Find Your Target Sale
Your target sale. We talked in the last segment about what you want to sell, which products you're gonna offer. Now, you have to go through, you have to fill in your chart for each one of those products in every size. You have to do your markup factor. You have to decide if you can bump it up or if you're gonna have to bump it down, if it's going to be competitive or demand-based pricing. And then, you're gonna decide how much profit you're gonna make on each product, okay? You guys with me so far? Once you do those things, then you have to pave your way to your target sale. You know roughly, based on the hours, what you have to bring in. Now, what do you have to sell to get there? If you just walk in and expect to sell $800 worth of stuff, but you don't even have $800 worth of stuff on your price list, that's a problem, right? So you need to have an easy path on your price list to drive your clients right where you want them to go, at that $800 level or whatever level that is for you ...
and your business. So, that's the how will you get there. So we've got the price calculator. Now, let's talk about the package calculator. If you are nervous about sales, a package can be your saving grace, okay? A package is the value meal of photography. (audience laughs) Okay, it's something that consumers are used to buying that way. It sometimes is free gift with purchase or however they package it and put it together. This is a way to drive your clients right where you want them to go. So this is how you play around with different packages to decide what you want to offer. You can have a package with a 16 by 20 and five 8 by 10s. Sound like something your clients would probably want? Maybe so. So if it takes eight hours to create that package, roughly, and you know that it costs $45, $50, so $45 for the 16 by 20, $50 for the 8 by 10, because we know they're $10 each, then that means this whole package costs you $95 to make. Okay? Then, you multiply it by three or five or whatever your markup factor is that you've chosen. This is the difference between the two. So that means you have to have a minimum price of $285, right here, by three. Minimum price of $300 for that package. $475 would be a better price for that package, okay? And maybe you think you can bump it up even more. Add another $100 to it and see what happens. If you were to have a package of $600, and you had a session fee, let's say, of $100, and then you sold the digital files from that package for another $100, voila, we have an $800 sale, okay? So you build your packages to get your client where you want them to go. So maybe you are starting out your business and you're giving away session fees for free so that you can get clients in the door and let them try out your services. All of a sudden, you're at a $700 target sale, because you don't have that $100 session fee, right? So what's another way that you can get there? Let's look at this. So maybe you want your client to have a beautiful custom frame, and so you find a place that will give you a great deal on custom framing nearby. Same amount of time. It costs you $160. And then, when you mark up here, you know you have a product somewhere between $800 and $1,300. This is where you need to charge it. But if you think about custom framing, does that add value to what you're doing? All of a sudden, you've got service, and your clients don't have to deal with custom framing, right? They can come to you and get it all, so it takes one step out. Custom service makes it more valuable. Could you charge somewhere between these two if you made their lives easier by framing it for them? Maybe, maybe not. Maybe it works for your business. Maybe it doesn't, but it's another way to look at these things, okay? So then, you have your minimum price. You can finagle this number up, down. And so then, you write down your profit. So now, you have a way to think about driving your clients to your target sale. You could do it through packages. You could do it through add-ons. So maybe your client really wants that 16 by 20, and they want holiday cards, because that's why they came to you in the first place. So how much would the holiday cards add on to your sale? Maybe they can only get holiday cards if they purchase a wall art collection. Maybe it's only available as a bonus or something like that. There's all different kinds of ways that you can strategize to drive your client right where you want them to go. So here are a couple of things to think about for your products and your prices. Packages are for people that are looking for a deal. Okay, your value shoppers. Which is good. You can use a package to bump them up from an even smaller purchase. Instead of buying one 8 by 10, they might find value in your package and bump up to a $700 order. Your high-end buyer isn't motivated by that. Your high-end buyer is going to buy whatever they want, and they want custom, and they want good service. So you might have a whole different product offering by selling a la carte, for example. So we have two different ways that we work with clients depending on the clients. They can, of course, choose anything on our menu, but this is what I've observed our different buyers preferring. Our people that are really struggling to invest with us almost always get a package. It includes a framed piece and five 8 by 10s. Custom framed, regular print. It's mounted, it's laminated, it's beautiful. Our high end buyers opt for our wall art groups, so instead of buying one single large piece, they're buying a group of large pieces that hang together as a focal piece in the room for decor. Okay, and the way that that works is I get a tape measure. I measure their wall. I draft a custom product for them. I usually walk in knowing all of this, and I say, "Would you like this image here, "this image here, this image here?" And then, I add up the total number of pieces based on their size, and that's all a la carte. That's how our high end buyers prefer to buy, okay? Our buyers that have to have everything and can't say no to anything, that they love every single image that Peter captured, even if it's just a turn of the head this way to this way, those people love our albums. They've gotta have them, because they can't get rid of any images, okay? So you have to think of the different kinds of buyers that you have coming into your studio and give them an outlet to buy the way that they want to buy and still make the profit that you need to make for your business.