Archive for Business
Don’t Panic over Government Notices
Posted by: | CommentsDo you panic when you get those menacing letters in the mail from a government agency or ones that look like they are from somewhere official? Normally I do. If you are like me, you start to get sweaty and think you are in big trouble. With many years of experience, I have seen a few of these and have learned to ask more questions.
(Remember, my business is in Iowa, so this may not apply to where you are located but I am sure something similar might.)
I recently got a “Notice of Assessment”. This official and scary document was charging me a few hundred dollars in taxes.
In the section of the letter called “What should you do” they gave me some options of actions I could take. None of them looked good or correct to me!
I checked the date. It occurred to me that what if I simply forgot to file that month? No option for “make sure you filed that month” was given in the scary letter. But I checked and that is exactly what happened. I forgot to file.
When I called the Department of Revenue to make sure that by filing for that month I was caught up and did not have to pay the assessment tax and penalty I was told that I was correct. I asked why the option of simply making sure that I filed was not listed on the “what you should do list”. She joked (but I think she meant it) “that is because they are hoping you will pay anyway”.
I also double checked with my accountant. He confirmed that I was okay and he told me a client he had once was incorrectly charged thousands and they just paid it before checking. They had a hard time getting this money back.
Every experience I have ever had in calling for help, have proved that the people are very nice and helpful. But the bottom line of my advice is: read these letters carefully and get help before you panic and pay them. And…get a good accountant.
The Business of Photography
Posted by: | CommentsExciting, challenging, new, variety, creative, and fun are words I think of describing the world of photography. Your photography business can be anything you want to make it.
The photography business is similar to other industries in regard to business operating procedures. You must market, promote, and advertise your services.
You make sales, record your transactions, pay sales tax, pay income tax, pay overhead, be properly insured, train and pay staff, pay yourself, and other expenses.
What makes the photography business different, besides the fun factor, from other industries is that there is no licensing, no unions, and no special regulations. Doctors, hair stylists, and teachers, for example, have to be licensed, photographers do not.
At the bare minimum you do need a sales tax permit and a business trade name registered. But in general there are no other regulations to become a photographer. Be sure to check your local zoning laws.
I would also encourage you to research proper insurance for the type of work you do, the equipment you have, and for the location your rent or own.
Although there are terrific photography colleges, many photographers in business do not have a photography, art, or business degree. This is not a requirement but having the proper credentials will support your expert status.
If you are new to the photography business, my free report- Making Photography More Than a Hobby: Planning for Success Before You Take the Leap is a great place to start. There are many things for you to consider and do before you open your doors to customers.
It depends on your perspective if you think licensing photographers is a good idea or not. It is very easy to saturate the market with photographers when there is no licensing or testing required. Many full time professional photographers making their entire livelihood on providing photography services are feeling the pinch of the number of photographers that came onto the scene especially as digital photography was developed.
A great thing about the business of photography is how flexible the business model can be. You may choose to work strictly on location, have a studio in your home (if zoning laws permit), set up a retail location, or do a combination. You can even change from one form to another as your budget, personal preference, and customer base grows.
I like the flexibility of operating my studio the hours I please. Not all industries, like retail stores, have this luxury.
If you like change, the photography business is ever changing. In addition to improvements in technology, each photography assignment is different.
A photographer wanting to create a successful business should learn as much about business as possible. You can create pretty pictures all day long but if you can not write a business plan, market your services, or manage your money you will not stay in business for long.
Use accounting software and create a budget or spending plan. It is quite easy to go overboard on purchasing props, backgrounds, and other fun stuff. Be careful to know how much you can afford your overhead and other expenses to be. You will also want an accountant you can rely on at tax time even if you learn to handle monthly and quarterly tax filings.
As a professional photographer you would also make sure that all of the products and services you use are of the best quality.
Buy the best equipment you can afford and learn how to use the manual settings for professional results. A serious photographer creates images using depth of field and shutter speed in addition to seeing and recording light accurately.
Use quality vendors to produce your products. I would insist that you use a professional color lab for the printing of your images. Do not print images on your own printer or go to a cheap big box store for printing and call yourself a professional. Printing lasting images with the correct color profiles is a huge part of the process.
Use a real digital artist not a computer program for your retouching and enhancements. A good digital artist knows where to stop for a natural look. Most clients do not want to be over retouched like a fashion model.
You can increase your sales by offering quality framing and matting services. You already have the customer in your studio, so these additional sales are not going to cost you any more money in marketing. My Photographer’s Complete Framing Guide will show you how, if you are interested in getting started in a matter of weeks, for less than a hundred dollars in tools and supplies.
I would also suggest evaluating how you spend your time. It is easy to waste time or spend too much time on tasks like e-mail or Facebook for example. Track your time and see where it goes. Find out how much time you spend on everything from being on the phone, to cleaning your restroom, to how long you chat when a customer picks up their order.
Find out what are the most profitable jobs in the studio you do yourself. You will find that you make the most money when you are photographing, selling, or marketing. This is where your time is best spent. For the other jobs like cleaning, order assembly, making back ups, and other routine activities consider hiring or contracting someone at an hourly rate. With someone handling the minimum wage activities you can work on generating more income with active income producing activities.
Don’t assume you are getting the most out of your product offerings. Test your packages, sessions, and other products you offer for maximum profitability.
One example from my portrait studio is the difference in the final sales results from the orders I have gotten from my “Deluxe” vs. my “Elite” sessions. I found that the “Elite” session, that is twice the price, takes three times longer, and has some material costs does not produce any larger of a portrait sale than the “Deluxe” session. I thought I was doing great, until I tested this and found that it was not more profitable.
I also tested some different collage products. I showed different sizes, styles, and a different number of photographs in each one. I was surprised to find that people were willing to spend more on one product than others. So I was able to simplify and eliminate some of the not so profitable ones.
When you pay attention to the business of photography you can remain a photographer with a business.
© 2012 Barb Gordon Photo Coach
Action Steps to Sell Photography Confidently
Posted by: | CommentsThe past couple of weeks we have talked about your attitude toward money that affects your ability to sell your work. Here are some action steps that might help you improve your profits.
Do not discount or renegotiate your prices when pressured.
Study your business. Know all of your expenses, overhead, and goals. With accurate information you will be able to arrive at prices you know are correct for your studio. You do not have to justify your prices to your customers but you will have confidence behind the numbers and will less likely to feel pressured.
Selling is a numbers game. Ask any good marketing person and you will learn that a postcard mailing, for example, has a typical response rate of three percent. By tracking each step of your process and looking at the results, you can develop a formula for success. You might also find that 20% of your clients account for 80% of your income, so spoil those clients and keep them!
Write a sales script. One way to overcome your own hang ups or programs about money and sales is to write out scripts that are the message you really need to say. We all get ideas, or programs, about money and sales as we grow up. If your parents had issues, you may carry those issues on or behave in the extreme opposite. Well, these programs that might say “that art is too expensive,” “you are not worth it,” or “you can not afford it” need reprogrammed. Writing a sales script is a good way to prepare yourself for discussions about money and prices.
I found once I wrote out responses, or scripts, to difficult questions or unreasonable requests, the questions and requests stopped coming.
Practice with clients you are more comfortable with. If something is scary, who wants to start with strangers?
This is a great strategy I use when I am making any kind of change. For example, when I wanted to start having clients sign an agreement that they had place an order and will pay for it, I simply said to them, “thank you, I know you would not break this contract, but it helps me practice and build my confidence for when I have someone new that I am unsure of here.” There is no reason you can’t say this to everyone indefinitely either, no one will know who is who.
Remain calm. It is easy to get emotional whether it is excited or scared. Keep your cool and act as if you get huge orders every day. Stay optimistic as your thoughts and body language can give you away and influence the outcome of the sale.
Set a sales goal and assume you will make it. Again, your assumptions can influence the outcome. If you remain optimistic you will do much better than starting out negative and with no idea what the sale should be.
If you are anything like me, it is easy to be overwhelmed. You want to do it all and you want to do it well. The advice I go back to again and again is to start with one. Pick the most important step that will make the most positive difference the fasted and start with that. As time allows, go to the next.
How to Sell Photography Starting with Your Attitude about Money
Posted by: | CommentsMost photographers wear all of the hats in their business and the position of sales person is one of the critical ones. You can create all of the beautiful images in the world but you will starve if you can not sell them.
Find ways to not to let your preferences or assumptions get in the way. Here are a few ideas to consider.
Be aware that everyone has their own money personality. Do not assume other people respond like you do. Some people are driven to hold onto money for security. Some people are spenders, some are savers. Others are risk takers and some do not really think about money at all. (A great book: First Comes Love Then Comes Money http://www.amazon.com/First-Comes-Love-Then-Money/dp/0061649910 )
Don’t take it personal. When you work for yourself, especially if it is for the first time, it is a personal undertaking. I was fortunate to work for many retail companies and photography studios before I started my own business. Working for a successful studio with substantial pricing helped desensitize me to pricing sensitivities. It helped me see those prices as normal, correct, and valid. When I started my own studio the prices felt right, I did not have to get comfortable with them. Try and take yourself out of the numbers.
Do not assume what someone is willing to spend. If someone really appreciates your work they might even save up or use a credit card to be able to use your services. A family that is losing a member or has lost a member may be more willing to invest in portraits than a family that has never considered a tragedy striking.
Do not assume what someone is able to spend. Have you been ignored in a fancy store if you are dressed down? I sure have. You are not alone if you have ever misjudged someone’s ability to spend money. Sometimes the most unlikely person will surprise you with a substantial order. Have you ever read the book The Millionaire Next Door? The insight it provides about who people with money really are is good business information.
Remember that not all people are going to be good clients. Sure we believe that everyone needs a family portrait but we certainly do not want to deal with all people and the headaches they bring. It is okay to pre-quality customers to find the right ones for you.
Next week we will discuss some action steps you can take.
Does Poverty Consciousness affect your Sales?
Posted by: | CommentsI like the way poverty conscious is described in an article, “Ending Poverty Consciousness” by Jeanie Marshall, of Marshall House Personal Development.
“By ‘poverty consciousness’ I mean the set of attitudes and beliefs and feelings and values associated with material lack or fear of material lack. Poverty consciousness equals a belief in limitation, and almost always includes fear.
Poverty consciousness is not directly related to the amount of money you have. Rather, it’s the relationship to that money or to material possessions. If you worry about not having enough money, you’re in poverty consciousness. If you believe there is not enough for everyone in the world, you operate from poverty consciousness.
You can live in conditions of poverty without necessarily living in poverty consciousness, which is a state of mind and heart. The amount of money or other material possessions is a matter of fact. Your relationship to that amount is a matter of thoughts and feelings.”
Your attitude and your staff’s attitude about money will affect your sales. If you are uncomfortable with the prices you charge or don’t feel worthy, you will not be able to charge what you are truly worth.
I have been in many situations where people put their poverty consciousness onto me and it is a big turn off. I have been ready and willing to spend money on something important to me only to have the salesperson say something like, “oh, that one is so much, maybe you would prefer this one.” Talking themselves right out of a sale.
As a photographer, you will be selling your photographs. You must find ways to not to let your preferences or assumptions get in the way. We will talk about that next week.
(Credit information for the above quoted paragraphs: © 1995, 2007 Marshall House, http://www.mhmail.com. Jeanie Marshall, a Personal Development Coach specializing in deep transformation and personal success, writes extensively on subjects related to personal development and empowerment. She assists professional coaches and consultants to write their knowledge, wisdom, and experiences.)
From Simply Happy to Raving Fan
Posted by: | CommentsI have experienced the absolute best customer service from my website hosting company. It seems like these days it is rare to be happy with customer service. I usually dread calling into most business’s customer service.
If you have yet to purchase domain names, set up website hosting, or need email I highly recommend Domains Made Simple at http://domainsmadesimple.com/
Until lately I was simply happy with my service, things were going fine. I purchased this service upon recommendation and I was familiar with the owner, as he is a local. There was little risk, only a one year commitment, and the price was fair.
Then things changed. I have gone from simply happy to a raving fan!
I was asked to set up a couple of fast and easy WordPress sites for some local businesses. It was pretty easy but I did run into a couple of snags that required some customer service. Every time I have called I have gotten a different rep and each one of them was helpful, smart, and patient. They were genuine and not just pretending to be nice, they are nice. They did not read from a script and did not apologize all the time. They do not hide behind email support tickets; they actually have a phone number based out of Arizona.
(And no, I am not an affiliate of Domains Made Simple, just a fan!)
A Tip for Holiday Family Portraits
Posted by: | CommentsOne tip I have for you when photographing family groups is to photograph mom and dad together. Actually I make this a habit for each family group I do. I usually pose the mom and dad first as I am setting up the family pose anyway, so I pause and take a couple photographs of just them before I add the children to the pose. I don’t even ask them anymore if they want me to or not because they would just say “no, that’s okay.” I just do it.
So many couples are used to putting the kids first all the time. They typically do not think of getting their own portrait made unless it is a monumental anniversary. So this is a great time to do something nice for them whether they know they will want to order one or not. Again, I don’t make a big deal of this, I just shoot a few frames and move on.
It takes me about two minutes to capture this pose and the children like it too. I have them help me get their parents to smile.
I used to have a session that included breakdowns for a higher price. Very few people wanted that session; they went with the one family pose session. You see, they don’t know how much they will really like a portrait of the two of them until they see a nice one. And if they don’t order one, I am not out anything at all.
I actually have more sales this way than when I had an actual session for break down groups and it is fast, easy and fun for them. If you become good at selling large images and framing, this can be a dramatic sale for you.
© 2011 Barb Gordon Photo Coach & Gordon Photography & Gallery, Inc.
Backup those Digital Files
Posted by: | CommentsI just had a scare. Remember a few weeks ago I was discussing selling my old negatives and digital files? Well I sold four files from 2006 and I did not have my retouched CD from that shoot to sell. Not to panic, my paranoid multiple backup systems paid off! Here is what I do.
Immediately upon downloading a session to my computer I burn a CD or DVD. Nothing has been done to the files at all, I just burn a copy. I label this my “Unedited Raws” disc. This is filed in a separate file cabinet and not with the order. In the event I loose my client’s order envelope, I have a copy stored somewhere else. Periodically, I take these CDs home to store, so they are off location.
My compact flash card from that session goes into a little tray on my desk. I do not reuse it right away in case there might be a problem.
Then I go ahead and edit my session, renumber the images and burn my second CD, the “Edited Raws” CD. This CD goes into the client’s order envelope.
Once the images are selected that will be ordered from are retouched, a “Retouched” CD is burned and it filed in the client’s order envelope. And of course by now my camera cards are rotated back in for reuse.
My hard drive is backed up to an external drive but before deleting anything off of my hard drive, I copy a bunch of sessions to a DVD. I copy the Retouched and the Edited Raws from as many sessions that will fit. This DVD gets filed off site as well. I probably do this every couple of months. So there are four copies of files in the end.
To make this process faster, I have three sets of pre-printed labels, a set for the “unedited Raws”, the “edited Raws”, and the “Retouched”. I color code each with a highlighter for even faster identification. There are also lines for the client’s name, type of session, and date.
So what happened to my 2006 files? Well, even though I have a checklist of what needs done for every order, it appears that I forgot to make a copy of the retouched images. But I was able to go home and go through the 2006 DVDs and found them in less than 5 minutes! Logically, I could have pulled the original Raws and had them retouched again, if I was desperate, but that would have cost a lot more. What a relief to have organized backups.
What to do with old negatives and files
Posted by: | CommentsTwo weeks ago I told you about why I was selling old files. There is money sitting on our storage shelves waiting for ….what?
This week I will share with you how am I tackling over fifteen years worth of old files. Where to start with all of those bankers boxes filled with negatives and CDs?
The first step is deciding what to charge for them. Consider the likelihood of getting a reorder like we talked about two weeks ago. Don’t be greedy but remember these are valuable. You might even adjust the price after a few sales attempts that may not go so easy. Remember to take into account the time that is involved in making the sales. Your time is not free.
The next step is how to position this idea to your clients. This generation, your actual client, may not think too much of it, they have the actual photographs on the wall or in albums. But what about the future? What about their legacy? Isn’t it a real treat and a blessing to stumble on some of your own family history that is well preserved? A photograph in good condition is great, but having the original negative or digital file would be even more exciting.
You might tell your clients, “It’s not for you, really, it is for your future generations.”
If you are anything like me, you don’t want to call all these people. Who knows how current their address and phone number are anymore. And who has time to do all of this? Break it down into manageable pieces.
Step One: From my accounting software I printed a list of all of my clients by job. This lets me makes notes on who did purchase files, who told me no, and helps me locate all of the jobs I have done for one family. (I file my jobs alphabetically by last name in each calendar year.)
Step Two: To make this task friendlier to me I pulled all the files for people I was currently working with this month. It was so easy to just ask them if they were interested because they were right there, no additional trips, phone calls, or mailings necessary.
Step Three: I also pulled all the files of clients that I really felt comfortable calling about this project. Keep in mind that contacting clients just might get you some bookings while you are interacting with them!
While doing the above, I threw away old event files like dances and commercial jobs that I was sure no one would care about anymore. That alone was two big trash bags!
A side note: Be sure to shred any old MasterCard/VISA slips. You know the old duplicate kind with complete account numbers listed.
Step Four: Design a simple postcard to mail to people that you don’t have time to call. If the number is too overwhelming just do a few at a time. Nothing says you have to complete this in a month.
Do have a deadline for purchase. You want to be confident that you can throw away old files, move on, and not worry about someone changing their mind. If you are doing this in stages, just do a fill in the blank on your postcard for the deadline for them to respond. This will help you spread out the project and not make your mailing obsolete.
If you have some images that are your favorites, make a high quality scan of the negatives before you sell them. Digital images, of course, make a copy of those as well. You never know if you want to produce a book of your work someday.
When I am aware of it, one thing that I have always done is to give the files to the parents who have lost a child I have photographed. They appreciate the gesture.
Of course we photographers are control freaks and don’t want our clients to monkey with the images and make strange graphics, off color prints and then say who the photographer is! That is why we are so controlling of our raw data in the first place. But we are going to have to stop worrying and obsessing if we want fewer things to store and create some cash flow in the process.
I am going to preface all of my sales with educating the client about keeping the integrity of the images. I will also tell them that I will be happy to print any further images they may need, professionally.
Get Smart About Insurance
Posted by: | CommentsI got a little lesson about insurance when I talked to my agent about my business changing locations. I was not aware, or did not remember, that I still needed coverage even without a brick and mortar (retail) building to cover.
I always thought that Indemnification that was included in my Professional Photographers of America (PPA.com) membership dues was insurance. It is not and they do tell you that in the literature. They may cover some issues with computer failure or some other digital mishap but it is not insurance. They may even assist you with a lawsuit happy bride but not property damage.
What you want to check with your insurance agent about is general liability insurance. This protection is against claims involving bodily injury and property damage to third parties.
So even if you work from your home, even if you feel you don’t need to insure your camera, please learn more about this affordable and vital insurance to protect yourself. In my area it is less than $25 per month.
It is part of doing business – smartly. Call your agent today and do a review of your insurance coverage.
