Pricing Methods

Why You Need to Charge MORE

“Wait… I made $4,250 in sales this month but I only have $500 left! What the heck?!? Where did it go?”

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Why you need to charge more as a photographer

⁣Do you know where a sale goes?!? And if you don’t, how the heck can you price yourself without knowing this vital information?!? Because I cannot tell you how many photographers end up at the end of the month saying, “Wait… I made $4,250 in sales this month but I only have $500 left! What the heck?!? Where did it go?” ⁣⁣

Let’s break it down…⁣⁣

⁣⁣+ Let’s say that you make a $3,000 sale at your client’s ordering session. Woo hoo! Congrats! Feel all the amazing things and be proud! Now it’s time to do some math that is so so so important to understanding where your money goes. Don’t stay in the dark on this! ⁣⁣
+ Your sale was $3,000 but your profit margin is only 60%. Meaning that your cost of products cost you $1,200. This leaves you with $1,800 from that sale.⁣⁣
+ Now remember… that is NOT all yours. Let’s say your sales tax totaled $200 (depending on your state and local sales tax). ⁣⁣
Profit total is now: $1,600⁣ ⁣

+ Still not all yours yet… at this point, you’re missing a HUGE amount of money that is going to come out of this. And if you don’t put it aside, it could mean serious issues for you later.⁣⁣

Here it come, hustlers… INCOME TAX.

Most photographers do not account for this when considering pricing themselves and THAT IS SCARY!!! Income Tax MUST come out of that sale. The average US household files a 12% tax bracket and that will come out of your FULL net income. If you don’t know what your tax bracket is, PLEASE find out, and start pulling that out of your net income every single month and reserve it so that you can pay your taxes when it’s time.⁣⁣
+ Estimated income tax from this sale: $190ish (vomit all over the floor)⁣⁣
+ Your FINAL profit from the $3,000 sale is approximately $1,400.⁣⁣
THIS RIGHT HERE is why most photographers FAIL in business. If you need to make $3,000 a month to contribute to your family’s expenses, this is not going to cut it! 🙅🏼‍♀️ You will go into debt! ⁣⁣
Did you know that your sales are getting slashed like this!?⁣

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