Raise your profits 50%
How do you recharge your business and boost your sales 50% this year without getting any new clients? I will help you forecast your earnings, value your work and increase the revenue earned in your sales presentations with your signature line. Both emerging and established photography studios can increase their revenue focusing solely on existing customers.
Studies show that selling more products to your existing customers is more profitable than the cost of obtaining new customers.
Forecast your earnings:
If for example your average portrait sale is $1,000 and you only have 4 clients a month. I can show you how to turn $4,000 per month into $6,000 per month relying solely on existing customers. You can apply one of two methods:
a). raise your prices 50%
b). raise your prices 25% and sell 25% more products to your clients
Let me show you a few examples. Here is a sample revenue forecast for June 2012:
All sample forecasts in these projections include products that range in price from $99 up to $479. Don’t worry if you’re prices are lower or higher, these are simply forecasts to show the difference two methods can make in your monthly revenue.
Here’s one projection if you increase your prices 50%:
Would you like to make $2,000 more per month? I know I do!
As you can see, a 50% increase in prices yield you an extra $2,000 for the month of May (in this example). If you look back to our original week 1 sale at $1,200, you’ll see if you raise your prices 50% this will yield you $1800. I realize many of you may be unsure if a 50% increase is feasible. We have that little voice in our head saying, “no way, we’d lose so many clients” or “I can’t imagine being priced more than local studio XYZ”. Well I’m here to tell you that your local competing studio doesn’t care what you’re charging so why should you care? If you lose 3 clients but increase your revenue 50% you’re still up at the end of the year. You’ll end up having a lower volume higher end studio. Doesn’t that sound wonderful? The clients you have are likely clients that trust you and value photography. Isn’t that the kind of clientele we really want?
Create a Signature Line:
When I considered raising my prices 50% last year, I launched a signature line and offered a higher end product. Don’t just launch a signature line and raise the prices and keep your work the same. Look to create something unique and print your work on art paper, giclee or canvas at a premium. Make sure you select vendors who are able to deliver with a quality and service you trust. If you want to create a unique style, take a look at my last BRI blog article, Creating a Unique style and Re-Branding Your Business.
I create heirlooms for my clients as part of my signature line. There are few moments in life that change us forever. Do you remember the day your son was born? Do you remember the first time you held him in your arms? These are the moments that swell in our hearts and move us to tears. They are moments that we want to hold onto forever, but time does not let us. …But photographs do.
I know some of you may not be ready to raise your prices 50% even after launching a signature line. Here’s a second projection if you increase your pricing 25% plus sell 25% more products:
I realize a 50% increase in prices may not be for everyone. At the very least increase your prices 25% today. Look at the example above. Week one there was a $1500 sale and an additional upsell of $375. At the end of the month two small changes could yield huge results for your business.
Have you ever gone shopping and come home with much more than expected because a great salesperson sold you or oversold you. Chances are you came home with things you need and want. When our clients come to us, do we show them all the options available? Do you have samples of everything on display? You must show what you want to sell. I have samples on display in my studio. I have framed giclee prints, photographs, canvases and 2 flush mount albums. I rarely show small prints, because I prefer to sell wall art. If I showed clients all 8x10s and 5x7s can you see how my sales would decrease? I sell wall art and create heirlooms for my clients that are cherished and passed down for generations. When you think of priceless works of art you know they are very expensive.
How do you sell 25% more in products? For some of us sales is a scary thing. You can sell more by exclusively offering in person sales presentations. If you offer online galleries, you are losing tens of thousands of dollars EACH year. I remember a friend telling me that the cost of a projector and screen would be paid off in my first in person presentation. I was doubtful, but she was CORRECT. I did a happy dance at the end of the sale.
Can you sell two or three more items per session? Show them vibrant metal prints and give them cool ideas where to display them. I often suggest a family room or hallway. Helping your client decorate their home is much more exciting then selling them products. It even sounds more exciting!
Value Your Work:
Would you like a raise? Would you like a 25% raise? I think you deserve it. How many hours does it take per portrait session?
Here is an example of the total time I take per session:
Pre-Shoot: 3 hours
Consultation: up to one hour discussing and planning the portrait session.
Schedule Appointment: This can occur in one or more calls or several email exchanges. Up to 60 minutes.
Session Preparation: Location scout. Purchase or reserve props and accessories. Rent equipment and charge equipment. Up to 60 minutes.
The Shoot: 4 + hours
Travel: Up to 60 minutes of travel. If location is closer, I allow 30 minutes for traffic, etc.
Shoot Preparation: 15 minutes preparation at the location.
Photo shoot: Up to 2 hours. This can vary.
Travel home: Up to 60 minutes of travel.
Post-Shoot: 14 + hours
Processing: up to 30 minutes downloading and backing up CF cards.
Editing/Post-processing: 3+ hours of culling including basic color correction.
Presentation Prep: up to 1 hour creating a slideshow for the presentation.
In-person Sales Presentation: up to 2 hours selecting art for my client’s homes.
Final Post-processing/Retouching: 6 – 20 hours retouching. Additional complex retouching is often involved.
Order: up to 30 minutes placing and verifying the order.
Client follow up: 1-2 hours following up with client to ensure receipt and satisfaction of their order.
On average my sessions take 21 hours of time. How many hours do your sessions take? Please feel free to modify this to suit your studio.
Whether you give yourself a 25-50% raise or sell more products, value your work and value your time.
As artists, we don’t often keep track of the time we invest per client, but its important if we want to be profitable. We need to value our work if we want to recharge our business and boost your sales 50% this year. But first you must forecast your earnings on a monthly basis to project and measure your results. Create a signature line printed on art paper, giclee or canvas at a premium and you’ll see a huge increase in revenue earned in your in-person sales presentations this year. If you’d like to join one of my in-person sales presentations, email me at firstname.lastname@example.org for dates and details.
As always, if you have any questions, I’d love to hear from you!