How to Present Your Prices

Episode 174 - This is all about how to show customers your prices. It's a science ;)

The Transcript page - https://photographysidehustle.com/174

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Transcript

Hey, how’s it going? I’m Andy Jones, and this is episode 174 of the Photography Side Hustle podcast.

This week, I’m going to waffle on about how to present your prices to customers. 

This subject came up over dinner during the week. My daughter, Kenzie, said she would like to charge more but didn’t know how to go about it. So, I looked at her website, and this is what we discussed.

I’m using weddings as an example, but these techniques can be used in any genre of photography or any type of business.


Individual Prices - A La Carte
The first thing I looked at was her wedding packages. Now, you could break all your prices down and offer them a la carte, that is, individually. That allows the customer to pick and choose what they want. It also doesn’t put a cap on how much they can spend.

So they could pick 7 hours of your time, a second photographer, and a wedding book, or it could just be 6 hours of your time.

This method can get complicated, and you have to be sure you have everything covered.

The easiest and most popular method is …

Tiered Packages
How Many Packages?
If you want to make it as easy as possible for customers to choose, only offer three options. 

When customers look at price options, they compare them against each other. If you have five options, you are making the decision harder. Kenzie had four options: 4 hours, 6 hours, 8 hours, and 10 hours. So we decided to drop the 4-hour option. I’ll explain why later on.

Okay, so the three packages are basic, mid-range, and premium. I’m calling them that, but you can call them anything you like. The prices I use are just examples. 
Basic Package
This is the lowest amount of money you are willing to earn for a wedding. Let’s put the price at $2,000 for up to six hours. This is a bare-bones package: You take photos for up to six hours, and they get a drive with 500+ edited photos.

The aim is to make this package look uninviting compared to the mid-range option.

Remember to use the term “up to” on all your packages. It will stop customers who only need you for 5 hours from trying to get a discount on the 6-hour package.
Mid-Range Package
This is the one you want them to buy.

It offers up to 8 hours of coverage for $2800. Customers get 750+ edited photos and scaled-down copies for social media use, plus $150 off each photobook ordered. 

Photobooks are often ordered in threes: the bride and groom and both sets of parents. So this can be a great money maker. If a book costs you $150, you can easily sell them for $600 plus.  

Okay, remember that this is the one you want them to buy, so make it irresistible. 

There are customers out there who want the best, and this is where your premium package comes in.
Premium Package
This is where you add everything you have to offer. Upto 10 hours, extra social media-sized images, 900+ edited photos, and one photobook. You could price this package at $4000 or more.

Your top package is the one you wish they would all buy, but realistically, only one in ten might. You could add a second photographer and raise the price even more. 

Most people are going to choose your mid-range package, and now and again, someone will buy the premium. The aim is that no one buys the basic because you have made the mid-range a no-brainer.

Now, you can’t put everything that customers want into a package. That is where you have a section called …
Add-ons
This is where you have extras like a 2nd photographer, extra hours, prices for photobooks,and prints. Whatever else you can think of, put it in here. 

Your add-ons can really boost your profits. Oh, and when you price for a 2nd shooter, charge at least double what you pay them. If you give the 2nd photographer $50 an hour, charge the customer $100 an hour. 

Okay, that is the package options done. Next is …

Price Anchoring
This is how you are going to show your prices to the customer. Now, Kenzie's prices are shown upside down on her website. That is, she had her cheapest price first and the price above the description.

When price anchoring, you want the first thing they see to be your most expensive package. Plus, you always show the value before the price. So, the price is below the package description, not above it.

This way, the customer might be initially shocked by the price but get better news as they scroll down. 

The customer sees your premium package, with its high price, and probably thinks, "I don’t need all that." 

Next, they see your mid-range, which is less expensive and has everything they need. 

Finally, they see the cheapest option, which doesn’t give them what they need, and the price difference between basic and mid-range isn’t that big.

By doing it this way, you have helped them compare their options and make a decision faster. It might sound like mumbo-jumbo, but it works.

Next, we’ll take a look at how to raise your prices.

Raising Prices
So Kenzie has done a few weddings this summer, and her work is improving rapidly. I told her she could easily add a thousand dollars to each other packages. 

It's so easy to raise your prices. You just change it on your website, and in Kenzie's case, change all the descriptions and put them in the correct order.

Her reaction to that was, “How will people react to that?” If someone has been looking at your site, it might shock them. But they should have booked you when they first found you.

However, new website visitors will see your portfolio and packages and think all the couples in the photos paid your current prices. Each portfolio image acts like a testimonial. Those smiling faces in the photos are saying we paid for this photographer to capture our big day. 

So don’t worry about raising your prices. Offer three packages and make the middle one the most attractive at a price that makes you a good profit.

Okay, I am now going to send Kenzie the transcript of this episode because I know she doesn’t listen to the podcast. Kids eh?

Right. If you have any questions or would like me to look at your website, you can find me in the Facebook group, Messenger, Instagram, or Threads. 

I’ll be back next week, bye for now.