Costs In Producing Photos
Do you know what your costs in producing photos are? If you don't know what your costs are, how do you set your prices?
- Pick from a hat?
- Match the competition?
- Under price the competition?
- Set a price that sounds good?
Actually, only professionals have costs in producing photos! Amateurs, aka non processionals, have zero cost in producing photos.
Non-professionals have a 0, zero cost. It's not me who says so, it's the CRA1 said so. Other tax collection agencies have very similar rulings. Non-professionals have a hobby called photography, just like skiing or kayaking. They do not use their camera to earn an income, therefore there is no cost. The hours spent taking photos and processing them with Photoshop/Lightroom/Aperture, do not count. It's not me, who says so, "It's the law".
Professionals have many costs:
- Equipment: cameras, lenses, lights..
- Computers: software, backups...
- Internet: website, email...
- Marketing: mailings, books...
- Office: rent, hydro, insurance, office equipment and supplies...
- Training: seminars, continuing education, books, magazines...
- Transportation: car, train, plane...
- Props & models...
- Staff: My big failing, I am a control freak and don't hire anybody. I do have some friends that I "use and pay" by the project.
- Time: The time spent on photography can't be use to earn any other income.
You should spend a day or two figuring out what are your costs and what's your break-even point. I calculate my break-even point per month, set what my profit should be. From that, I calculate what my daily and half daily rate is.
Do you know what your costs in producing photos are? If you don't know what your costs are, how do you set your prices?
- Pick from a hat?
- Match the competition?
- Under price the competition?
- Set a price that sounds good?
Actually, only professionals have costs in producing photos! Amateurs, aka non processionals, have zero cost in producing photos.
Non-professionals have a 0, zero cost. It's not me who says so, it's the CRA1 said so. Other tax collection agencies have very similar rulings. Non-professionals have a hobby called photography, just like skiing or kayaking. They do not use their camera to earn an income, therefore there is no cost. The hours spent taking photos and processing them with Photoshop/Lightroom/Aperture, do not count. It's not me, who says so, "It's the law".
Professionals have many costs:
- Equipment: cameras, lenses, lights..
- Computers: software, backups...
- Internet: website, email...
- Marketing: mailings, books...
- Office: rent, hydro, insurance, office equipment and supplies...
- Training: seminars, continuing education, books, magazines...
- Transportation: car, train, plane...
- Props & models...
- Staff: My big failing, I am a control freak and don't hire anybody. I do have some friends that I "use and pay" by the project.
- Time: The time spent on photography can't be use to earn any other income.
You should spend a day or two figuring out what are your costs and what's your break-even point. I calculate my break-even point per month, set what my profit should be. From that, I calculate what my daily and half daily rate is.
