Inflation is killing your business, and many photographers still don’t see the big picture. Inflation is an ongoing process but the past few years have really drawn on the small business success stories.
Appreciate the scared photographer
Photographers have felt uncomfortable around the subject of price, which is why I believe many are taking pictures for free but justifying the actions. Not only should we deal with that uncomfortable conversation, but we should regularly check in and see how we’re doing with the market.
Is everyone raising their fees and are we stagnating? Did you only increase your fees by 2% and the average by 6%? Learn to test yourself and make it a habit for your business. Running a successful business means ongoing management.
How inflation affects your business
Inflation will always be part of the story, we’ve experienced inflation every year but the last few years have been particularly painful. So the US government has announced that inflation is 6.8% for 2021 and while many business analysts disagree with this number (some say it is 10%), let’s assume Government history is being honest with an inflation rate of 6.8%.
That means your $1,000 in the bank will be worth about $930 at the end of that year. Leaving your money in the bank is detrimental, not increasing your fees is the result, and not facing this fear is the loss.
How does inflation affect my income?
For an easy calculation, let’s say you charged $1,000 for your average photo session. That’s your 2021 price and your 2022 price will be different, it should be higher. Because charging the same $1,000 in 2022 actually gives you about $930 in purchasing power. That’s after just one year, imagine what inflation will be like by the end of 2022. The government keeps printing more money, and the money in your bank is worth less. You have to adjust for that!
Let’s face it too, we’re all getting old. We are getting more and more tired and you not only make less money each year but you also do it with less energy. Yes, ring the alarm! You will have to make a change and commit to it.
Rich people are doing it
Billions of dollars worth of companies have increased their rates, even Amazon has increased their rates, and I believe they are worth in the trillion dollar range. The happiest place on earth, Disneyland, also raised prices. The list goes on and on but photographers like you and I are slow to adapt. Why do we allow multi-billion dollar companies to do this and as thousands of dollars companies we don’t make this adjustment?
That’s the beauty of the big brands that came before you. They have educated the market on the need to raise prices. You don’t have to have an uncomfortable conversation with your customer, no more than absolutely necessary. The market has educated the market, when you increase the fee there is nothing new. In fact, I bet some customers will wonder why it took you so long?
4 stages to raise the price of your photography
In this video, I broke down the stages to increase your fees. Watch the full video and I hope that you realize how easy it is to make a profit. Let me break down the basics of the first steps:
- ACTUALIZATION: you have to realize that you have undervalued yourself by valuing your photography, underestimating yourself, representing yourself. You have to realize that it is a gradual decline going down, not increasing. Do you have to realize that there are no merits to being a martyr?
- DECISION: The second step is to actually decide that you deserve better, that you want better. To move on to the third step, you must be fully committed to the second step. You just said it? Or do you really feel that it’s time for a change? Once you feel it, you can move on to step three.
- WORK: Seek relief. In this case, the relief you are looking for is an additional source of funding for your photography business. The other relief you’re looking for is being profitable, not a failing business. What do we need to do to feel relief? Increase your fees? Sounds like a great plan! Okay, let’s move on to step 4…
- AID: One of my favorite authors, Esther Hicks, talks about finding relief. She says she shouldn’t worry about how or why something is happening, just seek relief. Do you want more money? Raise your price, it’s a relief.
As you watch the video, I’ll go deeper into each stage, but here’s a quick preview for you. I will also answer questions like “How do I discuss this with my client?” and “Should I increase my rate in steps or all at once?”
