PRICES The prices you get for your work determine your profit. One of the drawbacks in times past, in commercial photography, and, in fact, the condition still exists, is that of low prices. This condition of low prices may be attributed possibly to some such incident as this. The manufacturer will go to a photographer, who has been used to making photo graphs in dozen lots of portraits, and ask him for a price on orders of, say, a hundred prints from a negative. The photographer gets excited, immediately builds a couple of houses or flats and a few other air castles with the money he is going to make, then gets scared for fear he might lose the job and down goes the prices, but a precedent has been established for like price cutting all down the line.
Another reason for low prices has been a lack of knowledge of costs. A cost knowledge or system of some sort is highly essential to every commercial photographer. He is dealing with business men who know their costs and why should the photographer not know his ? Hence, in making your prices, do not forget to take into consideration the depreciation of your equipment, which can be determined by the amount of work you can do with that equipment before it is worn out, when there should be sufficient funds on hand to replace it.
Your insurance, both on your business and your own person, should be paid out of the business an4I reckoned in your prices.
Were the amount of money you have invested in your business invested in something else you would expect a return. Therefore, figure it in.
I know you will think that is old stuff, but sometimes we all forget it in making prices, and the men who are making a success of commercial photog raphy today are men who get a price—and a good price. They are men who deliver good work. They know it is good and they demand a living price— one at which they can make a profit after properly figuring their costs.
Those who are getting low prices are generally working night and clay, have no new equipment, cannot give proper time to get quality, and they are all in all horrible examples of low prices. This is not only in one city, but it
is true all over the country. If you are doing quality work, by all means get a living price ; in fact, more than a living price. If you are not doing quality work, raise your standard. It will pay.
This question of prices is deeper than just making a living. If you are delivering quality work and getting a good price, your customer has respect for you, you have more respect for yourself, and it is much easier for you to take your place among business men as a business man, and you are not ashamed of your calling.
One of the thorns in the commercial man's side is the purchasing agent. He will send out offers for bids to all the commercial photographers in his section, and what some of them do to these prices is a shame. There seems to be always some one who will cut the prices. One of the best ways to get around this is to well advertise the fact that you positively will not cut prices, rather, will not compete for such business, as it would necessarily cut quality as well. If the concern calling for prices wants quality, you will have no trouble getting the contract, for they themselves have usually had the same experience. They found out years ago that, for the same article, delivered in the same manner as their competitor, it is folly to cut prices. They know why. They have had cost accountants on their various items and know that to cut prices they lose money.
Competition is another thing that scares some commercial men into low prices. It is becoming the custom, in the larger firms of photographers, to maintain a real price for their work, and, if the customer insists upon a lower price, to send him to the fellow that makes the goods at a lower figure, because they have found out that, if he gets enough of that work, he is bound to go out of business, and that it is the quickest and surest way of eliminating a cheap competitor.