Trading Down

The Nightly Business Report talked tonight about a consumer phenomenon they termed 'Trading Down.'

Basically it means consumers are opting for less expensive items. For instance, they interviewed a liquor store owner who said that expensive wines were not selling, but wines that were on sale were flying off the shelves.

The idea here is that consumers are deciding not to forgo a product or service because of the economic downturn. Instead, they are deciding to buy cheaper.

What does that mean for wedding photographers?

I think it means that prices for hi-end weddings (think 20k+) won't hold up. The consumer is deciding to replace the hi-end wedding photographer with an equal, but less expensive option.

That's not to say hi-end weddings aren't in abundance, just that competition for those jobs has increased and some folks shooting for that market will need to either re-adjust their price point or lose work.

This economic environment offers an incredible opportunity for photographers who have a lower price point and don't mind the higher volume.

Those who are positioned well will be able to add market share and grow. Perhaps even double-digit growth!

If wine is still flying off the shelves, then good photography at a great price will be too. — Sean

Wedding photography's dirty little secret

Psssst... I'll let you in on a secret.

A lot of good wedding photographers aren't focused on photographing weddings or even finding couples to photograph.

Look for instance at the wording of this offer for advertising space on a wedding photographer's blog:

...want to get your service, widget, or product in front of over 7000+ photographers daily?

Why isn't the audience 7000+ brides and grooms?

Who's your audience and what are you selling?

If I were to advertise on your blog would it be to advertise to other photographers or to couples who need a wedding photographer? — Sean

Note to young photographers: Strip it down

Saw this on Strobist. Timothy Greenfield-Sanders has a wonderful approach to photography. He strips the photograph to its barest essentials. If there's one thing wrong with young photographers today, they don't spend enough time stripping pictures down to the bone. I wish I had learned to appreciate this earlier in my career. Documents always carry more weight than a photographer's preconceived notions about what a good picture really is.

I'm reminded of one of my favorite passages from 'On Writing Well' by William Zinsser:

"The point is that you have to strip down your writing before you can build it back up. You must know what the essential tools are and what job they were designed to do. If I may labor the metaphor of carpentry, it is first necessary to be able to saw wood neatly and to drive nails. Later you can bevel the edges or add elegant finials, if that is your taste. But you can never forget that you are practicing a craft that is based on certain principles. If the nails are weak, your house will collapse. If your verbs are weak and your syntax is rickety, your sentences will fall apart." — William Zinsser

Who ever said photography and writing aren't related? — Sean

From the Job Dept.

Just catching up on a bit of reading online and this post at PDN caught my attention. Here's an excerpt:

"Do I still want to be a photographer? I’d like to do some more shooting. But I’m at a place right now where it’s not my number one priority as it was when I was a student. You could say I’ve shelved it for now."

Click here to read the entire piece. The PDN title includes the words Career Opportunities. That's what it really is.

I can say confidently that the industry (PDN prefers the term industry over profession) needs people... badly. PDN sounds like one of THOSE high school counselors... or maybe the guy in the graduate?

Mr. McGuire: I want to say one word to you. Just one word.
Benjamin: Yes, sir.
Mr. McGuire: Are you listening?
Benjamin: Yes, I am.
Mr. McGuire: Plastics.
Benjamin: Just how do you mean that, sir?

What about photography as a profession? No career opportunities needed, really. Only passionate people. — Sean

Five Six ways to be more profitable

Sorry for no posts. I've been away from a computer, e-mail and a blogger account for an incredibly enjoyable two weeks. If you haven't made an effort to stay away from a computer (that includes your iphone) I encourage you to try. It's wonderful.

OK, so I got to thinking about this post while I was away. Economic news is bad. That means that expendable income on things like weddings should be bad too.

Here's five six things you can do now to be more profitable and ensure your survival in what I expect to be a rocky road over the next few months.

1. Reduce your expenses (Added)

Don't buy equipment you don't need. It always surprises me to see photographers buying the latest and greatest equipment. But if you can still work with your Canon 10D and get the job done, you're ahead of the game. Camera companies want you to get the best, but the reality is you need to make purchases that will last long-term. If you must purchase something, stay just this side of prosumer. A $7,000 camera is a big money loser and you don't get paid any more for using it.

2. Limit your products

Product costs eat your margins for lunch. Reevaluate ways to save. Don't be afraid to limit your offerings to a customer base that may not mind limits. Proofing products is a great example. Do you really need them if you're goal is to upsell your couple on an album, thereby making them a better source of referrals?

3. Increase your markup

One of the best pieces of advice I've ever received. Make absolutely sure that your markups are marked up! I know a photographer who marks up albums %5 over whole sale price. I still don't know how he can pull that off. A general rule of thumb: Mark up every product your sell by a factor of five.

4. Evaluate your advertising

Magazine advertisements are one of the worst money losers. You gain nothing in return for a two-year $4k contract to advertise in a glossy magazine. There are much better ways get a return on your advertising. Think locally. The more specific the market niche the better.

5. Team-up

Photographers have been doing this for a long time. Partner with another photographer to attack a specific market, share in advertising expenses, even rebrand themselves under one roof. By teaming up you can take on more work and your cost of doing business is automatically reduced.

6. In-source

Crazy idea, I admit. But have you looked recently at the statement you received from your the web site or lab or album designer you've outsourced work too? My bet is your margin is significantly effected by outsourcing. Not only that, the quality of your products is also effected. Reconsider insourcing. It's not for everyone (like people who don't want to get dirty with the details). Bottomline, if you can install efficient systems for albums, print orders or both, you're going to make more.

Hope these ideas help! — Sean

The Knottie Drama - here we go again

I wrote about a contract put out by the Knot magazine that is damaging to photographers. Here, here and here.

The first time around, I submitted images to the editors before I received the contract. After seeing it I was so concerned I asked them to renegotiate the terms of use of the images I gave them. In the contract I essentially granted them all rights to the images and indemnified the magazine if a lawsuit came along!

Never heard back. Magazine went to press. Never had to sign anything.

It's the same cast of characters this time around. Rebecca Crumley e-mailed and selected a wedding from our blog. Carly Jackson e-mailed me a contract. And I asked to renegotiate the terms.

No answer. Just another request from Carly that goes like this:

Cayton Photography

I just wanted to touch base with you about Shannon + Peter’s images!
Please let me know as soon as you can if you would like to participate.

Thanks!
Carly

I cordially declined to participate and oh how glad I am that Conde Naste also contacted me again and will be running one of our weddings without any of this silliness. — Sean

Photography and literature

It always surprises me to read about photographers who poo-poo the idea of photographing weddings.

It seems to me that photography is a lot like literature. Some literature is less respected than others. A graphic novel is seen in a different light from a book of poetry, for instance.

Like literature, photography has many forms. Wedding photography is one. The form (or the story of wedding) remains the same.

Despite its lack of respect, it's comforting to know that no one will ever dispute the idea that to master any form of literature or photography it takes practice and hard work. — Sean