Deals and the Minimum Pricing Calculator
There’s nothing wrong with making a deal when both parties mutually benefit.
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There’s nothing wrong with making a deal when both parties mutually benefit.
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Robert, sorry I didn’t see that you responded. YES you absolutely want to be priced above the CL market. That is not a world you want to compete with (unless while you’re building your biz you’re taking gigs here and there just for case. It’s full of bottom dwellers and a race to the bottom. You’d have to shoot a wedding on the clients SD/CF cards and then hand over the cards at the end of the night to be profitable on some of those prices lol.
Set your prices and find your clients that match those prices. They are there! In almost every town there are people that spend money on things that are important to them. Don’t worry about those that are priced below you.
If you want to get more detailed in this discussion (numbers wise) I would be glad to help, hit me up on FB or IG.
Question, in a few of the previous videos you’ve talked about deals when just getting started and just getting people in the door, is it acceptable to lower your margin considerably to make those deals happen? I only ask because even my MVP package which I thought was priced rather high for my area is too low and leaves no room for deals or any type of get them in the door pricing.
Hey Robert, if I can speak for Pye I would say that the prices you’re setting through this class are your prices going forward. But in the meantime you also have to get coal into the fire so that you can keep the doors open. That is what he’s talking about with the CL deals and the extremely low prices. Sometimes you just need to job right now knowing that you are building to something much better. For example my pricing is skyrocketing soon, but for now I’m still happily taking gigs at shoot-n-burn prices because I have to keep fuel for the monthly biz expense fire. Hope this helps man!
Thanks Scott,
I was just worried that in order to meet the margin I have to go well above the price of others on craiglist. I’m in that place where I need to be so I threw the margin out the window just to get gigs in the door, but I was curious what Pye thought. If we truly can’t meet the minimum margin, without being priced out of the market (in this case the craiglist market) is it worth it?
Hope that made snese….
Question regarding the business workshop section 201, (yes I know I was in the chair in the room but due to some family issues photography has been on a back burner.)
Here’s my question…
The MPC makes total sense from a standpoint of calculating your package price based on your labor hour costs, but how do you factor in your CODB and your COGS into your a la cart and your package pricing?
Thanks so much for all the insight you are sharing in these courses. You’ve opened my eyes to what I need to be doing as a small business owner. At first, I found starting the business to be quite overwhelming, but through these courses, I’m developing more confidence and affinity for the business of photography.
From a teaching standpoint, Pye, you kill it! Your breakdowns are on point. I appreciate the bulleted lists and points of emphasis you highlight in your text. I can’t wait to get started on Courses 3 and 4. Thanks so much. Take care.
Okay I get it it now! Thank you. Loving the course
I have a question for that minimum pricing calculator.
Say you want to pay yourself 50 dollars an hour for a 3500 dollar wedding. After you enter in the info into the MPC, it says its too low, even though you may still be left with a 1500 dollar margin. I’m confused because you still made the money, the business still profited, but it says too low? Is that too low for a deal? or is it trying to show me that I am still making a 1500 dollar margin?
Nic, it’s based upon the margin that you can customize. The only reason it’s returning “too low” is because the margin percentage is higher than the final $1500 left over. Adjust your desired margin based on your experience and current goals, it comes with the numbers that we’ve set up for our studio.