The American Society of Media Photographers provides this forum to encourage the development of critical skills and to foster new ideas. Our goal is an informed and savvy professional photography community.
[by Todd Joyce]
Talking about money is difficult for many of us. I admit, it brings about an uncomfortable feeling for me, too, but getting it out of the way up front is incredibly important. There are three stages of discussing a budget: upfront, during any changes and the summary.
At the first discussion of the project, I ask “what’s your budget?” Sometimes they say and other times not. If you get the answer and it’s low, what do you cut? Some people go right to the fee and make that decision if the job is worth it or not. I prefer to form a job cost list and discuss it with the client to find what they may be willing to live without or do to make their budget work.
For example, I might say, “So, to cut costs, what could you take care of to make it work?” not, “Are you willing to take care of something?” That way, it’s harder for them to say “No, we’d like for you to find what to cut.” How you say it makes a difference.
Make this a mutual issue, not your problem. Facilitate a state of combined responsibility. Partners work together to find a mutual ground to make things work. You may find that to do the job, you may need to cut your fee, but it should be your last choice, not your first.
Changes can happen along the way. During any changes, it’s very important that you address anything that effects the budget the minute it comes up. If they want a change that will increase the budget, bring it up so that they can decide if it’s worth the additional cost. I suggest using a change order form too. It’s a simple acknowledgment of the cost change and that they were informed and approved the changes. As photographers, we could learn a lot from mechanics. If they find something that will increase the cost, they often ask you to agree to the change before making any repairs so that there are no surprises.
The summary is a review of the final bill. I often will call my client to go over the invoice, prior to sending so that they are aware of the final costs. That’s when I tell them of any savings or go over the additional amounts they approved etc. Any pleasant surprises will make them happy. There should be no unpleasant surprises if you addressed everything along the way. This keeps them happy and asking you to come back for more work in the future.
Todd Joyce – Todd captures people to help his clients sell things. joycephotography.com
[by Jenna Close]
Dealing with budgets can be a tricky situation. I always find it odd when a client says they “don’t have a budget”, so I tend to look at this response as more of a tactic than the actual truth. In most cases, when someone is looking for a product or service, they have an idea of what they can afford to spend. The tricky part comes in getting them to talk to you about it.
When I first speak to a prospective client, I always ask up front what they would like to spend on the job. I phrase the question like this:
“What have they given you in terms of a budget?”
Notice that this is slightly different than saying “What do you expect to spend?” or “What’s your budget?”. I’m subtly taking the pressure off of whomever I’m speaking to. It’s not THEIR budget, it’s the budget THEY’VE BEEN GIVEN. Remember, part of their hesitation to divulge may come from fear of offending you. Or it may be because their boss told them not to answer that question directly on the first call. Likely it is also a negotiation tactic, but that may not be the entire story.
That said, asking bluntly results in a surprising number of direct answers. In this scenario, the information is valuable but not absolute. Just because they quote a price doesn’t mean you have to meet it or that you will lose the job if you don’t. Look at it as a starting point for discussion and modification of job parameters.
If the client responds with something like “Well, we don’t know what our budget is right now”, I don’t let them off the hook immediately. As I mentioned earlier, I generally don’t believe that people have absolutely no clue what they want to spend. In this case, a little humor can help. I respond to this kind of statement by presenting them with a ridiculously wide range. I might say, “Ok. Can you give me a range? Would it be closer to $2500 or $20,000?” They usually gasp and say “Oh no! Not $20,000! More like $3,000.” Sometimes they say, “Oh, probably somewhere in the middle”. Whatever the response, you can pick up clues to what they are really thinking not only by their answer, but by the tone of their voice. You may not get a succinct number, but you’ll have a better impression of where they are coming from.
Jenna Close has never experienced life with an unlimited budget. She suspects her clients haven’t, either. She can be found crunching numbers at www.p2photography.net.
[by Carolyn Potts]
While the marketing strategies share similarities, they’re not identical. When you create a photography marketing message to reach a decision maker in a B2B environment (a business-to-business target such as an ad agency or corporation) understand there are different buying behaviors than in a B2C market (a business-to-consumer e.g., weddings, portraits, etc.).
Similarity? Both sectors need to know why you’re better photo choice than your competition.
Difference? In a B2B market, the buying decision involves input from many people–often over many weeks… or many months. Multiple agendas from multiple stakeholders must be met (ad agency, client, shareholders, etc.)
In B2C, it’s usually only one or two people that drive the decision bus; most times there’s a far shorter and emotion-driven sales cycle (“I’ll use who my friend used”).
The strategy you use to reach a lone decision maker is a different strategy than the one needed to get approval from a team.
The more you understand the many differences between these two market segments, the more you can craft your marketing message accordingly. And the more effective your marketing efforts will be.
Carolyn Potts, creative consultant & former photo rep has edited thousands of portfolios and landed millions of dollars of assignments for photographers. Find her at www.cpotts.com on Facebook and Twitter @PhotoMktngCoach
By Carolyn Potts
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Posted: May 18th, 2012
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