Category Archives: For photographers

The business series- Customer relations ( Sunshine Coast wedding photographer – Robeccer McLean)

How did you all go with working out your break even amount?

Feel free to ask questions if your not sure on certain aspects of what I have spoken about, also if there is any thing particular that you would like me to run through for future posts :)

Today I had my husband Anthony write the blog post. My husband teaches the principals of persuasion to many large corporations in Australia. He is the only person trained in Australia  to be able to deliver  Dr Cialdini’s principles and runs worksops and seminars all over the country to assist people in all types of businesses, from real estate agents, IBM, microsoft you name it. You can find his website here if you after some more information.  Dr Cialdini is coming out to Australia and running a free workshop which you can find out more information on the site above. I asked him to write a short blog post to assist people in our industry with their customers.

You have probably heard it said “It’s easier to keep a client than to find a new one”.  It’s a timeless business saying because it’s true.  It recognises the importance of maintaining a relationship yet to get someone to be an ongoing client you have to win them first.

This is the first in a three part series dealing with relationships, uncertainty and moving clients to act.  The three parts will rely on the science of Social Influence rather than anecdotal stories of sales success.

In the field of social influence we know that it is what you do first that matters most.  If you want to build a relationship with a prospective client, maintain a relationship or repair a relationship you need to make the first move.  Think about the last time you encountered a stranger – if you waited for them to smile you may be still waiting but if you smiled first, what happens?  They smile back, but it is the effort you make first that triggers the response.

When building relationships there are two principles that help us more than any other; Reciprocity and Liking.

The principle of Reciprocity says “people feel obliged to give to those who give to them first”.  Many believe this involves tangible gifts and that is where they fail.  Think about the things you want from your clients.  If you desire an open engaging relationship then you must offer this first; if you want your clients to listen to you then you must listen first.  The key here is like begets like.  Therefore if you give someone attitude you’ll get attitude in return, if your not open and welcoming from the first contact with a client how can you expect them to be open and trust your artist instincts.  Secondly when pitching your products always start with your best and most relevant package for your client but always have a fallback position, this allows you to make a concession and if you give ground your prospective client will then be more inclined to give ground as well.  It’s the small things that make the difference.

The principle of Liking says “people prefer to say yes to those they know and like”.  At its most basic level we like people who are like us so in your initial meeting don’t just go through the motions, find out what makes your clients tick.  Try and uncover their values, attitudes and beliefs and remember this meeting is not about you, it’s about the client so let them talk and really listen.  This process of discovery will allow you to come back and highlight the common interests or shared goals you have.  Even at the most fundamental level we are all people so you can start there but if they are sitting with you then they are already interested in you and your photos.  I would hazard a guess no-one goes to a professional photographer to get rubbish photos, so you are already connected at the artistic, beautiful, story based world of images, so discover what they want and show them how you can help them get it rather than just sell you most profitable package – this is where keeping the client comes in and allows for later sales.  To promote liking in your relationship, if you encounter something you like about your client, tell them.  We like those who like us, so deliver praise where possible.  Genuine praise will work wonders but don’t go overboard.  Finally if you come across people you just can’t connect with find one thing you like about them and tell them.  For some turning up on time maybe as good as it gets so thank them for their effort – you need to start somewhere.

Next time we’ll talk about overcoming uncertainty and objections to you and your products.

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The Business Series – Working out your break even ( Sunshine Coast photographer – Robeccer McLean)

How did everyone go last week with their timings? Make sure you keep them written down, what you wrote out, as this is the start of you writing your systems for your business.

Every business needs systems to fuction properly and to create a consistant and postive image to your business. If you allow staff as you get them to create their own systems this will give your business an identity that you may not want or need. Sometimes it’s hard to think about that sort of thing when you start out, but this is the most important time to do it. If your prepared along the way, your allowing your business to grow in a more postive and natrual way . If you don’t have them and all of a sudden your business gets overwhelming to deal with,  you make decisions on the fly ,which may have a negative impact.

It’s never to early to think about where you’re headed and your end goals, without goals for you business you can’t put the steps in place to get there. Where are you headed, how many staff would you like? What would a week look like when you have gotten there? What would your life look like? May sound airy fairy but it isn’t, this is extremely important to a business to give it a postive direction.

Remember a business is like a tree, if it isn’t growing, it is dyeing. Taken from Brad Sugars book ” The Business Coach”

While I’m on the subject of books, every person starting out in business should read the book. The E myth revisted by Michael E Gerber.This book talks about why businesses don’t work and how we go about changeing that.

Every business owner needs to wear 3 hats, The Technician which us photographers have no problem with… this is actually carrying out the work of our business. The Entrepreneur – this is the part of us that grows the business and thinks up the fabulous ideas to make things happen. And last The Manager – this is what most people in our line of business have trouble with and it’s the part we all need to learn the most. It’s running the business, working on the business, creating systems, managing staff. I am a victim of this side…I love the entrepreneur in me, I love thinking up new ideas and watching my business plans grow. This is really my 3rd business, I love starting up new businesses and find it terribly exciting but I need the manager to come out and control and direct these wild ideas I have, otherwise I just spend and spend to grow and grow without systems and planing.

After selling my first business I realised the importance of having systems and a business manuel. I started this business with my sister in our lounge room which is the story of most SAHM’s. We grew it so big so quickly that we didn’t have the time, energy or resources to keep running it. We needed a commercial property to house all out wares as they were taking over both of our houses. We were also doing this with at the time 5 little kids running around ( I had 2 under 2 and my sister had 3 under 4).. surely a recipe for disaster. I had my third child due any day and that was when we decided to sell, it was getting too much, we were working 7 days a week, 16 hours a day whilst running our families, something had to give.

I knew we would not be able to sell the business unless we had a turn key operation and so that is when my Husband and I ( He writes manuels for his business) sat down and had to get everything out of our heads onto paper.

What a task!! But we did it and we made really good money out of the sale. This I put into my photography and interior design business which is now just photography ( and that I love more than anything, oh except my family ;) ). I quickly learn’t the importance of growing organically and also having those systems in place so when it does get busy I can hire staff and they know their place and job from day one . This I developed further and learn’t more through having a coach as I knew I had to do it.

Anyway thats my story of what forced me into action.

Today we are chatting about working on your break even amount. So many people just float through their business with no idea how much their business costs to run and how many sales they need to make in order for it to run.

Again it’s so easy to work out.

I re-did mine again the other night which I think you need to do every year. My business has gone through massive growth the last 2 years and so has my expenditure so it was time to re- evaluate what my business costs to run.

I’m not the best with excel, so i had my hubby finally sit down and teach me it  and boy how embarrassing… it was so easy!!

I printed out my P&L for this year to date( profit and loss) out of MYOB so it was easy to see what I spend money on etc.

Write a column in excell of all your costs eg:

car cost

printing

albums

wages

commecial ( if you have one)

office supplies

public liability insurance

equipment insurance

memberships ( AIPP etc)

Award expenses

Personal development ( seminars etc)

Bookeeping

DVD’s

packaging

ribbon

Grapic design

commercial printing

Camera equipment

office equipment

Web hosting

Framing

petrol

bank fees

telephone

This is just an example of some costs that most photography studios have, your’s will probably be different. Now in the next column write how much per year these things cost you. It’s always better to be exact or to over estimate as people tend to think they spend less than they actually do. Add that all up in a total column at the end. Now you can divide that into 12 months and even weeks..This is how much you have to make a week to break even.

On the next page on your spreadsheet you can put your package costs. I itemise it so I can see eg: time, album, prints, etc in a colum with how much each package costs me. I put down how much I charge for the package under the total and than can work out my profit margin on each package.

package 1 ( a plucked an example use what ever you charge)

time 35 hours ( as per last blog post) @ $ 50 = 1750

album 20 sides $800 ( example)

DVD  etc etc

total = $2650

price I charge the customer $2,200

Total profit = -$450 ( woops I am loosing money on this package time to revise)

The good thing about having this in a spreadsheet is that you can go in and change it when ever things change and the tally’s will change accordingly. It is also always there if you need to go to the bank to borrow.

Once you have this on paper it’s now time to play around with goals… Ok so I know I need to make this a month to break even, lets say $15,000 for a just a number.  I can now predict how many of each package I have to do a year to make a profit. This gives me control as well over my year and allows me to not to just book things in willy nilly.

As an example ( totally fiction just plucking numbers out of the air) : I would like my business next year to have a turn over of $200,000 a year…what does this look like in terms of sales? How many customers do I need to book to achieve this? can I do this on my own or will I need staff to help me achieve this? you can see how this enables you to have more freedom and not let it just sneak up on you. How much will my costs be ?

Ok so i will need an admin person for 15 hours a week to guarantee my customers are answered promptly, bookkeeping up to date, orders dispatched etc as I will be busy shooting. I will also need another part-time photographer to help. If you want to remain boutique and only have you shooting, than you may need to up your prices so you can handle the workload and only do say 35 weddings a year and than hire an admin person full-time  and maybe someone to help with raw processing. Totally up to you.

This is the good thing about knowing your facts and figures, it gives you freedom to plan ahead.  So you can see where your heading, to play around with numbers so you can shoot what you can handle and really look after each customer the way you would like to. There is no use being super busy doing loads of weddings and spending 16 hours a day behind the computer, if your letting your customers down in the process, because you can’t do it all.

Think ahead, know your numbers and work how you would like to work and how you dream of working. We spend so much time on seminars learning our skill yet we don’t spend the time on our business. Crazy hey!

Here is an example of my pie chart, my fabulous Hubby showed me how to do this the other night this is easy to do once you have your costs into excel. This shows me what I spend most of my money on and the least.. how I can reduce it or where I need to do better. This is actually a prediction for me for 2 years time…as I said I love planing my future!

This took me about 1.5 hours the other night to do, so don’t say you don’t have time!!

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The business series

I have been getting so many emails lately asking how I do things that I thought I would start a business series to help answer these questions. I consider myself just a newbie only being in business for 4 years but have worked my bum off over the last 2 years since going to August exposure for the first time.

If I can help one person make it than I have done my job…my motto is too pay it forward, there have been many people who have helped me along the way and this is my way of giving back to our photography community.

It’s a really scary thought when the statistics say that for evey small business that starts today 80% won’t be here within 5 years. We are in the industry of selling relationships and we are letting ouselves and our customers down by not doing things correctly so we can be there for them through their future and make a living for our family. Why do you run your business if it’s not to earn a wage/ make a profit?

Pricing

This is one of the scariest things for people starting out, they throw a price on their packages and think ok that sounds resonable, after 2 years the price is the same and  at tax time your accountant says…you’ve made a loss of $20,000.

This is what happened to me. I could either go on and become one of those statistics or change the way I do things, so I have a business that is run properly and that actually makes a profit.

I enlisted the help of a business coach, it was confronting to say the least. I worked out that I was lucky to have been chargeing myself out at $5 an hour. It worked out better for me to go and get a job at a supermarket than run my own business. I see so many making this same mistake, and the many workshops I have done they talk about it. But how do we change it ?

- So how do we work out of prices, well its so easy but takes a few hours out of your schedule.

- First of all, write down the steps of exactly what happens from the moment a customer emails you to the time that they pick up there products at the end.

- Don’t cut corners here the more detail the better.. every appoinment, email, telephone call, editing time, blog posting, album deisgn, resizing images, sendng images off  too the printer  everything!

-Write it as steps.

-Now put a time next to it. eg; it takes me 1 hour for our initial appointment, 5 minutes to send them an email confirming there booking, 15 minutes to put together their  welcome package, postage etc.

- Keep going till you have every step down with an exact time next to it, even if you have to put a timer next to you when you do things. Sounds crazy but time is money and in  every other industry they value their time and put a price on it.  Look at lawyers for instance!

Ok are you done? surprised? I know I was surprised, holy hell I said to my coach no wonder I never have time to do anything lol!

2nd step.

How much are your products or cost of goods?

Every piece of paper sent, packaging, ribbon, proof albums, telephone calls, disk’s and disk covers, album costs, price-list sent, how much did they cost you to print and design and page costs don’t forget frieght on your suppliers sendng you stuff.

Now how much are you worth an hour? honestly? times that by the time you spend with your cusomters and than add up you cost of goods and put them all together?

For instance $50 an hour which a very resonable/ low price for a pro x by 35 hours = $1750 + cost of goods $850 (just an example) $2600. This should be your base price and what you have to work on. This dosen’t include the general workings of your business like insurance, internet, commercial space, albums , staff etc… are you freaking out now? how much do you charge now as a base?

I have had so many people say to me that i should drop my price when I move the the SC as it is a different market. If I drop my prices I will be working at a loss and I want to be running my business still in 10 years time and constantly growing. Some people put this pressure on others because they don’t value there time and work, blunt but so true!

Canberra has so many wonderful photographers who are running amazing businesses, remember if you are at the top and not increasing your prices there is nowhere for the people just starting out to go. We have to stop thinking of ourselves as a unit but as a community. Next series we will work out our break even amount, this is how much we have to make a month to break even.

Are you to scared of putting value on yourself and your work?

Remember our customers value us when we value ourselves!! Don’t be a statistic!!

And a photo to remind me why I run my business…. Family!

Photo by Jinky Art who runs an amazing business and who we value because she puts value on her work!

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