TIPS60 - The business-critical matter of prices being based upon your costs

Here is another of our videos offering tips and inisights into the business of photography. a transcript of the video is included after the jump.

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TRANSCRIPT:Here are a few thoughts on how you might set your prices as a photographer. It's complex, but it's simple. The simple side of the equation is what you set your prices at have got to be more than what it costs you to be in business. I know that sounds like a simple concept, but most people don't understand what it costs to be in business. If you do not know what your cost of doing business is, you need to sit down at the NPPA's calculator on their website. Check out the URL below. Go to the NPPA business calculator and calculate your cost of doing business. Once you've done that, you know what you need to charge at the very minimum in order to stay in business. After that pricing gets to be a little bit more complicated, but understand that prices have to be more than costs. It's really a simple concept that most people don't focus on when they're starting out they just think, ""Oh it's a few hundred dollars, that'll be fine."" Not when it costs you twice that to be in business.

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