MARKET PRICING COMPARISONS

FOR MY PHOTOGRAPHY BUSINESS

By Melissa H

Introduction Business in operation for 6 years

Market pricing comparisons for my existing freelance photography business

Grow business from mainly family and friends to wider clientele

Expand business to do indoor studio photography

Access to studio space for $15 per hour

Gathering Information

Math concepts used in figuring price comparisons:• Percentages• Average, median, range• Estimates and rounding• Gross and net profits

Gathered information via: phone calls, personal contacts, brochures/fliers, and company websites

Comparisons of high and low end businesses (freelance and national chains) that I view as my competition

Goal & Hypothesis

Compare prices of services from some main competitors

Goal: Offer more services to wider clientele and increase profitability

Hypothesis: Walmart would be most affordable for both printing and their in store PictureMe studio prices

Comparisons

Local & National Photography Studios

Printing Services

Comparison Pricing Scenarios

Studio ComparisonsLocal

PhotographerWalmart

PictureMeJCPenney Sears

Sitting Fee* $0 $0 $10/person $40/group

Charge for 8x10 $22 $10 (natural)$20 (enhanced)

$10 (min. $100

order)

$10-15 (package pricing)

Charge for CD* $45 $100 $150 $50

* Sitting fees variable with seasonal pricing and coupons. Above prices listed are regular, non-seasonal prices. CD’s all require package purchase for listed price.

Printing Service ComparisonsNichols Lab Inkley’s Shutterfly Walmart Walgreen’s

8x10* $3.20 $4.99 $3.99 $2.84 $2.99

CD $5 Must order w/prints

$9.99 $2.50 $3.49

* Prices for 8x10 are being used in the comparisons because of the high cost of printing them versus the nominal cost of smaller print sizes.

Range of net cost for an 8x10: $4.99 – $2.84 = $2.15176% difference between lowest to highest

ScenariosScenario 1 Scenario 2 Scenario 3 Scenario 4

$0 sitting fee

$50 CD

Charge for 8x10Print: $15/1 print

Charge for time:$100/1 hr.

Gross profit = $165

$0 sitting fee

$50 CD

Charge for 8x10Print: $15/1 print

Charge for time:$50/1 hr.

Gross profit = $115

$15 sitting fee

$40 CD

Charge for 8x10Print: $10/1 print

Charge for time:$35/1 hr.

Gross profit = $100

$30 sitting fee

$30 CD

Charge for 8x10Print: $5/1 print

Charge for time:$100/1 hr.

Gross profit = $165

Scenario Comparison TableSitting fee

minus cost of studio space

Charge for CD

minus my cost *

Charge for 8x10 prints minus cost of prints:

My time

Net profit

Walmart (low)

Nichols (median)

Inkley’s (high)

1 $0 - $15 = -$15 $50 - $1 = $49 $15 - $2.84 = $12.16 $15 - $3.20 = $11.80 $15 - $4.99 = $10.01 $100 $144 - 147

2 $0 - $15 = -$15 $50 - $1 = $49 $15 - $2.84 = $12.16 $15 - $3.20 = $11.80 $15 - $4.99 = $10.01 $50 $94 - 97

3 $15 - $15 = $0 $40 - $1 = $39 $10 - $2.84 = $7.16 $10 - $3.20 = $6.80 $10 - $4.99 = $5.01 $35 $80 - 81

4 $30 - $15 = $15 $30 - $1 = $29 $5 - $2.84 = $2.16 $5 - $3.20 = $1.80 $5 - $4.99 = $0.01 $100 $144 - 146

* After making price comparisons of CD printing services, I decided it was most profitable to burn the CD’s myself.

Estimated Monthly Net ProfitsProfits per appointment Average appointments

per month (2 - 3 per week)Monthly Profit

1 $144 - 147 10 $1440 - 1470

2 $94 - 97 10 $940 - 970

3 $80 - 81 10 $800 - 810

4 $ 144 - 146 10 $1440 - 1460

Range of net profits: $800 – 1470

184% difference between lowest to highest

Conclusion

The final pricing for my services directly impacts my profitability

Though Nichols Lab is not the least expensive choice, they offer time saving additional services for a nominal difference when compared to Walmart

My hypothesis was correct, but my final choice for printing services considered more than just cost alone