What Should I Charge For A Shoot?
February 9th, 2010
“What should I charge?”, is probably the most asked question by beginning real estate photographers.
The answer to the what to charge question has two parts:
- How much on the average does it cost you to show-up to any property in your territory?
- How much should you charge as an hourly rate?
How much to show-up? Anyone in the business of driving around to properties in these days of rising transportation costs needs to be keeping track of vehicle costs and reviewing them frequently. Figure more than just fuel costs. You need to include auto insurance and vehicle replacement costs. Here is a great site to help you calculate vehicle costs.
What is your hourly rate? This is a tougher question. But you know what hourly rate you’ve been paid in other jobs. The difference when you are working for yourself is you need to figure out what accountants call a “burdened” rate. That is, a rate that includes paying for marketing, health insurance, camera equipment, retirement and all the other costs of making this a long term sustainable job.
What’s the competition charging? It goes without saying that knowing what the competition is doing is always an important part of the what to charge question. Take care when doing this. You have to also compare the competition’s services. Studying the competition’s prices and offerings needs to be a regular exercise.
The PFRE what do you charge poll: The “what do you charge poll” on the Polls page (third from the bottom) shows the results of poll data I’ve been collecting for some time on what real estate photographers say they charge. This is a 100,000 foot level view of prices because the people voting are from 110 different countries, 67% US, 7% CA, 6% AU etc. All presumably converted to USD before they voted, this only gives a general feel of what the range of prices are. It’s more important to make sure you are recovering your expenses and making a fair wage. As much as anything this poll gives a feeling for the distribution of prices that agents are willing to pay.
The big city effect: Since I spend time in Seattle, WA and Salem, OR I’ve become keenly aware of the difference of what services cost between Seattle and Salem. Everything in Seattle cost twice as much as it does in Salem. This location factor effects what real estate photographers can charge as well. In big metropolitan areas real estate photographers need to charge more because it’s more expensive to operate whereas in sleepy rural areas where the cost of living is less. In general, you’ll need to charge less in small rural towns.
The effect of marketing: I think the effectiveness of your marketing is an important factor that is frequently over looked because photographers like to photograph better than they like to market. If you do effective marketing and keep your name in front of your potential customers and if successful agents use your services, you’ll get more business at a given price than if you just sit back and wait for the phone to ring.
8 Responses to “What Should I Charge For A Shoot?”
Farmington MO Real Estate February 10th, 2010 at 7:35 am #
There is one item left out “What is the value of your product to the consumer”.
For Example:
If you charge $150 and the the $150,000 home sells in 6 months instead of 12 months, is that a good return for the agent??? Here are the numbers: Consummisions on a $150,000 run about $9000 ($150,000 x .06). So the agent has a choice; pay $150 now and get $9000 in six months or wait 12 months and get the full $9000. The interest on $9000 for 6 months is about $450. This is the amount the agents loses by waiting the extra six months. The interest on $150 for 6 month is $7.50. This is amount of potential interest that the agent loses by paying you now. So the net gain for the agent for using your services is $450-$7.50 = $442.50.
Moorestown Homes and Real Estate Education February 10th, 2010 at 8:30 am #
This is a well put together list that any business oriented photographer especially a new one should find valuable. I think your last point is most valuable.
Anonymous February 10th, 2010 at 10:52 am #
“Consummisions on a $150,000 run about $9000 ($150,000 x .06).”
No agent I know makes 6% on a listing. They gross 3% and then have to pay their brokerage and expenses ect. You want to piss off an agent real quick? Start talking about how they’re going to make $60k on a million dollar listing.
larry February 10th, 2010 at 11:30 am #
Yes, Anonymous is correct… even in the best of situations the listing agent is only going to make 3% (the other 3% typically goes to the agent representing they buyer) and it’s not realistic to assume anything in todays environment about what the listing agents are making. Commissions are negotiable. On bank owned properties, “short sales” or foreclosures the agent may not make a dime. Banks will work agents out of commissions to make deals go together if given a chance.
The other reality that everyone needs to understand is that price is THE overriding factor. When a home is priced too high the best photos available can’t make it sell. And in todays market, where home sellers are still in denial about what their home is worth, it takes a VERY good listing agent to get the seller to price their home at market value.
Erik Grammer February 10th, 2010 at 6:53 pm #
Larry – absolutely true on commission structure and home price.
Seems these days that homeowners who planned on a huge windfall when selling are struggling with all that missed equity. I always cringe when I’m on a shoot and the homeowner pulls me aside to ask if I, the photographer, think the home is priced properly. (This is like asking your grocer if maybe you should have that rash looked at, no?) This has become so common that I encourage my agents to leave me in the house, alone with the homeowner, during the shoot. That way I can casually comment on how great their agent is at properly pricing homes in this market… how effective their marketing techniques are, how experienced they are in this area, etc., all in the course of casual conversation during the shoot. I consider this to be part of the service I provide and I know it has had a positive effect.
On a side note, alone with the homeowner is also great time for the photographer to mention things the owners might want to tidy up prior to the first open house. Homeowners tend to trust the eye of a photographer more than an agent when it comes to what looks good and it also keeps the agent from sounding like a heavy…
Farmington MO Real Estate February 10th, 2010 at 8:47 pm #
Anonymous, Larry, – The point I was trying to make is that you cannot price the services above the value provided to the agent. The numbers used in the example are not important. What is important is not charging more than the value providd by the service. Each area is going to have it own set of commission rates, home prices and broker fees.
larry February 10th, 2010 at 8:55 pm #
@Neil- OK. I see what you are saying. Excellent analysis and point. Thanks for taking another run at explaining.
annon February 11th, 2010 at 3:57 am #
A good photographer knows his market.
its no good being a great photographer if you dont have the contacts.
Invest in yourself with time and build a relationship.No sure about Seattle but some of the so called sleepy areas can pay well.
These days there are some pretty average photographers out there trying to get into the market, they can damage the pricing, but hopefully the agents are all educated on Photography and can spot and stay with the good photographers.