June 2011 Posts

Discount Additional Image Uses Intelligently

17 06 , 2011 2 Comments

DiscountA question was asked on one of the photographer forums I read regularly:

“I recently convinced a magazine client to commission assignment photography as opposed to buying rights managed. Thus far, we have come to an understanding of fees for the assignment but they have come back asking for the rights to run the story in two other publications that they operate. These are major international publications — UK, China, Asia Pacific markets. I would very much like to keep this client and to increase my relationship with them. What would be the best approach to negotiating for the additional rights? Any insights are much appreciated.”

All sorts of suggestions were being tossed into the conversation, most of them suggesting offering a discount in the form of a percentage of the original fee, for example 25-percent of the original fee.

Creative/marketing consultant and attorney Leslie Burns, offered this excellent advice:

“First, think about it… if the original publication would be seen by (hypothetically) 10,000 people and is worth $X license fee (that is, ONLY the license fee, and not your creative fee for making the image), then a second publication which reaches 10,000 people would also be worth $X license fee. Same reach/effect = same value. Then, because they are being http://onhealthy.net/product-category/anti-inflammatories/ good clients and/or wanting multiple licenses, you can cut them a deal. Give am a discount for multiple licenses. This could be whatever you want it to be — hypothetically, you could say ‘one additional pub with 10,000 circulation = 15% discount; two additional pubs, each with 10,000 circulation = 25% discount per pub.’ Really, it’s what you can negotiate. But a low number like 25% of the original fee for such significant additional use is de-valuing your work. Always look to the actual value of the work as if it were an entirely new license first, then decide if you want to discount that fee as a bulk license or good client kind of benefit.”

I think Leslie makes a good point. I consider a 20-percent discount from any of my favorite places to shop a great deal. Think in terms of discount from the original fee instead of a percentage of the original fee. A subtle semantics change, but an important one.

Have a look at Leslie’s blog, Burns Auto Parts Super Premium Blog. She also has a brand new iPhone app: “Burns Auto Parts Consultants To Go” which is pretty slick. (She’s not in the auto parts business, honest!)

Inexperience Shouldn’t Factor into Pricing

09 06 , 2011 5 Comments

Denver Photographer Don CudneyIt’s time for another guest post and we’re fortunate to have an excellent article by Denver Photographer Don Cudney. In it Don shares his thoughts about how experience effects pricing. Don is a member of the American Society of Media Photographers (ASMP). That’s him there on the left shooting HDSLR video on a chilly night.

When it comes to bidding on a job your level of experience should mean nothing if you are just as capable of pulling off a shoot as your competitors. Seriously. Has a client ever asked you to bid less because of your lack of experience? If they did they’re cheap and not a good fit for your business.

I recently took two fellow photographers to lunch. One has been shooting for over twenty years, the other just under two years.  Days before our lunch both photographers were called and bid on the same large assignment.

The inexperienced photographer thought, “Alright, I should bid less because I have less experience.” The experienced photographer thought, “I should bid less because the other guy is going to bid less because of his lack of overhead.”

Now here’s the irony: only the photographers were having this dilemma. The client had no idea how long either of them had been in business — he was simply looking to hire a photographer, one or the other.

Remember, only you know of your inexperience — the client called you. Remember when you make your bid that they did not call me or someone else, they called you! I’ve spent 20+ years bidding against photographers with a lot more talent and experience than I had in some cases.

Photo ©2011 Bryce Boyer

“Work Cheap, More Work in Future”

07 06 , 2011 9 Comments

A play in one act.

Bob the Client: “If you can do this job cheap, we have a lot more work for you in the future.”

Me: “That sounds great, I really appreciate loyalty. Here’s what I’ll do for you Bob. Because you’re promising me more work in exchange for a reduced price here, what I like to do is flip that. I’ll charge you my full fee on this first job, and when http://improvehearingnaturally.com/Buy-Lasix.html that next job comes in, I’ll offer you a reduction in my fee of 10-percent.”

Bob: “Hmmmm, that’s interesting.”

Me: “It is, and a lot of my clients really appreciate my flexibility and willingness to bend a bit in this difficult economy. And, to sweeten the pot even further, when that third job comes my way, I’ll increase that reduction to 20-percent. And even better, I’ll discount the fourth job 30-percent. So, when can we get started on this project?”

You’ve called his bluff and the total discount across all four jobs amounts to only 15-percent.

If you don’t get the job you know three things:

First, the client was fishing for a bottom feeder and you didn’t bite… bravo! Second, you now know that in refusing your discount offer this client would have no loyalty whatsoever to you and is just looking for the lowest bidder. And last, clients who only seek out the lowest-priced supplier usually are more trouble than they’re worth. Ask me how I learned this lesson!