Business Trends

Robert J. Pennington (www.rpenn.com): Vagueness is the first step taken toward low-balling a price. Suppliers and buyers will continually have problems if there is a lack of communication before a project begins or when initiating an image license. Most art buyers look to the photographer to provide a comprehensive scope of the project. It has now become our responsibility to define, develop, and (with graceful brevity) define the needs of the client. Start initial contact by asking the client questions about the assignment. Ask as many questions as possible and listen carefully to the answers.

SB: How should photographers learn to price for profitability?

Annie Libby: I must reiterate that the need to learn business skills is crucial! Sadly, I have seen many "professional" photographers who create less than average images. In spite of this, their outstanding marketing skills allow them to make a substantial living. In addition, photographers must also learn how to accurately calculate expenditures and apply their pricing accordingly. There are many nonprofit professional photography forums, such as the American Society of Media Photographers (www.asmp.org), Advertising Photographers of America (www.apanational.com), and Editorial Photographers (www.editorialphoto.com) that help photographers learn the requisite skills. The emergent (and the seasoned pro) can also learn quite a bit by staying "connected" with their peers in these discussion forums. Also, classes at community colleges are inexpensive, but generous resources.

© 2008, Marc Yun, All Rights Reserved

Allen Murabayashi: First, sit down and calculate a break-even analysis and determine profit margins. When this is done, look at each image and ask--what were my costs? What is the lifetime value of this image? Of course, we are subject to the market conditions of supply and demand, but I think it's a fallacy to believe that competition is based solely upon price. There are many meaningful parameters. Quality, diversity, consistency--these are all valuable components of photography.

Jock Fistick (www.fistick.com): I don't feel that photo schools--be they journalism, art, or commercial programs--are doing well with educating their students about sound business practices. It has become on the job training, which is unfortunate. Students need to be proactive and opt to take business courses in addition to their required classes. There are also a handful of good books about the business end of photography. In my opinion, one of the best investments a photographer can make in their business is purchasing a copy of fotoQuote (www.fotoquote.com) which has an industry standard pricing calculator--very useful for pricing stock sales and assignment work.

SB: What variables go into deciding what to charge for a stock photo?

Allen Murabayashi: Consider expenses and what the market will bear. The cost of being a photographer has dramatically increased, while conversely the sale price for stock photography has decreased. In all honesty, it's impossible for a single photographer to understand all the aspects of pricing different usages, so software tools are invaluable.

SB: How does software help photographers present the pricing to their clients?

Allen Murabayashi: Both the PhotoShelter Personal Archive and Collection have the rights-managed pricing module with fotoQuote information available. Images need to be priced out before they go into the Collection marketplace and Personal Archive users can add pricing profiles at any time. The rights-managed pricing module enables photographers to determine where and for what usage their images can be sold. Then they can set the price based on a percentage of the industry-standard (fotoQuote) rate. There is a test price step to check parameters. When a buyer decides they want to purchase an image, a price is automatically generated and they can purchase the image immediately.

© 2008, Marc Yun, All Rights Reserved

Jock Fistick: A client can purchase anything in the archive, which is driven by PhotoShelter; they simply input their usage parameters and the fotoQuote-driven online pricing calculator conveys the appropriate licensing fee.

The buyer can then enter credit card and billing details. Once payment is confirmed, they can download the high-resolution file in real time. This is a totally transparent and unattended sales tool for licensing rights-managed images. PhotoShelter is using the same technology for their online agency/portal, The PhotoShelter Collection. It really is revolutionary and simplifies the complex world of licensing rights-managed photography.

Robert J. Pennington: PhotoShelter is an online marketplace for selling photos. It promotes an easily navigated format for art buyers to find a source for their image needs. The tools and customization enable product branding. The decision process for pricing is completely up to the user and the market. It is very empowering to have the ability to control one's own success.