Professional Pricing Strategy for Photo Gifts

Personalized gifts have been around for some time however they are beginning to become a popular item as consumers experience such sites as Shutterfly and Snapfish.

I often remind many photographers that these sites are priced for consumer photos that reflect “everyday moments” rather than professional images taken by visual artist. These pro images typically capture “life events” and have a very different value curve than consumer photos. Therefore the content should reflect the value to the consumer rather than the object on which the image is produced. Simply said, a t-shirt that contains a professional photo should be priced higher on your storefront than a photo t-shirt that is purchased from Shutterfly.

Why? Because you are a professional and your time and effort should be rewarded consistent with the value enjoyed by your customer. Traditionally, this value has been reflected in the cost of a print. Many pro photographers include sitting fees and other related costs into the margin included in the retail price of a print. You control the content therefore you control its use whether that is on a print or an increasingly popular
personalized gift product like a puzzle or deck of playing cards.

Determining the price
Pricing pro personalized gift items is not that tricky, but many pro photographers may undervalue these items if a consistent strategy is not followed. I have developed a strategy that will help ensure that pro photographers profit from their pro gift products and also provide for the flexibility to adjust according to value and content. The simple equation goes something like this:

fulfillment cost of product *
+ 40% mark-up **
+ retail price of the closest print size represented on the finished product ***
= your photo gift retail price

* Fulfillment cost is the cost charged by your lab to produce the product.
Do not include shipping as part of the equation as this will be
added on top of your price at check-out.

** 40% mark-up represents a standard retail mark-up consistent
with other photo related items such as frames and albums

*** Retail price of the closest print size represented
on the finished product represents your typical price of a
print charged to your customer

Let’s give it a try
For simplicity, I have used the PhotoReflect Lab price to represent your fulfillment cost of the item.

Stainless steel travel mug as an example:
Lab cost: ($13.93) + 40% mark-up: ($5.57) + retail price for a 4x5 photo ($8.00) = $27.50
That compares to similar travel mug on consumer sites priced at around $18.

Photo puzzle as an example:
Lab cost: ($22.33) + 40% mark-up: ($8.93) + retail price for a 5x7 photo ($12.00) = $43.26
That compares to similar puzzle items on consumer sites priced at around $22.

T-shirt as an example:
Lab cost: ($16.19) + 40% mark-up: ($6.48) + retail price for a 8x10 photo ($25.00) = $47.67
That compares to similar t-shirt items on consumer sites priced at around $25.

It is recommended that you round up or down the photo gift retail pricing to reflect more of a traditional pricing strategy of $XX.99, $XX.95 or a simple even amount.

This strategy gives you the flexibility to adjust the mark-up and retail print price to reflect your business. Certainly, we suggest that you employ a mark-up strategy that helps cover all of the costs associated with selling a product and provides for an adequate margin to run a successful photo business. In addition, the retail value of a print differs widely among the type of photography. A 5x7 print sold by a sports and event photographer will be different than the price of a 5x7 print sold by a portrait photographer. Plug in your prices by using this simple strategy and see how it works for you. It is not designed to be a mathematical algorithm but simply a guideline to help your price and profit from professional photo gifts, making them a growth opportunity for your business.

Let me know how this strategy works for you.