5 Ways to Improve Your Profitability as a Professional Photographer
Today we’d like to offer a guest blog post, written by Teri Ritter, of Teri Ritter Photography. Teri has been in business for 10 years in San Diego, CA and Dexter, MI, specializing in families, seniors, and babies. Teri is also a Marketing Consultant and enjoys sharing marketing ideas and plans which boost the bottom line for professional photographers everywhere.
- PRICING – Professional photographers should review prices periodically. Be certain that you are capturing your time, hard costs and soft costs. Many photographers forget to include training, equipment, overhead, etc. when establishing prices. Don’t get caught up in worrying about the competition’s pricing. Do you believe that Nordstrom establishes prices by comparing to Target? Does Applebee’s compare prices to McDonald’s before they establish pricing, or vice versa?
- EXPENSES – Review your expenses. Every month you should print out a P&L and review all expenses. Can those expenses be reduced? Are you operating LEAN or with a lot of Fat. Cut your expenses wisely to improve your profitability. This should be a standard monthly exercise in your business.
- SALES – Review your sales. It takes less effort and costs less to add on sales with an existing customer than to bring in new customers. Therefore by creating some add-on bonus products you will easily increase your sales and your profitability. For example, when a high school senior spends a minimum of 500.00, they receive a free video for their Facebook. This strategy pushes customers to high purchase levels. Don’t stop the bonuses at the base collection, bonus all levels with compelling products.
- FREQUENCY – Increase the frequency of purchases by offering specials to get them back into the studio. Offer frequency programs and special events: Baby/Toddler Watch Me Grow program or Family/Kids special events. The goal is to get your existing customers into the habit of visiting you more often.
- BOUNCEBACKS – You have the images, you have the customers. So advertise creating cards or gifts during holidays for any and all images you have created throughout the year. Why stop with the holidays? What about Mother’s Day or Father’s Day? With a little work, you can organize your system to reach out and take advantage of the opportunity. Again you have the images, you have the products, just tell them about it!