090.00 in all. You had to take a cab to SM so ₱ 100. You spend another ₱ 100 in cab fare to deliver the wedding package to the couple and sweat nervously as they ask to go through the photos while you're there. Pepto Bismo at the pharmacy on the way home is ₱ 100.

₱ 4,300.60
- 1,390.00
₱ 2,910.60 left

You earned ₱ 2,910.60 for a days work!!!! But didn't you just spend 3 weeks slaving away in front of a computer? 21 days + day of wedding = 22 days of work. ₱ 2,910.60 ÷ 22 days = ₱ 132.30 per day of work. Isn't that something like minimum wage? And was it worth 15 days of little sleep as the only time you could work on those images was after your office hours? How much coffee would you need to buy to handle going through everyday with only 3~5 hours of sleep. And that's 4 weddings a month we talking about here.

What? You didn't set aside money for your camera gear and spent all the money on yourself? Say you go through each wedding with 1,000 shots. In 48 days that's 48,000 shots in a year... not counting all the other shots you accumulate in your hobby. Now, what's the life expectancy of your shutter? Don't expect your ₱ 25,000 or ₱ 40,000 to still be working well after a year.

[fingolfin]

.. mods note: abortretryfail, i edited your thread ( if you don't mind ) to a more appropriate title since you made a request:

This is one reason I believe we should have a sub-forum on the business of photography as sometimes photographers have the same mindset as the brides.

.. let the discussions be civil.

[alucard_x]

I applaud your post boss abortretryfail and thanks for sharing this. For me I still can't get my mind set on doing it full time.

[abortretryfail]

this is from something I wrote a few years back on another thread regarding how much a photographer earns...

Here's one thing I wish I found when I first started out as a working photographer... it's the answer to an age-old question I kept asking which no other photographers would give me a straight answer to... the same photographers who would later chide me when the rates I finally gave out were considered too low... so.. How do I price my work?

After looking around I found out how to calculate the Cost of Doing Business.

Basically, you add up the cost of your gear, bills, rental, salaries, and other overhead costs/investments and then divide that by the estimated number of days you actually expect to be shooting. The resulting figure is your cost of doing business (CODB)

That would give you a guide on how much you need to charge per shooting day to at least break even.

Remember... the resulting figure is a guide of your operation costs for one shooting day.

It IS NOT the figure you charge to your client. Experience, expertise, skill, difficulty, risks, usage rates, and other factors like production costs (transportation, salaries of assistants, etc.. basically your other expenses for the shoot) will play on how much the final rate will be for that project. Charging anything lower then your CODB means you shouldn't be in the business as soon you will be out of business.

So for example, say you have a regular job and want to do photography work part time shooting on weekends and just want to earn an additional 10,000 a month. So four weekends in a month do you just charge 2,500 per shoot? If that's the way you think then please stop now and learn the Cost of Doing Business:

First add up what you've invested in so far...

45,000 = cost of camera kit
15,000 = cost of flash
5,000 = cost of basic strobist kit
10,000 = cost of cellphone (hey... you need to be in touch somehow)
75,000 = total investment

This is an important number as gear breaks down so you would need to build this up again to cover repairs or gear replacement. From my experience a camera body will only last two years of good use. By then it's showing a considerable amount of wear and tear with parts refusing to function.

Now you need to divide this by the number of days you will be actually earning money.

So you hope to book one shoot a week so that's 4 days of shooting a month... 48 days per year (4 x 12)

75,000
÷ 48 days
1,562.50 per photography day needed to get ROI

PLUS your salary as a photographer... here's your additional 10,000 a month

10,000 monthly salary
÷ 4 photography days
2,500 per day


1,562.50 ROI for gear
+ 2,500 salary
4,062.50 total cost per photography day

Don't forget other expenses...

500 = assistant
500 = transportation allowance
500 = food allowance (in case the client doesn't feed you)
500 = misc. (batteries, lens wipes, etc...)
2,000 additional expenses

4,062.50 total cost per photography day
+ 2,000 additional expenses
6,062.50 daily total Cost Of Doing Business

So if you charge anything less than 6,062.50 per shoot then better stick to your day job. Just to break even you would need earn 24,250 per month... 291,000 a year to keep your business going. Set a photography rate of 7,500/day or so for profit margin.

Not bad for 4 days of work? Well, you need to spend the other 26 days per month looking for clients to hire you for those 4 days... or you won't have anything to shoot. Not to mention all those days spent on your computer processing photos from these shoots. And remember... you're still keeping your day job.

Quite a lot just to earn 10,000 a month as a photographer

Now this is a VERY CONSERVATIVE example. This does not include your phone bill, expenses for marketing, insurance, a computer, electricity for using your computer to edit/burn photos, and a whole lot more!!!

And much more if you plan to do this full time.

here's a link to the CODB Calculator I made that you can download and calculate your own rates...

business study_120418.xlsx

Originally Posted by peewee_toot

how about kung per photo?

There are price guides available to photographers for usage of photos based on size of print, duration, circulation, where it is to be published, and so on.

Check this website for example with calculators for Advertising, Editorial, and Corporate use:

Stock Photo Price Calculator

Unfortunately it's not Philippines based but it gives you an idea.

Now where does usage come into play for commissioned work?

CODB + USAGE = COST OF PHOTOGRAPHY

And for weddings, special events, and portrait sittings

CODB + PRINTS, ALBUMS, etc... = COST OF PHOTOGRAPHY PACKAGE

The problem with usage is not many clients in Cebu will accept having to pay for usage so sometimes you should add it in to your rate instead. Getting a client to pay for re-use of the photos they paid you to do is even a lot harder.

And remember THIS IS NOT FOR "WORK FOR HIRE" SITUATIONS. Work For Hire is when the client makes you sign a contract transferring COPYRIGHTS TO THEM. If this is the case your charge should be higher... maybe basing it on estimated potential profit you could have earned from reselling the photos. Avoid this when possible... protect your copyrights always.

[super_jehan20]

Nice thread.... wheeew lamats maka balo naku pilay i charge,,

[abortretryfail]

here's the link to the Cost of Doing Business Calculator I promised to share...

business study_120418.xlsx

[abortretryfail]

the above calculator is geared more for freelance photography
but you can customize it to fit your business
there's room to add in items like salary for fulltime assistants, drivers, etc...