Hey guys, I know this may sound strange, to you but here’s a 411 about your vendors and prices. I’ve said several times about pricing out vendors. There is a certain cost in making a business successful. It’s about being fair, but being fair to the business to make profits otherwise you are going to find yourself sitting a month or even a week before the wedding trying to replace vendors you may have lost.
I was contacted this morning, and Monday for a problem with a vendor. I spoke with this client October 2009. She initially came to me about hiring for her wedding as the photographer. I couldn’t reach her after my quote to her, thinking she wasn’t happy with the price. My prices are fair for what I provide, Free engagement, Full copyrights, and I shoot with full frame cameras which cost me (4,000.00 each). I probably should be charging 5000.00 for services, but I don’t. They start at 950.00. The bottom of pricing compared to my competition. One thing that I had to balance was making a living, growth of my business and as well customer satisfaction and continued added features so your day can be eventful and as well memorable. However, after an exhaustive attempt to contact her back, emails, phone, messages etc. I decided that she found another photographer. That ultimately came true on this phone call from her today. Sadly, but efficiently I save EVERYONES number in my phone for the added benefit so I can prep myself when someone calls, and I can address their questions easily with familiarizing myself with who it is from the caller ID. It’s been a very successful tactic that I do.
So the client asked if I was available for her date, I opened my calendar and went to her date, which was changed from the current. Thankfully I have it available. She went with another photography company as I mentioned I thought she did. That company is local, and charges around 500.00 for an ALL day event, no limit of time, copyright, and an album. Now lets say granted the album cost 40.00, prints cost 25.00 to put in the album. Subtract the 65.00 off of the 500.00 and you are left with 435.00. YES, I know 435.00 is a LOT of money to be making in one day. But think about it. It’s not one day of work. Color correcting, editing photos, burning them to disc, and then shipping or delivery.
I have put in a 1.5hr per 1hr ratio of shooting. This means, for ever hour of shooting, I have 1.5hours of processing time afterwards. So based on 10 hours, I will have 25 hours of work invested in your wedding on my side. 17.50 an hour is what that turns out to be. Ok that is STILL good money I understand. However, have you thought of the business yet? Remember ALL day long means all day. I was basing it on 10 hours. So the client is actually paying for 25hours of work based on 10 hours, and also a getting products that should have a markup on them for replacement and errors that may occur at a later date with reprints, and simply profits. It does take electricity, computers, and maintenance, licensing, storage, and lastly personal time to run a business. The invested cost to you that you are paying, an investment is to create lifelong memories of a one time event.
If you are coming into the selection of your vendors as “money first” then you are definitely going to be spinning the roulette wheel of “will they be there when your wedding comes here” as this client has opened up to me as being true. Look at the totality of the providing factors. What do they offer, How long do they do it, are they doing it fair for them self, does it seem like TOO good of a deal. Think of when you went to the mechanic. They charge 150-200/hr for maintenance. If they were doing everything at cost, how long would they be there, how quality would their work be knowing they are doing it at the minimum bid. So this in point is a GREAT reason why most business fail, their profit to fairness is so far off and they are just ‘trying to get any work they can’ Quality suffers, and eventually they can not afford to replace their equipment because they don’t budget, and simply can’t put any money away for repairs, replacement, and upgrades.
Simply, this sounds VERY good to you up front, what do you care what they do for the next client, as long as it works for me, and they want to give me a good deal, I’m down for it. But as this client found out, this company is not returning calls, not answering emails, their website is down. Because I am familiar with the company, I decided to call my self. The phone is disconnected, and the website is down. I did a little more research and found the web company hosting. I asked if their site is down on the server, or if its a manual removal since I can’t get a hold of them. She asked me if I was the owner, and said no just a vendor trying to reach them. Her response was, yes we’re trying to get a hold of them too to get their website online. (I imagine that they can’t or didn’t pay the bills) Economy slow or not, this is what we prepare for in the good times, to float the bad times.
But when selecting vendors, and the prices are soo good you jump all over it. Ask yourself will this company be here when I have my date come around. Chances are very slim if everyone else in the industry is doing it double, or 3x their cost. This is a very touch subject to me since, I started out doing weddings with no experience at 400.00 and moved up because of cost and continued client requests, popularity, and losses from damage or replacement photos that got damaged in transit. My cameras have to be replaced every two years with the amount of work I do.
That is My responsibility not the client, but it has to be incorporated into your cost, otherwise the ship will eventually turn upside down when you have to try to pay yourself a salary, and then the 4,000.00 cost of a new camera comes out of the business owners pocket rather than the business, there’s no justification on being able to make that back since the profits from the weddings based on 52 weddings a year, and a profit margin of around 40.00 max per wedding x 52 weeks a year that leaves you with $2000.00 a year in sheer profits IF you worked every Saturday. Subtract that 40.00 from the wedding above @ 10hr, and now the photographer is making 15.00/hr, – the tax, of 20 percent 12.00/hr to run his business, and provide you a quality job. Its an inevitable cycle of about 3-5 years and they are in the hole and no longer in business. So think about cost when you are selecting, no just for your pocket, but is he making enough to survive when my wedding comes out?
Good Prices, mean good deal, but good business? good quality? good chance they will be in business? Decide for yourself…
Thanks for reading!
Mark Dickinson
E-pics to come sooN!
