Pricing for property photography: what exactly does a photo shoot price you?

Real estate photographers: What exactly does a photo shoot price you?

A good deal of photographers from the realm of real estate virtual staging bill really lower prices down to $100 or even far less. But could a photographer run a thriving company at these low prices?

To find out it is well worth considering what it actually costs you to do a photo shoot. To achieve this you have to check out all your expenses, and spread them out over all the photo shoots you do every year to learn what the true price for you is a photo shoot.

To aid you with this you will want to see the video I’ve made for you up over.

But you may also prefer to download this PDF which can allow you to examine your amounts so that you understand what you need to be charging.

After downloading this PDF you may find it easiest to publish it, then write down your numbers on paper as you work your way through this content.
Hopefully the aforementioned video will have the ability to describe how to use this PDF to compute what it lets you perform every single photograph shoot you perform, so in the event that you become stuck watch the appropriate region of the video , which may allow you to get your mind around it. But in the event that you still can not get it right afterward get in contact with me personally and I’ll do what I could to help.

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Video transcript:

Let us have a discussion about pricing for property photography. If you are charging $100 for a photo shoot then you might be earning as small as $14 to the time spent filming and shooting a single property. And if it takes you 4 hours to pay travelling into the home, shooting, editing and sending the photographs, then you are earning $3.50 per hour. Alright, so how can we reach this worth? Well, let us look at this in detail.

What we will need to do is work out exactly what your prices are for doing every individual photograph shoot, and I’m just going to cover the fundamentals your costs might be lower or higher than that, which means you may want to work out a number of the things on your own.

Find your Typical fee:

So we will begin with exercising an ordinary fee, and an expected variety of tasks which you’re going to do at a 12 month period.

Now I’m planning to do so by presuming a really, very low cost of only $100 per photo shoot. Hopefully none of you’re charging that small, however I understand there are tons of photographers out there with really low prices, so it certainly occurs, and I wished to show you an illustration of an extremely low cost and just how much of an issue that could be.

Let us assume you are charging $100, you are doing two photo shoots daily, and you are doing this for 45 weeks each year.

Thus the total weekly = $1000 a week and $45,000 each year. This can be really for 450 photo shoots annually.

Costs: camera equipment

Now let us look in the other expenses, and a few of these will be camera equipment. In that we have to pay the upfront costs of your equipment, and also the expected replacement costs over time, and this also must cover all your equipment — chief camera figures, spare camera bodies, lenses, flashes, and tripods.

Let us go for a very low cost of $3000 annually, which is likely not enough but we are taking a look at a budget conclusion so we are going to assume you are getting fairly basic equipment.

Therefore, in the event that you invest $3000 annually, and you are doing 450 jobs each year, then that is 3000 divided by 450, that is $6.67 per take.

Costs: automobile expenses

The following cost is a vehicle, and everything that goes with it. When we add in gasoline or gasoline, then upkeep, subsequently depreciation on the value of the automobile with time, we are looking at $4600 at annually. So 4600 split by 450 phot shoots annually = $10.22 each take.

Costs: income taxation & wellness insurance

The upcoming huge expense is income taxation. It is going to be different in each state, however if we take a look at the US tax rate calculator on an income of $45,000 afterward a photographer from the USA will be paying for the self-employment tax and income taxation, which I exercised might be roughly $8000 annually, which equals $17.77 per picture shoot. That is filing as someone, however your tax rate will be reduced if you’re filing as a married couple, so bear this in mind and take a look at everything you’d owe on your own tax rate.

Nonetheless, in the US if you need health care then you definitely have to be extra up and over your earnings, so I moved into an internet medical insurance website and one stated that an ordinary fee could be $4302 each year. So over 450 photo shoots that is another $9.56 in addition to the taxation rate, so health plus tax insurance is $27.33 per picture shoot.

Again, if you want or desire health insurance is your decision, but if you do want it then it needs to be insured by your earnings, which goes back into the commission you bill your customers.

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Costs: company operations

Another price, obviously, is your training and time spent building your organization. That is time that has to be covered financially. Should you spend 10 hours each week working on your own abilities and your company then that is 450 hours each year, and when we assume a hourly rate of $20 per hour afterward we do $20 x 450 hours that equals $9000. Afterward $9000 disperse across 450 photo shoots is 20 per take.

Costs: camera equipment insurance

In addition, we require insurance of our equipment, and general liability insurance. I will assume a rate of $700 annually for all that, and I know there’s a great deal of variation based on where you are and exactly what equipment you have, but let us assume $700 annually, which will be $1.55 per take.

Costs: gain margin

Ultimately, there is the profit margin at the top, and at that profit margin we are likely to add money put aside for retirement once you complete. As a photographer you have to think as a company operator, not a worker. Ok, if your customer is paying you $100 for a 4 hour photo shoot, your earnings isn’t $25 a hour. This is actually crucial that you do this — your earnings is NOT $25 a hour, and that is because you want to factor in the hours that you invest maybe not shooting, you want to incorporate your retirement gifts, and you want to plan ahead for if things seem bad, as they inevitably will. That is why it’s very important to add some fat on your photography commission, some gain margin, since you are likely to require this cashflow daily.

In our case I’m going to presume a gain margin of 20 percentage, which comprises roughly 10 percent set aside for retirement, and 10 percentage for the profit margin. So 20 percent of a 100 photo shoot is just another $20 that has to be covered by every photo shoot which you do.

Add up All the prices:
So let us look at all our expenses, and I think you’ll find out how pricey these photo shoots may be for you. So here is our list for this particular instance we are doing now:

Camera equipment is $6.67 each take.
Car costs are 10.22 per take.
Income taxation and health insurance is $27.33 percent take.
The cost of instruction and time spent performing business operations is 20 per take.
Insurance for our camera equipment and standard liability is $1.55 each take.
The gain margin to put aside for after is 20 per take.
Along with the total for a lot of this comes to $85.77

With that volume you have paid for all except for your own time with this specific photo shoot, and that is time spent driving to and from the home, time spent shooting, and also the time spent editing the photographs. Therefore, in the event that you charge the customer $100, and your prices are 85.77, then your time is worth $14.23.

Let us assume then that you just spend 4 hours driving, shooting and recording, then that is an hourly fee for you of 3.55. You are earning less than a person on unemployment benefits from Mississippi. It does not make sense, does it?

It’s really somewhat better than that, as you are also getting $20 that is included as gain, and an additional $20 to pay the expenses of your training and business operations, which up comes to the amount of $54.23 per take. But keep in mind, your benefit is something which needs to be put aside for after — it is not something you need to use this week to cover the lease, or to purchase new camera equipment.

So although the gain is YOUR money, I think that it’s best if you do not include it on your amounts for what you create on a take.

When we do this then we could observe that charging $100 per photo shoot, based on these amounts, isn’t sustainable, as when we eliminate your prices for camera equipment, your auto, income tax, insurance, and profit margin, you are earning $34.23. Based on that amount, 450 photo shoots annually would provide you a take-home earnings of $15,400.

I am pretty sure you couldn’t conduct a fulltime company at the speed. If you are just charging $100, then you have to increase your rates.

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Increase your prices?

So what happens then if you should charge $200, and do 450 photo shoots each year? For a beginning your earnings jumps around $90,000 annually, and your prices go like that:

Camera equipment remains $6.67 per take — which does not change.
Car costs will also be the same at $10.22 per take.
Income taxation and health insurance goes up to approximately $57.00 per take.
Cost of instruction and time spent performing business operations is 20 per take.
Insurance for our camera equipment and standard liability is $1.55 each take.
The gain margin to put aside for after is 40 per take.
The total of all that comes to $135.44, leaving you $64.56 to pay your own time doing a photo shoot. So $200 to get a photo shoot is not too bad, but it is only $64 in salary for you for the time. But in addition to that $64 punctually you are able to add an additional $40 in pure gain, and an additional $20 to pay your time and company operations, so you effectively earn over $120 per take, which is a lot superior compared to $54 per take. So leaping up from $100 to $200 leaves a large difference — if you are charging $200 you are renewable, and also you may do okay, but if you are charging $100 per take then you could realize that your company can not survive for long.

Calculate your prices — visit the PDF:

Alright, now it is your responsibility to calculate your prices each shoot. I have ready a PDF that will assist you operate it outside , as your numbers will probably be entirely different to this. So let’s head to my computer today and we will have a peek at this.

What can you do?

Now maybe you are freaking out because you are taking a look at your present prices, and today you are unsure how you are going to earn any real money as a photographer.

First of all, the fantastic thing is that at least you know your numbers today, so you’ve got a opportunity to do something about it. That is a fairly major thing.

The good thing is that you are likely to get to do something to change things. If you put in that hard job, then you are going to do very well. I meanthere are artists out there doing very, very well in aggressive, price-sensitive markets. That is by no means a hopeless circumstance. It may be done, and here are some choices for you:

1. You can do more photo shoots daily , and target for 4 shoots every day instead of just 2. You would have to change how you operate, but it may be carried out. What you would have to do then is begin reaching out to prospects so that you may get more customers.

2. You could increase your costs , as we looked at in that PDF, which will immediately boost the wage you get from every photo shoot. How successful you’re with that however goes back to our conversation on positioning your organization, which we did a couple weeks ago.

3. You can diversify your customer base and operate for other businesses out real estate, and this is something I talked about lately too. By way of instance, if you’re to perform one huge shoot for a commercial customer every month, and if you are charging only $1000 for all those photo shoots, then that is an additional $12,000 annually, and that could help balance the reduced prices you are charging for property photography.

Alright, are you beginning to learn just how all this fits with what I’m discussing in this movie collection? So I’m speaking about how you place your brand on the current market, obtaining a varied customer base, and understanding how to take well enough to what you are doing, and the way to raise the quality of your photography based on the circumstance.

But here is what I would like you to remove from this specific movie — understand your numbers, ensure your price per take is something that you’re conscious of, and be certain that the fees you are charging are large enough to pay all your costs, offer you a healthy profit margin, and appropriately reward you for the time editing and shooting.

 

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