how do I price myself? part 1: set a financial target

Pricing workshops cost hundreds of dollars.  They cost hundreds of dollars for a good reason: it is a complicated process.  It's not enough to just say, "I want to make $100,000 a year!" and then say you're going to do 100 sessions for $1000.  That's not quite how it works.

Since I often get vocal about how important it is to set your prices to reach your own very real and personal financial goals, I thought I'd take the opportunity to create some practical, self-guided instructions on how to come up with an an actual number so that you're not just plucking a random rate out of thin air (or off someone else's website) and thinking it has to work for you.  I'm warning you, though - this is a full day workshop packed into a single blog post, so brew up some coffee or tea and get yourself comfortable for the long haul. By the end of this post you will have been given tools and instructions to:

Calculate your pre-tax Target Income

Calculate your Cost of Doing Business

Factor in your estimated annual Income Tax

Know your actual Financial Goal

First, you need to know that there is no one single "right" answer for how much you need to charge, and as far as I can tell, the only "wrong" price is one that doesn't meet (or exceed) your financial goals.  If it is costing you money to do this, you're doing it wrong.  That being said, I am going to identify specific income goals, and you will need to put in the work to calculate the one that most accurately reflects your situation, including those looking to break even by making your hobby pay for itself.

For the purpose of this exercise, we are going to assume that you have already gone through the process of setting your company up and are just wanting to know how much you have to charge to meet your financial goals. (If not, here is an older post that covers the basic steps for getting yourself set up as a legal business.)

The first step is to determine your (actual) pre-tax TARGET INCOME, which won't just be a random round number (like $100,000) but will be a calculation of your cost of living, cost of doing business, and cost of goods sold. If you want to make a $100,000 profit, that number will be included over and above your target income. This number will be the same regardless of what kind of creative profession you are working in.

1a) IF PHOTOGRAPHY IS OR WILL BE YOUR SOLE SOURCE OF INCOME then you need to first figure out how much money you require to cover your bills, pay off your car loan, and sock something away for savings.  Completing this exercise will take you several hours (and perhaps days) to complete as it requires you gather up every bit of financial information you have from rent and utilities to consumer debts and retirement savings to childcare costs to your clothing and junk food budget.  The Government of Canada has created a useful tool that you can use to figure out your budget.  You can use the online version here or download the excel version of the calculator here. You will leave the field where you input your "income" blank until the end, at which time you will put in the net (after tax) amount you need to make to ensure that you are flush and that will be your pre-tax target income.

Here is an example of someone whose sole source of income coming from photography needs to be $81,690.00

NOTE: If you and your partner currently share expenses in a way other than 50%-50%, you will need to complete a separate calculation for each of you that reflects this.  For example, you may split the expenses 35%-65% or your partner may cover the rent and utilities while you take care of groceries and car payments.  To ensure accuracy, this is a necessary step even though doing it may be more work.  (I did warn you it might take hours, perhaps days, to complete this portion...)

1b) IF PHOTOGRAPHY IS A SOURCE OF SUPPLEMENTARY INCOME because you already have another source of income, then you need to identify the amount of shortfall your income from photography is intended to cover.  To figure this amount out, complete the budget worksheet as in Step 1, but put your current income into the calculator.  The deficit showing will be your pre-tax target income.

Here is an example of someone who needs to top up their family income by $10,000 per year

2) IF PHOTOGRAPHY INCOME IS STRICTLY TO MAKE FUN MONEY because you already have you financial obligations covered, then you need to identify that number.  Perhaps your photography income is intended specifically to pay for your kids' extra extracurricular activities, to offset (or augment) the cost of your family vacations, or to top up your retirement savings.  You can set this number to whatever it happens to be and it will stand alone as a pre-tax target income.

Here is an example of someone who works strictly for fun money.

NOTE: A number only gets entered in this category if it is 100% disposable.  If your child would be missing all extracurricular activity as opposed to not getting to take 5 classes instead of 3 because this income was eliminated, then it is not strictly "fun money" and you need to complete 1a) or 1b) above.

3) Regardless of your pretax target income, YOUR PHOTOGRAPHY INCOME ALWAYS HAS TO COVER THE COST OF DOING BUSINESS (CODB).  This applies to everyone, including HOBBY PHOTOGRAPHERS who, if they accept any amount of payment for their services, are required by law to have a business license and pay taxes.  There are several simple calculators available online including this one from the National Photographers' Association of Canada, but in order to get accurate numbers there is a lot more work involved. I know. ~heavy sigh~

There are several factors that you need to take into consideration when calculating the cost of doing business, the first one being OPERATING COSTS.  Your costs will be slightly different depending on your industry (knitting, sewing, pattern-making, etc.) and you need to adapt this list to reflect that.
Operating costs refer to expenses that you generally pay regardless of whether you had any clients or not.  Operating costs vary greatly from one company to the next based on a number of factors but we are going to specifically focus on whether you operate as an on-location home-based business (HBB) or out of a studio or office.  In both cases, the fixed operating expenses will be similar regardless of your corporate structure (sole proprietorship or incorporated entity), but it is imperative to exclude amounts for eligible use-of-home tax write-offs such as your cell phone and internet if those amounts were already included in your household budget in 1a, 1b, or 2.

Standard operating costs for both HBB and studio might include:

• business licenses
• liability, equipment and business insurance
• memberships and dues
• software subscriptions
• office supplies (stationery, stamps, paper, toner, etc.)
• accounting and legal fees
• cell or land phone, internet, security system and monitoring ONLY if it is used exclusively for your business and you would disconnect it if you stopped working
• web hosting/site maintenance
• advertising
• equipment maintenance and repair
• attire/shoe allowance
• consumables such as paper backdrops

If you operate from a space (studio or office) outside of your home your additional operating costs might include:

• rent or mortgage on commercial space
• building insurance
• utilities
• security system/monitoring
• internet and additional phone
• toilet paper and cleaning supplies

Next are your CAPITAL COSTS which are physical goods that you use to operate your business such as computer and photography equipment (here is where you include repayment of business loans or your leasing costs) and props, reusable backdrops, costumes, etc.  These are one-time expenses that you will depreciate or can re-sell.

If your company owns your vehicle and you use it exclusively for work, you can include your vehicle insurance, fuel, loan payment, and maintenance in your operating costs.  If you use your personal vehicle, you can include an estimated amount ($/km or fuel receipts plus a defensible % of vehicle expenses) here.

Other VARIABLE COSTS that you may want to budget for are things that you could reasonably eliminate yet remain fully operational.  Examples of this might be coffee, professional development, magazine subscriptions, and so forth. We will deal with the Cost of Goods Sold in a little bit...

Of course I am not going to leave you high and dry - here is a calculator you can use (just save a copy to your own Google Drive or message me via the contact form on this site and request an email copy!)

4) After putting in your OPERATING COSTS, enter the pre-tax target income you calculated in 1a, 1b, or 2 at the bottom of the calculator.   It will automatically add them together so you can add 25% - 35% for income taxes.  This.  THIS will be the actual "magic" number you seek, the true and very real amount you need to earn to reach your own personal, individual financial goals.

CONGRATULATIONS!  

You are now ready to start looking at how to price your products and services!  

If you are only providing digital files, you can skip this part and join us later, but if you are selling or including products such as USBs, prints, and albums whether by in-person sales or a service such as SmugMug, in preparation for setting prices you need to factor in the COST OF GOODS SOLD (COGS) COGS are expenses that are directly related to product sales.  You can easily identify products and services that are related to the cost of goods sold by determining if you would not have to spend money on that product or service if you did not have a client needing it.  You will need to make two lists, one of expenses that you will be passing along directly to your client, and one of expenses that you will be calculating into your pricing.  Here's a starter list of common photography expenses under Cost of Goods Sold:

• USB keys
• prints, canvases, albums, etc.
• specialty packaging
• shipping and duty
• short-term (daily or hourly) studio rental
• food and refreshments (ie) champagne for engagement session or cake for cake smash, etc.)
• hair and make-up artists
• keepsake costumes or props
• extraordinary travel expenses (destination weddings)

If you are a graphic designer or videographer, you will need to make this list reflect your specific expenses. Now. You've earned it, so go have a glass of wine or a pint while you mull this list over and start brainstorming to complete your own.

I'll see you in a few days for Part 2: setting prices, in which we will figure out how much you need to charge per session, how many hours of work you will likely be putting in each week, and what you should be charging for products (if you are carrying any.) We will also touch a bit on how the products and services you include form a part of your corporate identity or "brand" and how to build in a growth plan for your company!

industry guidelines

I see this lament come up time and again in the photography industry:

        "How can some photographers charge so little?"

This is invariably followed by the same comment:

        "There should be an industry standard."

So I thought I would put pen to paper (or fingers to keyboard as the case may be) and write down some personal thoughts and factual observations about this discussion, which never seems to get resolved.

While some might erroneously view the idea of industry guidelines as being equivalent to "unionizing" the most obvious difference is that "unionizing" would require a governing body that would negotiate and collect fees from clients and from whom we would receive a minimum salary or wage for a maximum number of hours per day before receiving overtime.  This is nothing like setting a minimum price, which is simply called "price fixing" and not only do consumers hate it but it's actually illegal.  If we were going to suggest that everyone had to price themselves so that after business expenses they paid themselves the equivalent of the provincially-prescribed minimum wage and limit work hours to no more than the maximum as set out in Canadian Labour Standards so that they can live within their means, that would be a conversation worth having.  Instead, the conversation revolves around "normalizing" higher (fixed) prices for creative services and products and inaccurately referring to this as a "standard."  Whose standard?  Not mine, and certainly not my clients'...

Before I continue though, I need to point something out.  Photography is a bit of an outlier from other professions - we are in a unique industry that has virtually limitless possibilities.  That we have diversified so much in the field of portrait photography that we have in fact driven WalMart to follow our lead is a testament to the fact that we have stumbled upon something great.  As an added bonus, there is so much flexibility in not only in what we want to shoot, but how, when, and where, we basically have the ability to have designer jobs with any one or combination of travel, architecture, landscape, nature, wildlife, sports, space, real estate, products, babies, weddings, glamour, boudoir, fantasy, digital illustration, pets, and yup, even porn.  Whatever you can point a camera at, there is a potential market.  How many industries offer that ON TOP of flexible hours and the ability to run your company from home and your smartphone?  It's no wonder so many people want in!  Which of course, unlike toddler soccer when they don't keep score and everyone gets a medal, means competition gets fierce and not everyone gets to win.

To ensure every child 'wins', Ontario athletic association removes ball from soccer

(Steve DePolo/FLICKR)

Shame

We often hear the phrase "community over competition" but under the guise of "educating" newcomers to the industry, statements get made about how people are devaluing themselves and the entire industry by not charging "enough" which as I recall as a newcomer felt more like passive aggressive bullying than "education."

The shaming isn't limited to newbies though - those who work part-time as photographers are also subject to getting called "hobby" photographers like it's a bad thing and are subsequently accused of cheapening the market and taking work away from those who are "legitimately" attempting to support themselves as full-time photographers.  There is even a host of terms with derogatory connotations used to separate those who consider themselves "professional" photographers from those who they feel are inferior - weekend warriors, momtographers, GWACs, WAHMs, etc. even though they themselves started off as one of those.  Even full-time photographers who are making a comfortable living but charge less than what others might want or need to make are accused of "undercutting" the competition.  Nobody likes to feel judged, and often it feels like you're damned if you do, and damned if you don't.

Blame

We constantly hear complaints about "entitled millennials" and how they expect the world to make them space simply because they exist.   Yet that same kind of irrational entitlement is sometimes used to hold "the industry" accountable for our success (or lack thereof) rather than being aware of and examining what we ourselves are doing.  Furthermore, some people accuse others - usually local newcomers - of "ripping off" ideas and trying to muscle in on their "territory" despite the fact there is a global community of millions of photographers constantly feeding new trends into the mix (remember that time when everyone made everything black and white except the eyes?)  We take the existence of competition - especially talented upstarts - as a personal infringement on our right and ability to succeed.

Though the veterans commiserate about how much wiser they are now that they are 2-5-10 years in the biz and their stated intent is to help others by raising everyone up, let's not forget that telling everyone else to raise prices will ironically make the pool of potential clients shallower as more people will be fighting for a smaller number of clients, rather than leaving the low-priced photographers to provide services to those who can't or won't pay the "standard."  I mean, if your pricing model isn't working for even YOU why would it work for everyone?  And, as difficult as this is form some people to wrap their heads around, some of us just have a core philosophy that photographs of your family or wedding should be affordable, especially if we were once unable to afford is ourselves.

I am selling my art

Lastly, I want to point out one small but important fact: we are artists and because beauty is in the eye of the beholder, you cannot standardize or homogenize and therefore regulate outputs any more than you could for painters or sculptors, which would be especially true for innovators who expand and improve the craft with new techniques, subject matter, and technology.  Unlike the medical profession or skilled trades, creative professionals cannot be measured objectively, only subjectively, and as we all know there is no accounting for taste - mom goggles guarantee that.  While there is always room for peer review and feedback, and everyone will have a different opinion on what constitutes "good" and "bad" art, there is no "right" or "wrong" way to express yourself creatively.

www.kiraoreilly.com

Every market is saturated

I highly doubt there will ever be consensus on the right "mean" price or quality for services, which makes the idea of a guideline a total unicorn, but it doesn't matter.  Having an interest group putting together "guidelines" (setting a minimum and maximum price) regardless of the cost of production, experience of the photographer, level of service, and quality of the product is as ludicrous as suggesting that Gap should be allowed to dictate how much WalMart and Chanel charge for a pair of pants.  When one technique or trend saturates the market, it actually drives innovation, and WalMart making knock-offs and riding on the coattails of the industry has no effect on Chanel's bottom line.  Johanna Blakely did a stellar job of explaining this phenomenon in her TedTalk here:

In order to understand the vast array of prices in any industry, you have to place equal consideration on a) the business owner's financial goals and b) consumer priorities, which are both affected by not only individual preferences and value systems but changes in the economy.  While it's easy to get why people spend less money during a recession, even when the economy is booming and it's likely that we can charge higher prices, that still doesn't mean someone will pay us just because it's what the market will supposedly bear.

FINANCIAL GOALS

Let's take a closer look at the business owner's financial goals first.  (I say "goals" and not "needs" or "wants" because sometimes it's hard to make a differentiation between those two.)  As a business owner, in order to make "enough" you have to first understand what your financial goals are.  That will be the "magic" number you need to base your pricing on, not what everyone else is charging or some arbitrary fixed price "industry standard."

~insert mental image of lemmings here~

Equally important is realizing that whether "enough" is breaking even, making spare change, or not bankrupting yourself while traveling to exotic locations to take master photography classes, if you happen to live in a mansion and drive Lambourghinis, "enough" will be substantially higher than someone who lives in their VW van and just needs to cover insurance, gas and meals.  And, I should point out that what a person charges isn't necessarily a reflection of skill or ability or how much they "value" their work as a photographer, but that's another post entirely.

"I just need to pay my bills"

For some, the financial goal is to make enough money to pay the bills and maintain their current standard of living.  "Enough" means covering the mortgage, the car payment, the utilities, and groceries while socking a bit away for retirement and annual vacations.  In order to determine how much to charge, this individual needs to take into consideration how much he will need to "break even."

You wouldn't tell a guy who pumps gas on the weekend he does it for a "hobby."

For some, the financial goal is to supplement their primary income, and whether this is to make ends meet or to afford luxuries affects how much is "enough."  If the goal is to make ends meet, then the rate charged would be calculated to offset the deficit, whereas if the goal is to create a travel fund, "enough" will be calculated to reach that travel budget.  I also want to point out that I personally know photographers who take on part time jobs to supplement their photography income.  Having two jobs is not abnormal and in some instances is almost a cliche, such as actors who wait tables while waiting for a big break.  I am still waiting for someone to explain to me why the photography industry should be exempt from permitting those seeking part time supplementary income from hanging out a shingle.

"My hobby supports itself"

For others, the financial goal is simply not having something they love passionately cost them a second mortgage.  Photography is an expensive sport - from equipment to workshops, even for those who shoot primarily for pleasure, there are very real costs to be covered.  In much the same way a professional snowboarder may score sponsorship when their work gets noticed, some "hobby" photographers with no intent of going "pro" receive free gear in exchange for endorsements.  Some people manage to trade services in a bartering system - paying for oil changes and salon visits with photos leaves cash available to spend on lenses.  For the rest of us, finding the means to continue doing something that we love means selling prints or taking on paid gigs.  This particular group is unique because they would find a way to shoot even if they never got paid a penny for it.  They seem to never forget the reason they pick up a camera: for love.

Not everyone wants the same sized piece of the pie

It is important to remember that financial goals are not static - whether we wish to buy a bigger house or sell everything and live as a minimalist will increase or decrease how we calculate "enough" for ourselves.  The tiny house movement is proof that "lowering your standard of living" is a valid choice for having more financial freedom, which for some means working for less money or fewer hours and using the time and money they don't spend on a mortgage to travel.  It is therefore a fundamentally huge mistake to assume everyone's financial goal is to make or have more.

WORKSHOP: *If you'd like to know how to calculate how much is "enough" for yourself, I have a workshop on February 12th, 2017 that will show you how to identify your business goals, prepare a simple household budget, calculate your cost of doing business, and come up with your very own personal magic pricing formula.  In the afternoon, I'm doing an intro to basic bookkeeping.  While this is geared towards photography, the workshops apply to most small and home-based businesses.

~~~

CONSUMER PRIORITIES

Now that you (hopefully) understand why pricing seems so inconsistent, we need to take a closer look at the other half of the equation, which is consumer priorities.  These will determine why an individual is willing (or unwilling) to pay what you've decided is "enough" for you.  Their finances, thoughts, feelings, circumstances, value system, aesthetic tastes, and a myriad of other real and imagined things will factor into their decision on who they will hire as their photographer, and how they prioritize these factors will occur in spite of not because of price fixing.  In fact, I am about to show you how small a part pricing actually plays in the big picture.

Here are the primary reasons a consumer may not choose you as their photographer for financial reasons:

• you are charging more than they can afford
• they think you are charging more than you are worth
• they don't think photography is worth the price you (or anyone else) is charging
• you are not charging enough

While it's true, there will always be the price shopper who will invest in the cheapest possible option regardless of quality, generally, how you price yourself is merely a starting point for consumers.  Before they decide to invest in your services, there will be a complex process of decision making, much of it subconsciously.  Understanding the consumer therefore plays a more important part in your success than what you set your prices at.  Let's assume you charge about $5000 for a full day wedding and compare two potential brides.

A tale of two brides
Bride A and her fiance work hard for their money.  She is a Social Worker and her husband makes a respectable living as the HR director for a major national chain store.  Her student loan is almost paid off but they just had to buy a new car because the college beater "second car" just died a slow painful death.  Their wedding is important, but not so important they are willing to forego a killer honeymoon and future plans to move from their condo to a house and start a family.  While they hope to spend less, the ceiling on their wedding budget is $20,000 and they already know that half of that is gone on food, booze, and the venue.  This leaves $10,000 for the dresses, tuxes, limo, flowers, wedding party gifts, guest favours, DJ, videographer, decorations, HMUAs, and - the most important thing - their honeymoon.  Even if they can technically afford $5000 for your services, you still might not get hired.  Why?

Bride B has a virtually limitless budget.  Raised with a credit card she was free to rack up at any time and Daddy's blessing to spend as much as she wants on her wedding, money is no object.  She wears Louboutins to the gas station, gets her roots done every 3 weeks, and spends an average of 2 hours a day tanning, working out, and moisturizing.  She can spot a fake Coach bag at 50 paces.  Despite her charmed upbringing in an affluent family, she is highly intelligent and has a business degree.  She is a successful realtor, and her and her husband - a corporate lawyer - have high expectations regarding both quality and customer service.  She has already dropped $15,000 on her wedding dress and has hired a respected somewhat notorious wedding planner to handle the details she simply doesn't have the time for.  Even if they can technically afford $5000 for your services, you still might not get hired.  Why?

So if it isn't the money, then what?
Choosing a photographer isn't only driven by finances.  Here are several reasons a consumer might not choose you for non-financial reasons:

• they don't need what you specialize in
• they want traditional posed bridal and you specialize in candid lifestyle bridal
• the want traditional posed bridal and you specialize in boudoir
• they want traditional posed bridal and you don't specialize in anything
• you don't have any or enough experience
• they don't like your style of lighting and posing
• you don't have references or testimonials
• your SEO or social media presence sucks and no one knows you exist
• you don't have a website and look unprofessional
• they found your website clumsy or difficult to navigate and moved on
• your server was down that day and they got a big old 404
• your website is ugly or they hate your company colours
• they read all the typos in your bio and think you're illiterate
• you have music playing on your website that they dislike
• they hate all music that autoplays on websites
• you replied to their inquiry too enthusiastically and seem desperate
• you didn't reply to their inquiry fast enough
• you're not available on the date they need you
• they heard bad things about you
• you're not famous
• you're not on the wedding planner's suggested vendor list
• they got a referral for someone who didn't happen to be you
• they got an endorsement for someone else from a trusted source
• their photographer is a close friend or family member
• someone else is paying for it and they have no choice
• they would prefer someone who shares their religious views
• they forgot the name of your company or didn't bookmark the website
• they want a female photographer and you're a guy
• they want a gay photographer and you're straight
• you're trans or gay or black or look too Muslim and they're xenophobic
• they found something offensive or that contradicts their politics on your social media
• they used you once or twice and were dissatisfied
• they used you for years but wanted to change things up
• circumstances changed and they no longer need or want your services
• they think your company name sounds stupid
• they met you and you didn't click
• you were 13th on the referral list and they are superstitious
• you lost the coin flip
• Mercury was retrograde and you're a Scorpio
• Tuesday was just not your lucky day

http://aashi1903.blogspot.ca/2014/07/the-buying-decision-process-five-stage.html

WORKSHOP: *If you'd like to learn about appealing to different demographics, you might want to the workshop on February 26th, in which we will look at how certain characteristics like age, income, and cultural capital impact the way you need to sell to and retain clients, and look at some tips and tools for breaking into new markets and put the baby on the thistle.  From social media to social statistics, this workshop will leave you inspired and geared up to get going, whether you're a new company or wanting to reinvent the one you've got.

What's the solution?
All of these non-financial reasons are precisely why setting industry guidelines or standards is unrealistic.  There's no one-size fits all pricing model that accounts for the photographer's personal goals - WalMart doesn't appeal to Gap clients, and Chanel doesn't care if you can get cheaper pants at Gap.  Likewise, a person willing to buy $500 pants at Chanel isn't interested in WalMart price rollbacks or the spring clearance sale at Gap.  My dirty hippy heart loves the idea of a socialist approach to photography but my intent would be to invent a sliding scale and fix income equality with better taxation and distribution of wealth, but that ain't happening either.  ~sigh!  But again I digress...

So what, then, is the solution, if not setting industry guidelines?  Without the luxury of simply teaching everyone how to pay themselves minimum wage after expenses, it is simply this: spend more time minding your own business, both literally and figuratively.  The time and energy spent criticizing other people's business model or pricing is time that could be better spent building a following on social media or sorting your receipts.  Or shooting.  Not only will you be feeding into growing your brand and business but you'll also be feeding your mental health.  And if you want to empower others and engender a realistic "community over competition" that doesn't require assimilation to the norm by telling others what they shouldn't do or telling them what you would do, encourage them to figure out what their personal "enough" is and go from there.  Not all of us will become full time rich famous successful professional photographers, but we can all find our niche, even if that niche happens to be just a GWAC who pays out of pocket to take pictures that make him happy...

Now go on.  Get out there and make it work so you can do what you love.  #shutupandshoot

Tax time!!!

This is a note out there for my photography friends as well as any other small businesses who are collecting GST.  As a rule of thumb, we all like to pay as little in taxes as possible.  GST, unlike income tax, is a simple in-out equation.  While some people feel like when they owe GST at the end of the quarter or year they are losing "income" the truth is that it was never your money to begin with, and if you owe GST it simply means that you collected more GST than you spent.  Translation?  You a) made a profit or b) need to buy more things in Canada so you can claim input tax credits (ITCs).

Unfortunately, lots of small business owners and sole proprietorships deposit their GST in the bank and spend it, resulting in a huge IOU to the feds and no cash to cover it.  Here are a three easy tips that will help you avoid getting caught grabbing your ankles with your pants down.

1) Deposit GST in a separate account as it is collected.  Rather than depositing your GST in the same account as your income and expenses where it can deceive you into thinking you have cash to burn, you might want to consider stashing it away in a separate account.  The easiest way to do this is to go directly in to the bank to make your deposits or develop a habit of logging in to your online banking after depositing funds and manually transfer the GST the same day.   Keeping your GST completely separate will make it 100 times easier for you to not accidentally spend the GST you've collected, especially if you aren't keeping your books regularly.

2) Opt in to file quarterly instead of annual GST returns.  Lots of small businesses do what bookkeepers refer to as "shoebox accounting" meaning, you throw all your receipts into a figurative (or maybe literal) shoebox and hand it over to your accountant or tax prep guy when it's time to file your annual return.  By signing up for quarterly remittances you will get into the habit of setting aside a few hours once every 3 months to track your income and spending.  The bonus side effects of filing quarterly are smaller GST payouts and pretty good idea of your company's success!

3) Learn how to keep your own books.  I assure you that in tax prep world, every person who gets handed that "shoebox" dies a little on the inside.  You don't need to be a certified accountant to do your own bookkeeping, and with so many options ranging from free to still totally affordable software out there, you're sure to find one you love.  Wave and Google Drive spreadsheets are my personal favourites, but you may want to check out Quickbooks, Kashoo, Studiocloud, Freshbooks... While it might take a bit of trial and error figuring out which one works with your business model and budget, the awesome part is when it's time to file your GST instead of having to manually wrangle a huge stack of receipts and contracts into some kind of order so you can do manual calculations, you simply hit "Print GST audit report" and it's all done for you.  Ba da bing.

I teach basic bookkeeping using Waveapps.  If you're interested in joining us for a day of guided tax prep on Saturday, February 15, 2014, please feel free to sign up here or contact me via the form on this blog.  Cost is $150/person with a maximum of 8 participants.

muchLOVE,

Hopeypoop

dirty little secret: what to do when a client leaves you

You've had a great relationship with your client for years then one day out of the blue WHAMMO - their new Facebook profile picture (that you didn't take) is accompanied by the caption, "~photographer that is not you~ is the Best.  Photographer.  Ever!"  Or maybe you bent over backwards to accommodate someone and earn their loyalty by giving them a break on pricing but see that a few months later they have new photographs posted by a different photographer who is easily twice as expensive as you.  Or maybe a family member or close friend hired someone other than you for their wedding.  You're hurt, angry, and feeling betrayed.  What is the appropriate response?

First, and most importantly, make no assumptions.  You have NO idea why they chose to use a different photographer, and no right to know.  Maybe they got a Christmas bonus.  Maybe the other photographer had a sale.  Maybe they got bored with you.  Maybe you offended them.  Doesn't matter.  As another photographer put it, "You don't buy all your clothes at one store to protect the other store's feelings..."  Rather than project onto your client, use the opportunity to review your business model.  Were you price shopped on a special?  Did they not like the pictures?  Did you take too long delivering your products?  If you have an ongoing problem with client retention then you probably need to make some changes.  But if it's an anomaly, chances are very very good that they went elsewhere for reason(s) beyond your control.  If they love you, they will be back, and if they don't, then you didn't want them anyway.

http://offbeatbride.com/2013/12/funny-engagement-photo-poses by Malia Moss

Next, unless you know you did something wrong, do not take it personally.  If you think you *might* have offended or disappointed them I suggest you only ask if you won't act defensively should the answer be yes.  If all you're going to do after hearing an answer you don't like is defend yourself or accuse them of being too sensitive/backwards/narrow-minded then it's probably best to leave well enough alone.  If you do ask and they say yes, you do NOT have to apologize for offending or disappointing them (none of us can control what offends or disappoints other people) but it would be proper etiquette to apologize that they feel offended or disappointed, and let them know it was not intentional.  If you feel so inclined, you can even ask if there is anything (within reason) that you can do to make it up to them.  This shows that you value their thoughts and feelings.

(fill your own apology like this one in online by visiting here!)

Lastly, be gracious.  The same way you have no control over what offends or disappoints anyone else, your bruised ego is not your client's fault.  Unfriending, deleting their sessions from your blog, a mutual friend (or you) leaving a passive-aggressive statement like "These are almost as nice as the pictures ~insert link to your website here~ took last year!" or sending a private message explaining just how awful their new photographer is and why...  totally not cool.

Now, if you find it difficult to keep from feeling hurt, you are welcome to unfollow or unsubscribe from the person's tweets or status updates or whatever, but if you hope to be on the list of contenders the next time they need photos I suggest you suck it up and leave a polite, honest comment on the new photo.

Pinterestfail.com

Even if the pictures are not what you consider to be great photography a simple note saying, "You guys look great!" or "My, the kids have grown!" not only puts your former client at ease about your openness to them coming back after "cheating" on you, but has the pleasant side effect of making you feel like a bigger person.  And if the photographer did a really great job, slip in a compliment - we all love getting a nod from a colleague, especially when it's someone we admire and respect!  So go on - be nice!  You'll like it, I promise!

DLS 2014 dates (finally!!!)

FINALLY!!!  Dates are nailed down and the workshops have been given a fresh new overhaul for 2014.  At a glance, here they are:

January 19*, 2014 - it's not about the camera (new date!)
February 9,  2014 - composition, understanding light
March 2,  2014 - technical critiquing, photo manipulation
March 30,  2014 - portraiture and controlled lighting
April 27,  2014 - the business end of things I
May 25, 2014 - the business end of things II

Workshops are $150 each.  A discount of $25 per class applies when you sign up for 2 or more, or $50 per class if you take the complete series.  Zip me a message about payment plan options :)

Sunday, January 19, 2014 - it's NOT about the camera

Start time: 10am

Finish time: 5pm

When someone says, "Your camera takes nice pictures!" if you're shooting in Auto, they are indeed correct - your camera is taking the picture.  This workshop will take you an on in-depth exploration of exactly how your camera works, all the fancy accessories you can get and what they are for, and the REAL reason virtually any camera can take nice pictures: YOU.  In addition to checking out pretty much every piece of camera and studio equipment in My Edmonton Studio, you will begin to develop a solid foundation in understanding the technology upon which every camera in existence is based: the Law of Reciprocity.  We will learn the differences between wide angle, fish eye, macro, micro, telephoto, pancake, and specialty lenses like tilt shifters and lensbaby, discuss RAW v. JPEG, explain the difference between DPI/PPI v. pixels and digital resolution, learn about Depth of Field (DOF) and how it "makes stuff blurry in the background" and more. You will likely have a shopping list when this class is done, but save your pennies for now... because it's not about the camera.  Find the Facebook event HERE.

Sunday, February 9, 2014 - composition, understanding light

Start time: 10am

Finish time: 5pm
This day is dedicated to the two most basic elements of photography: composition and light.  The first portion will allow you to get a firm grasp on strong composition and understand how composition is used to clarify, create context, and intrigue viewers.  We will explore how to make negative space active and learn why sometimes it's best to break the most common rules of composition to work to your advantage.  Then, despite living in Alberta, where the weather can change in literally minutes, we will learn how light is 100% predictable.  When you understand exactly how light works, you will be able to use this knowledge to create images using natural, available and controlled light.  You will learn how to guesstimate your camera's settings in manual as well as look at situations when you may want to use aperture or time priority and what the trades offs are when using long or short shutter speeds, wide or deep apertures, and high or low ISO.  WARNING: this class involves heavy use of sparklers and/or glow sticks. Find the Facebook event HERE.

Sunday, March 2, 2014 - technical critiquing, photo manipulation (in Adobe Photoshop)

Start time: 10am

Finish time: 5pm
Learning how to deconstruct images you are looking at will help you recognize things like lighting set-ups, identify lenses and focal lengths that your prefer, and recognizing the elements that attract you.  This will ultimately assist you in developing your style through the lighting set-ups you choose, the lenses you invest in, the design elements and composition you employ, and finally the post-processing you apply when finishing your images.  The Photoshop portion is a play-along demo; students will be given a set of 2 - 4 images to work with and we will walk through several techniques as a group that will hopefully help you get your feet wet and feel more comfortable with the PS environment.  By the end of the demon you will have used most of the tools in your palette while playing with levels, curves, skin retouching (3 techniques), liquify, masking, layers, and more.  Time permitting, we will also write a basic action for applying a watermark and apply it using a script.  Find the Facebook event HERE.

Sunday, March 30, 2014 - portraiture and controlled lighting

Start time: 10am

Finish time: 5pm
Not gonna lie - posing is important, so we will learn lots of tips and tricks for posing individual men and women, infants/babies, children, groups, and families - but the MOST important part of your job as a photographer is to make your subjects feel as comfortable and relaxed in front of the camera so that their own personality can shine through (even when their personality type is awkward...)  Throughout the day, we will be practising on each other as well as several models and while we are doing that we will be experimenting 3 different lighting set-ups - single off-camera flash, 2-piece continuous fluorescents, and 3-piece Alien Bee strobe kit - as well as 3 different types of sets - continuous paper, a creative set, and a "typical" living room.  Find the Facebook event HERE.

Sunday, April 27, 2014 - the business end of things I

Start time: 10am

Finish time: 5pm
Do you need a business license?  Should I register my company name? How do I open a bank account?  Why do people trademark their images?  How do I get a bank loan?  What can I write off on my taxes?  Do I have to collect GST? How much should I be charging for my services?  This just barely scratches the surface of all the questions you are going to have about setting up shop, and in one long, whirlwindy kinda day we are going to dance our way through all the intricacies, and then maybe celebrate decompress with a glass of well-earned wine... find the Facebook event HERE.

Sunday, May 25, 2014 - the business end of things II

Start time: 10am

Finish time: 5pm
Marketing plans, campaigns, promotions, schedules, business management software, social media, integration platforms, websites, SEO optimization, branding/rebranding, blogging, bonding, networking, referral programs, products, packaging, consultations, complaints, customer feedback, Facebook contests, rewards, client gifts, developing a corporate identity, logos...  yeah, that kind of day.  Bring coffee.  Find the Facebook event HERE.