Pricing Your Products and Services
Setting a price for your products and services is more than finding a happy medium between one that’s too high that you lose customers or too low that you’re giving away the farm. You also must add some legal factors to the equation. The safest way to establish your fees is to have a reasonable and consistent basis for what you charge. Here are 10 pricing tips to help you get started:
o If you advertise a price, charge that price.
o You can make your prices “subject to change,” but you can’t use them to bring a customer in and then charge a different fee.
o Don’t charge some clients one fee and other clients a different fee for the same services.
o Check with your state authorities to determine the maximum interest and penalties that you can charge for extending credit.
o You can ask what other photographers charge for products and services.
o Some resources to determine what others are charging are the Stock Photo Price Calculator at http://photographersindex.com/stockprice.htm, www.fotoquote.com, and www.hindsightltd.com/products/PriceGuide.html.
o Avoid antitrust activity by not telling other photographers what to charge.
o Definitely don’t make agreements with other photographers to fix your prices.
o Don’t run promotions offering to pay sales taxes on goods without clearing that with the Federal Trade Commission and your state authorities.
o Don’t advertise products and services that you can’t deliver.
Setting your prices can be tricky. If you’re fair about it, you’ll get all the business you can handle.
Take my advice; get professional help.