the Economics of Photography

[zarj9er]

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this is thread is very informative to would-be clients and would be wedding photographers. Somehow we can get an insight on how much the cost is on producing that stunning pictures. A lot of respect to those who already made it through the market despite the hard times and lots of luck to those aspiring to be.

[kinlarch]

salamat sa thead nice 1...

[digitalartistbem]

Hay, salamat, naa na jud tawn koy reference sa akong rate.

Pero I have a question about contracts ba....I hope I am on the right thread.

If ang customer ang mag initiate sa transaction, magpa charge ko nila sa akong services...But what if ako ang mag initiate sa photoshoot/transaction, pwede kaha ko nila i charge sa ilaha sad nga mga modeling/talent fee? What if friends2xlng akong pang pictyuran, then nag ask ko mag try2x me ug photoshoot, maka ask na sila ug fee noh?

And if ang customer ang mag initiate sa transaction, ang mga finished products, pwede na nako i post sa akong portfolio, or under agreement na xa sa model/customer?

[digitalartistbem]

Hope somebody can enlighten me...

[abortretryfail]

It depends on the intent of the pictures... or in simpler terms... for whose benefit?

If you approach a client with an offer to shoot for them in that the photos will be for their use... then they will pay you for your service.

If you approach a person to shoot them for your use (e.g. your portfolio, to sell as stock photos or fine art prints) then you pay that person for their service to you.

If a client approaches you to shoot for them... for free or lower than your basic rate... show them the door. Though try and reason with them first.

But there are x-deals, TFP (Time For Print/Time For Photos), TFCD (Time for CD of photos) in which you and a model will offer each other services for free in exchange for photos to be used to update each one's portfolios non-commercially. In case of friends and family... well, yeah... it helps for practice. But try to move them on to things that will really showcase your skill and talent other than just their facebook profile pic.

[sammedriano]

From the sound of it. I better have to set up my mind first hand, whether I'm willing to pay P40k for a dslr to take all the moments that I'm with my family. Or rather get an entry level one which cost much cheaper, yet does the functionality I originally needed it for.

Thanks for posting this thread.

[abortretryfail]

From the sound of it. I better have to set up my mind first hand, whether I'm willing to pay P40k for a dslr to take all the moments that I'm with my family. Or rather get an entry level one which cost much cheaper, yet does the functionality I originally needed it for.

Thanks for posting this thread.

Personally, it doesn't matter what camera you use. I've only had one or two clients that actually asked what camera I use. Most just look at my portfolio then hire me based on my ability.

I started off using a Sony Cybershot...




Then when the prices of dSLR's went down with the first Digital Rebel... the Canon EOS 300D...




I later moved up to a "semi-pro" Canon 40D...


But after carrying THAT around for a few years I wanted to go back to a smaller and lighter camera... which is now...

[abortretryfail]

From the sound of it. I better have to set up my mind first hand, whether I'm willing to pay P40k for a dslr to take all the moments that I'm with my family. Or rather get an entry level one which cost much cheaper, yet does the functionality I originally needed it for.

Oh, and in addition to the above... the CODB factors in the camera's ROI. Or basically the amount needed to replace the same camera or at least a model equivalent to the same amount. If you need to UPGRADE then the additional amount for the higher costing camera would come from the PROFIT which you would REINVEST into your business.

Which is why you need to actually charge higher than your CODB as that is where your profit would be coming from.

[JJBnaj]

Thanks. It is very helpful.

[raingelcute]

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










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.

Thank you for this! This is really helpful. It pisses me off how clients would think that our fee is too expensive.


I once read a status on Facebook:


" Photographers, why do you ask for so much money when all you do is just press a button?"


Somehow, when I read this, it pissed me off. Insulted us in a way.


I commented on it, saying:


" Gear is expensive. Photography is art. Every shutter count COUNTS."


Suddenly, numerous Facebook users liked my comment in a total number of 15. Most of them were photographers.


Thank you sir for standing up for us. This is how we all should be.