With the growth of the photography business, an increasing number of photographers are beginning to sell photography prints and products in addition to digital photos. Pricing for photography is challenging if you’re just getting started. While you don’t want to be priced out of the market, you also don’t want to charge so low that you can’t sustain your business. This blog will help you calculate the cost of goods sold, while this next article will help you figure out how to set your price appropriately.
How can you determine if your photography business is profitable? To get the solution to this question, you must first estimate your costs. Cost elements such as the quality and size of the photography prints and products, the effort and time you put in, will all have an impact on your pricing. Here is a concept called COGS (Cost of Goods Sold), which is one of the aspects that influence your pricing. So it’s crucial to understand it in your business. For professional photographers, COGS includes all costs for shooting and services.
Above all, if you join Zno’s Pro Plan and provide photography and print products to your clients, your COGS will be Product Cost of $105 + Labor Cost of $240 + Overhead Cost of $24 + Shipping Cost of $15 (including drop shipping service) = $384.
Product Costs
The cost of photography prints and products depends on the pricing sheets of each print lab. For instance, if you want to print a customized photo album for your clients using the photos you took. After a series of processes such as selecting the photo album size, cover material, embellishment technology, paper thickness, linings, edges and so on. Your product cost is the final price of the photo album.
Seeking collaboration with labs that provide premium goods at reasonable prices is crucial for increasing earnings. Zno, a professional print lab, can provide high-quality print products at very competitive prices. It can lower your product cost and make your photography business more profitable. The members of Zno Pro Plan can get a 25% – 35% off Sitewide. It means if you customize a Flush Mount Album with a Crystal Cover in an 8×8” size, Lustre Print, Standard Page thickness, Genuine Leather Back Cover, 16 pages (8 spreads) from Zno, you can save at least 25% off the $140 price, which is $35. The price of the album, or in other words, your product cost will reach $140 – $35 = $105.
Labor Cost
Consider your ideal salary for this year is $50,000, and divide that by the number of weeks you plan to work (52 weeks). And the number of hours you work per week (40 hours). Here is your labor cost equation: $50,000 ÷ 52 ÷ 40 = $24 per hour of labor.
Now you need to determine how much time you will spend during your shoot. Suppose it takes you 5 hours to take photos for your clients, 2 hours to retouch them, 2 hours to design the photos into print products, and 1 hour to discuss the details with your clients. Ultimately the total time you spend on this shoot is 10 hours. Then your labor cost will reach $24 x 10 = $240.
Overhead Costs
Typically, overhead cost consists of the cost of photographic equipment and its insurance, photo retouch tools, software subscriptions, and advertising. Based on your working hours, if your annual overhead cost is $5,000, the hourly overhead cost is $5,000 ÷ 52 ÷ 40 = $2.4 per hour. Therefore, the overhead cost for this shooting will reach $2.4 × 10 hours = $24.
Shipping Costs
You will incur a shipping cost (assuming it is $10) when your clients order any print products. You can benefit from the drop shipping service for only $5 if you are a member of the Zno Pro Plan. All orders will be shipped directly to your clients; you won’t even have to get in touch with the courier service yourself. Zno will ensure to not include any marketing materials and use a non-branded packaging box.
To sum up, if you join Zno’s Pro Plan and provide photography and print products to your clients, your COGS will be Product Cost of $105 + Labor Cost of $240 + Overhead Cost of $24 + Shipping Cost of $15 (including drop shipping service) = $384. This formula is a rough estimate, the precise costs will differ depending on the type of your photography, your photography experience, and several other variables. To make your photography business more profitable, sign up for a free account and join Zno Pro Plan now!
About Zno
Zno is your One-Stop-Shop Print Lab and All-In-One software platform for professional photographers. With premium quality print products and innovative selections, impress your clients with professional printing on high-quality materials. Maximize your profits with maximum customization options and streamline your workflow with our cloud-based editing and easy ordering system. Say goodbye to complexity and hello to simplicity with Zno. Join us today and take your photography business to new heights！
