Negotiating + Pricing Posts

Let Me Practice on Your Big Day

30 03 , 2010 3 Comments

Many, many readers have read and commented either here on Groozi or privately to me about the post “Score This: Photog 1, Cheapskate 0”. We’ve all shared a good chuckle, perhaps to conceal our nervousness about the state of our industry. But any professional photographer will tell you that their business is being eroded as a result of inexpensive digital cameras that take amazingly good pictures and a growing attitude that, “those pictures are good enough.” Amateurization and crowdsourcing have combined to create an entire body of photography that can be had for a song, primarily because the creators of these images don’t realize the value of the images they have created.

Photographer and author John Harrington wrote a blog post titled, “The REAL New Frugality – TIME [Magazine] Style” in which he talks about how an amateur photographer left about $2,700 on the table by selling a photo he took to TIME for its cover for $30!

Buyers of photography are becoming accustomed to the dropping prices for images. After being asked to use one of his iconic images in exchange for a credit line, Chicago photographer Joe Pobereskin recently blogged, “Do you ever wonder what a photo credit tastes like? How about this: do you ever wonder how many miles per photo credit (MPCs) your car gets? I do.” Read entire post. And even Seth Godin, today blogged, “The reality of digital content (lose the cookie, lose the fortune?)” in which he ponders the economic futures of photographers and writers in this digital age.

Katrin Eismann, chairwoman of the Masters in Digital Photography program at the School of Visual Arts in New York said in a New York Times article, “Can an amateur take a picture as good as a professional? Sure,” Ms. Eismann said. “Can they do it on demand? Can they do it again? Can they do it over and over? Can they do it when a scene isn’t that interesting?” And that, I think, pretty much is what separates the pros from the amateurs.

But no doubt, professional photography is changing. The cost of entry to the industry has dropped dramatically forcing pros to seek out ways to differentiate themselves from their competitors lest the product they produce becomes comoditized. They must ask themselves, “What value do I bring to the client that my competitors do not?” and then talk it up during that initial phone conversation when the prospective client calls.

Gallery owner and photography educator Thomas Werner recently brought this to my attention: The San Francisco Museum of Modern Art held a symposium to which examined the current state of photography. They posed a question to the 13 invited participants to the symposium’s central question: “Is photography over?” It’s fascinating reading.

Richard Anderson, photographer, digital standards expert and the driving force behind dpBestflow, was interviewed by Ethan Salwen for the “AfterCapture On Photography” blog recently. The post was titled, “It’s About Professionalism, Stupid” and is a good read.

Mr. Salwen closes with: “I agree with Anderson that this is the most exciting time in the history of photography. How one does or doesn’t make money in this golden age of photography will continue to be a challenge. But whether or not is focused on making money from photography, thoughtful photographers trying to make great images must continue to take advantage of evolving technologies. This requires addressing the craft of photography with professionalism.”

I thought I’d close this entry with something Barrie Spence brought to my attention in a comment to that “Score This…” post. This is an ad that appeared on Scotland’s Gumtree, which as far as I can tell, is sort of like the USA’s Craigslist. It too might elicit that same nervous laugh…

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Score This: Photog 1, Cheapskate 0

12 03 , 2010 44 Comments

We’re all pretty tired of being asked to shoot on spec, shoot for a low fee with the promise of more work, and that sort of nonsense. These two ads appeared on the Seattle Craigslist over the past two days. I think you’ll enjoy reading…

Need Photographer (originally posted March 10th)

We are a 5 person construction company and need to update our website and brochure with NEW images of our staff. We would like to give an opportunity to the right photographer to take our company images. Ideally we need a formal and an informal picture, also a landscape shot of our company vehicle. Basically these pictures will help us get off the ground and renovate our website.

If you do a good enough job on our company portraits then you will ideally be awarded a future PAID contract to take pictures of our job sites (once we get a job!). We will want to have the rights to be able to use the photos on our website and brochure/print media. You will get a boost to your portfolio!

Experience in corporate photography along with a portfolio is a MUST or your email will be disregarded. We are looking at scheduling the shoot within the next week so be prepared to move fast!

And then a clever photographer posted the following:

Need Construction Crew (originally posted March 12th)

We are a 5 person photography company and need to update our photography studio and shooting space with NEW office spaces for our staff. We would like to give an opportunity to the right construction crew to build our new company digs. Ideally we need a formal and an informal working space, also a landscape crew for our out side shooting area. Basically these structures will help us get off the ground and renovate our old space.

If you do a good enough job on our company building then you will ideally be awarded a future PAID contract to build structures of our photography clients (once we get a job!). We will want to have the rights to be able to exploit you as we see fit just for credit and a great job! You will get a boost to your structure building skills!

Experience in corporate building along with a portfolio is a MUST or your email will be disregarded, after all beggars can be choosers. We are looking at scheduling the construction within the next week so be prepared to move fast!

I don’t know who the authors are, if they care to be identified, I’ll add proper attribution if they contact me. What do you think?

These Six Books Are Must Reads

04 03 , 2010 8 Comments

OK, I admit it, I have a Kindle and I’ll probably buy I bought an iPad. I’ve been a voracious reader ever since I can remember. Here’s a list of books I’ve read that have really made an impression on me, some new, some older, but all still available. I’ve listed them below in no particular order.

Please let me know what you’re reading in the comments, I’m always looking for a few suggestions!

Linchpin: Are You Indispensable? (Hardcover)
by Seth Godin
A linchpin, as Seth describes it, is somebody in an organization who is indispensable, who cannot be replaced—her role is just far too unique and valuable. They are, after all, the essential building blocks of great companies. To not be one is economic and career suicide. Learn about your “lizard brain”. Seth’s on the A-list of speakers for business and he’s the only speaker I know of that has his own action figure! You read his daily blog don’t you?

Negotiating For Dummies (Paperback)
by Michael C. Donaldson
Yes, it one of the yellow “For Dummies” books we’ve all seen, but this quick read will get you from “zero to sixty” in no time at all. Read it and put the concepts into practice, you’ll amaze yourself at how well they work and help you to get what you want in a negotiation!

The 7 Habits of Highly Effective People (Paperback)
by Stephen R. Covey
One of the must-haves for anyone in business. It’s one of those I go back to from time to time for a quick re-focus of what I need to do to be successful. Enough said.

Value-Added Selling : How to Sell More Profitably, Confidently, and Professionally by Competing on Value, Not Price (Hardcover)
by Tom Reilly
Hands down, the book that’s helped me the most in my business. Adding perceived and actual value to the product we sell, photography, is the key to being able to increase your fee on a per job basis. I’ve just ordered Tom’s new book, Crush Price Objections: Sales Tactics for Holding Your Ground and Protecting Your Profit but haven’t started it yet. I’ll probably get started on it this weekend on my flight to WPPI in Las Vegas.

The Little Big Things: 163 Ways to Pursue Excellence (Hardcover)
by Tom Peters
We’re in a people business. Next to your creative eye, your “people skills” are the most important asset you own. I managed to secure a pre-publication copy of this fantastic book. You can pick it up, read a few tips, leave it and come back to it any time. Tom is one of the best writers around on business management, his real-world examples are worth the look, I guarantee you’ll learn something.

Little Red Book of Selling: 12.5 Principles of Sales Greatness (Hardcover)
by Jeffrey Gitomer
No matter what you do for a living, you’re a salesperson first. You’re selling every day, whether it to potential clients or your spouse and children. This is a book that you can pick up and read for five minutes between calls or read from cover to cover in a few hours. It’s a treasure trove of inspiration for every photographer out there who has lost a bid for whatever reason.

Think You’re a Good Listener?

29 01 , 2010 1 Comment

Somewhere I read this information and it has stuck with me through the years. I always think about it when someone calls about a photography job, but it applies to any sort of sales negotiation. Specifically, it’s the three pitfalls of listening.

1. Prior experience (read: baggage) prevents us from hearing what we don’t want to hear.
Speaking only for myself, that’s very, very true. It happens most often when someone, in response to my question asking how the images I create will be used, says, “that’s not important, we need a buyout.” That dreaded word: buyout. Your blood pressure rises, you start to shake (well, almost!), your ears shut down and you’re immediately thinking about how to respond. Or how about this… a potential client calls and gives you a list of eight shots she needs, and then tells you, it will take “only a half-day.” Yikes, those emotional filters are kicking in!

2. Bad listeners only pay attention to what they themselves are saying.Instead of listening closely to your counterpart as she tells her story, you might be thinking about what you’re going to say next. Remember when your dad told you to count to ten before you spoke when someone made you mad? In negotiating the rule of thumb is to count to two before you speak. It gives you time to digest what your counterpart just said, and time to compose your response. It helps to s-l-o-w down the conversation so you can remain composed and at your best. You’re also less likely to get off the phone saying to yourself, “If only I had said…”

3. In a negotiation, you think listening is passive.
Nope, it’s just the opposite. Listening is indeed active behavior. Your task in any negotiation is to gather information. There’s an old saying in negotiating, “the person with the most information wins.” If you must speak, ask open-ended questions with the intention of getting still more information from your counterpart in the negotiation. Ask about the details of the job; try to determine what her expectations are of you and your team.

Above my desk I have a small sign that reads:
1. Listen well.
2. Don’t get emotional.
3. Count to two.
4. Listen well.

Good luck!

Pause Button? FedEx!

27 01 , 2010 1 Comment

When you’re knee deep in a negotiation with a client, things sometimes can go astray. That’s when perhaps your counterpart in the conversation is hammering you for a price concession, more licensing for less of a fee, etc. Next thing you know, you’re perspiring profusely and your talking faster and faster, starting to sound like Mickey Mouse, all because your emotions are taking over your normally clear thinking.

Have you been in this situation and, after you’ve hung up the phone, thought to yourself, “If only I had said [insert words you wished you said here].” A friend of mine gave me a great tip: get off the phone to gather your thoughts, cool off, and perhaps seek advice, by blaming an interruption on the FedEx delivery person.

It’s brilliant because almost everyone will give you a break for a FedEx delivery. Why? Because everyone knows the FedEx person won’t wait too long for you to answer the door and they understand that if something is coming to you via FedEx, it must be important. Say something like, “Oh, you know, my buzzer just rang and I’m expecting a FedEx delivery, may I call you right back?” Then, after you’ve recomposed yourself, call the person back, thank them for allowing you to “get your delivery” and proceed intelligently. It may sound silly, but I’ve used this “excuse” successfully twice.

So next time you’re losing control in a negotiating and need time to pull yourself together, remember, at least at that instant, the FedEx delivery person just might be your best friend. Good luck!

Snail Mail Thank You Cards

26 01 , 2010 4 Comments

mailboxBJDforblogIn your quest to differentiate yourself from your competition, regardless of which industry you’re in, don’t forget the US Mail.  Yep, the good old US Postal Service.  Of course you should be sending Thank You cards to your clients after each and every job, even if you’ve been working with them for many years.  But even more important, be sure to send a “Thank You” to those potential clients with whom you were unsuccessful in your negotiations to get the job.  That’s right, the jobs you lost!

Just jot a handwritten note inside the card. Something like, “Sorry we couldn’t work together this time, please keep me in mind for future projects and I’ll keep in touch.”  Then add the person to your email list so they’ll receive your periodic email campaigns. (You are using email as a marketing tool aren’t you?!) The card will make a super impression on the client you didn’t get, and perhaps a job more suited to your style, budget, etc. will come along in the future and you’ll get another opportunity to provide an estimate. Good luck!