Price Like a Business, Not a Hobby
Besides running a photography studio, I also am a mentor and coach to photographers and other service based businesses.
The first question everyone wants to know about is I need help with pricing. So my first question is: what does it cost you to be in business?
Most people answer with what others in their field charge. That number tells you about someone else's business. It tells you nothing about yours.
The difference between a hobby and a business
A hobby covers the cost of supplies. A business covers everything it takes to stay open, pay you and keep serving clients next year.
That holds true whether you work 10 hours a week or 50. A client injury or a missed deadline carries the same weight on a Saturday side job as it does on a full-time schedule.
The costs that get left out
When I sit down with a business owner, these are the costs we list first:
Business license and any required permits
General liability and professional liability insurance
Insurance on your equipment or tools
Replacing gear as it wears out
Software and monthly subscriptions
Bookkeeper or accountant
Income and self-employment taxes
Rent or workspace
Website and marketing
Training and continuing education
Health insurance and retirement savings
Your time on everything outside the service itself: emails, scheduling, invoicing and follow-up
Every item on this list is part of the price your client pays. If it's missing from your number, you're paying for it yourself.
A simple way to find your number
Here's the formula I use with clients:
(Yearly business costs + the salary you want) ÷ the number of clients you're able to serve in a year = your minimum price per client
For example, with numbers for illustration only:
Yearly business costs, including taxes: $30,000
Salary you want to pay yourself: $60,000
Total: $90,000
Clients you're able to serve in a year: 150
Minimum price per client: $600
Be honest about how many clients you're able to serve. Leave room for slow months, time off and the hours that go into each client before and after the work itself.
Now compare that number to what you charge today. If your current price is lower, the difference comes out of your pay, your savings or your ability to keep going.
Why this matters to your clients
A price that covers your costs protects the people you serve. It means you're licensed and insured. It means you have backup equipment when something fails. It means you're still in business next year when a client wants to come back or send a friend your way.
Clients notice the difference, even when they don't see the numbers behind it.
Let's find your number together
I've run my own business for 26 years. I coach service business owners through this process one hour at a time or through a coaching package. We go through your costs, your capacity and your goals so you leave with a price you're confident in.
