Underpriced Competition Is Not Competition... At All
One of the most difficult things about being in business is pricing. Especially in the beginning.
Instead of pricing ourselves for profit, we tend to underprice ourselves because we don’t believe in our own worth. When we are figuring out our pricing, we often look at our competition and base our prices off of them.
One of the most common things I hear is “there are so many underpriced photographers in my area, there is no way I can charge enough to make a profit. When I raise my prices people don’t want to pay the higher price, they want to go to the lower priced photographer.” We think that the reason we aren’t getting clients at a higher price is because of the competition who is offering the same service at a lower price. But this is not the truth. I am one of the highest priced photographers in a very saturated area and I have no problem booking out a year in advance at my price. And I am sure the lower priced photographers are booking a ton of sessions too.
Here is the thing...
A person that is going to pay $150 for a photo shoot will never pay $800-1k for a photo shoot. And a person who will hire a photographer who charges $800-1K would never hire a photographer who charges $150 for a session. These are two completely different clients all together. They are not shopping for the same photographer at all. A person who will pay a higher price is not bargain shopping. They are looking for a high end product and experience. It’s just like the person who will pay 1K for a pair of shoes would probably never buy a $25 dollar pair of shoes. It’s just not the same person.
I have been in business for seven years and one thing I have learned is that there is enough business for everyone. The reason you aren’t booking clients at your higher price isn’t because of the lower priced competition. Instead of looking at your competition's prices and attributing your lack of business to their low prices, look at your business model and brand. Do you have a solid brand? Do you know who your ideal client is? If you do, will they pay your prices for your service or product? Is your product or service a high end product or service worth a high price? Do you have an effective and genuine marketing plan? Are you serving your clients well?
Listen, Lady Boss, you have to stop looking at your competition and instead take a good look at your own business because I promise, there is enough business for everyone.
P.S. Do you know a Lady Boss who could use some solid business advice? Feel free to share this post! Remember, sharing is caring!