As promised, I am going to help you determine what you should be charging. Now before we get into it, there is no standard formula. In the end you need to do what you deem best. Entrepreneurs and freelancers all do business differently, and their pricing formulas reflect this. So, let’s go…
Okay, I am coming at this from a photographer’s point of view. Please feel free to adjust where necessary!
Value your time.
Start with a salary that you know you will need to sustain your cost of living and determine the value of your time. For example:
You need $3000 per month to live. This includes shelter, clothing, utilities, phone, car payments, insurance, fuel, food, bills, debt, etc. All of this adds up to $3000 per month. So that is $36000 per year after taxes. So you need to gross around $47000 per year. Wait! Don’t forget to….
Value the cost of business.
This is another constant. Write down everything that costs money to run your business. This includes anything and everything you need to buy to do business. Cameras, lenses, speed lights, light stands, computer, software, fuel, etc.
Now the investments (such as cameras, computer, and lights) can be divided up by the number of years you will be using them. I know I’ll be replacing my computer every four years. $1200 divided by 4 equals $300. Do this for all your investments.
Determine your yearly cost of doing business. Don’t forget to include electricity, fuel, rent, professional memberships, yearly services, etc. Let’s say you come to a value of $15000 before tax per year. So, you would need to make about $20,000. Now let’s…
Value your talent and experience.
If you have talent, display it proudly and don’t be afraid to ask for what you are worth as an artist. Experience is gold. The more experience you have, the more trusting your client will be. I put talent and experience together because of how I started in the Wedding Photography business. I had talent, but hardly any experience. So they need to be weighed together. So how do you value these aspects?
Think about this as a “raise”. You know you need a raise based on your experience and talent. So you march into your boss’s office and give a figure you think you deserve! The good news is, you are your boss. How much extra do you deserve based on your talent and experience? Let’s say you deserve about $5000 extra per year.
Okay, so your time is worth $47,000, cost of business is $20,000, and you deserve an extra $5,000. That amounts to $72,000 per year. So, you may average 20 clients per year. That would be an average of $3,600 per client. If you average 40 clients per year, that is $1,800 per client. Both are doable, but will be different clientele. Which is where marketing comes in handy!!!
I do hope this post has been helpful! Let me know your thoughts below. Thanks for reading!