One of the things I want most for my fellow photographers is that they understand how to value their work more appropriately. Nothing breaks my heart more then when I see a good (often great) photographers undercharging for their services.

The uncomfortable reality is that many photographers think they’re making money, but when they do the math (if they ever get around to it), they realize they’re barely breaking even, or worse, they’re paying out of pocket.

And unfortunately, for as long as I’ve been a photographer (hint: I learned on a Canon AE1 in high school) there has never been an industry standard of pricing.

Pricing shouldn’t be a guessing game. In my Pricing & Packaging For Brand Photographers workshop, I walk you through the exact steps to determine your numbers and build value-packed offers.

Why Pricing Based on Industry Averages is a Mistake

The fact is that when you’re just starting out, or pivoting into unknown territory, your natural instinct is to look at the industry around you to see what everyone else is charging. But without a crystal ball, you really have no idea why your competitors are charging what they do.

By basing your own prices off of the market alone, you’re essentially shooting in the dark which leads to constantly second guessing yourself because you don’t have the confidence to stand by your prices.

Your expenses, business model, and financial goals are unique, so your pricing should be too.

That’s not to say that your market is unimportant, but too many photographers start by looking around them instead of considering their own pricing needs. Your overhead is going to be vastly different if you’re renting studio space by the hour rather than leasing your own space.

You also have no idea what kind of hidden expenses or debt someone might be operating under. Don’t fall into the trap of thinking that a photographer who charges thousands of dollars is profiting thousands as well. Many small-businesses operate on revolving credit and high operating expenses while taking home just enough to keep the lights on.

The Cost of Doing Business (CODB) Breakdown

The best way to price your services is to first get a clear picture of your numbers by doing a Cost Of Doing Business Analysis.

What is a CODB?

A CODB is a simple calculation that helps you determine how much you need to charge to stay profitable.

CODB = (Total Business Expenses + Your Salary Goal)/ Number of Shoots Per Year

What to include in your CODB:

• Fixed costs (gear, software, insurance, marketing, education)
• Variable costs (editing, outsourcing, travel, studio rentals)
• Personal income goals (don’t forget to pay yourself!)

Example:

• Total Expenses + Salary Goal: $80,000
• Estimated Shoots Per Year: 40
• Minimum per Shoot Price: $80,000 ÷ 40 = $2,000 per session

This means you must charge at least $2,000 per session just to break even. Anything lower = you’re paying out of pocket.

How Your CODB Guides Your Pricing Decisions

Once you know your CODB, you can confidently set minimum pricing for your sessions as well as quickly create custom quotes for jobs you may not have priced before.

If I know exactly how much my time is worth I can take on any type of gig that comes my way with confidence and ease, allowing me to work in slower seasons by offering services outside of my niche if I choose to.

Not only that, your CODB helps you avoid:

• Underpricing and struggling to sustain your business
• Overpricing in a way that doesn’t align with the value you provide

In my next blog, I cover how to structure your packages to create high-value offers while keeping your costs low, ensuring you make booking an easy decision as well as create a profitable business model.

Guessing your prices isn’t a strategy. Knowing your numbers gives you clarity and confidence and allows you to create a seamless experience for your clients that makes sense for your business.

Too many photographers are afraid to “overprice” their work becuase they don’t understand even the base value of their services, meanwhile, they have no idea that they’re not even charging enough to break even.

This dynamic is what leads to industry frustration and ultimately burnout.