August 2nd, 2015
Pierre in LA asked the following question:
I was wondering what you and others think about the idea of tiered pricing. I’ve seen other photographers offer their own service at a premium and have cheaper prices for staff photographers. My idea is a little different in that I am thinking of offering a premium-priced service for luxury homes and a more affordable service for everyday homes (which are my bread and butter) Similar to Coldwell Banker vs Coldwell Banker Previews or Toyota vs Lexus…
I think in the LA market where I work, the demand for a distinct premium offering is really there, but I feel there is a danger of not participating in that segment if my prices are too affordable.
The question becomes, how to brand each offering in a way that would justify the premium pricing for Luxury homes while not cheapening the everyday home photography.
Sounds to me like you are uneasy about raising your price. Peggy in Tampa, FL and others have demonstrated that if you provide solid quality and great customer service, just raising your price will bring in more work and increase your bottom line. Sure you should have tiered pricing based on square footage other things offered with the shoot like tours etc but just raise your price as you improve your quality and customer service, don’t worry about losing low-end customers. You’ll be much better off if you shoot for the top 10% of listing agents rather than the lower 90%. Keep working in that direction and don’t worry that some listing agents that can’t afford your services and find someone cheaper! That’s exactly the result you want as you build a successful business.