Why I Do Not Use Day Rates
Like many photographers, I started my professional career by charging a “day rate” for my services. Rather than considering the scope of a project or the use of the images, I simply set a “day rate” or “half day rate” and applied those numbers to each request. I realized quickly this wasn’t working. One day I would be run ragged with a client piling on the number of images they wanted me to generate and the next a client might ask me to reduce the fee because I finished early. With no specifics in my paperwork except “one day on site,” I had no recourse. Today, every estimate I calculate is specific to the job and contains; a detailed description of the project, the number of images being commissioned, the license to use the images and my price. If anything changes, my price changes.
Here is some food for thought …
* Day rates punish efficiency.
* One size fits all pricing does not work in this business.
* The creative process does not work by the clock. Sometimes the elements to achieve a fantastic image come together quickly, sometimes the process takes longer than expected.
* By charging “per image” or “per project,” I take into consideration the time needed to create the work, but more importantly I consider the specifics of a job and the client’s use of the images.
14 Responses to 'Why I Do Not Use Day Rates'
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By charging per image, do you mean say, I charge $150 per image that client selected in the end? or I charge $150 per image that I supply? I could be supplying 100 image per assignment but if it’s up to the client, they might only want to select 10 images. It makes world of difference. Could you elaborate on whether it’s per image client selected or per image supplied by photographer?
Thanks
eL
Hi Erik,
I am an architectural photographer and a typical scenario for me is to provide an estimate for an architect to take ten photographs of a building. I will write a license and set a price for delivering up to ten images. I will frequently provide more than ten for the client to select from, but the price is based on the license to use up to ten images. If they want to license more than ten, I have a previously agreed upon per image license fee that I add to the invoice. If they want to license nine, I am covered by the “up to” language and the invoice doesn’t change.
When pricing assignments, like event coverage or public relations, where many images are being generated, I price the work as a project with specific parameters. I will cover this event for “up to xx hours” and the license will give the client use of up to xx number of selected images. I establish the fee and initial license to give me what I need to make the assignment profitable. Another option is to license the client access to any image generated on the assignment and charge a processing fee per image delivered. You need terms to protect yourself from being buried in post production as sending off ten finished digital files is a lot less work than preparing 100.
Whatever system you use, the key is to have it all established and agreed upon with the client prior to the photography taking place. Paperwork and communication are critical to smooth business and repeat clients!
Hope this helps.
Susan
Good thoughts Susan,
When I started I would use 1/2 and full day rates. Even hour by hour rates. I wanted the client to feel they received value for their images. It wasn’t working. You could see in prospects eyes the wonder – is this guy really worth XXXX an hour/day?
When I switched to per image pricing, it became part of my story. It was a system that respected my clients time, it took the focus off my time and on to the value of each client selected image.
I became a better (not perfect) job estimator. My average “day rate” tripled and my clients where happy to purchase additional images. They saw the value of each image and where happy to pay for them.
I’ve billed myself as the high value – low risk photographer by incorporating the per image pricing system.
Just my 2 cents
Rosh
Thanks for the advice Susan, it was very helpful!
Would it be possible to get a sample estimate/license? I’m just getting started on my own and I’m looking for a template. I have a copy of ASMP’s Professional Business Practices on the way, but I’d like to see a working copy, if possible.
Louie
Louie,
Sample forms are available here http://www.asmp.org/forms.
Best,
Susan
Thank you Susan,
This leads me to rethink my pricing structure.
Cheers,
Eric
I believe it is a serious mistake to dismiss day-rates like this. Many of the same arguments can be made equally effectively against pricing per-image, rather than basing creative fees at least partially on the time involved in creating the images. There needs to be a day-rate element involved in almost every assignment fee quote, in my opinion.
I can’t tell you how many times I’ve arrived on location to shoot a job only to discover that the shoot we planned couldn’t happen due to circumstances beyond my control. The space or facility we were scheduled to shoot was in use or under construction, weather caused delays, or the client wanted some change in how the subject was shot (still the same description, but the change in what was being shown meant a whole new approach to lighting, time of day, perspective, or subject availability). If I had quoted my price based on a per shot amount, I’d be stuck eating all the costs for the delays, changes, or waiting around.
Much of my work in recent years has been VR (primarily panoramic) photography. If I go into a corporate facility or even an architectural environment, I can usually make a good estimate before hand of how many panoramas I can photograph in a given day. For example, photographing a NASA wind tunnel interior required three full days to light and prep for a single panorama. For an architectural show home, we were able to average 15-20 per day over three days. However, I cannot always anticipate what problems we might run into that are going to completely screw up my expected shooting efficiency.
What was originally expected to be a three-day shoot, could turn into a 7-to-10-day shoot due to circumstances entirely outside of my control. Or I might only be able to complete 10 shots over that three days, when I expected (and quoted fees for) two dozen. If I’ve quoted the client on a per-image basis, I get left holding the bag for situations completely beyond my control or influence.
Instead, I tell the client that based on my experience with a given type of shoot or subject matter, I believe we can probably create X number of images in a given day — assuming all goes according to plan. I charge so much per day (often with a half day rates for travel or other non-shooting/delay days), which usually includes specific usage rights that they need. Often times, I will specify a minimum fee, as well. If the shoot takes longer than expected, they know it will cost more. If it takes less time because we are collectively more efficient, then it will cost them less.
if a three-day shoot winds up being accomplished in a single day, why shouldn’t the client realize some savings (remember that including a minimum fee allows me to make sure I make a minimum amount)?
There are real estate VR photographers who charge less than $50 to shoot four to 10 panoramas of a property (which includes stitching and post production). That works out to $5 or $10 per shot. That’s not the sort of comparison I want my clients to be thinking about when they hire me and hear that I charge similarly but that my “per image” rate is so much extraordinarily higher.
I WANT my clients to know that my time is valuable, just as they want me to appreciate the value of theirs. There’s nothing to be embarrassed about for earning whundreds of dollars per hour for the days that we’re actually shooting. It’s these days that have to make up for all the other days that we work to keep our businesses running that we’re NOT getting paid.
Scott Highton
I’ve been charging a day rate, 1/2 day rate, and sometimes hourly. And I get exactly what Rosh mentioned. The holly smokes! You charge how much!
I’d love to see some more working examples though on how you charge per image. I’ve used photo quote and whenever I try to license an image off of those numbers I always loose the estimate. Any one have any working numbers on how the they license images?
-Steve
Paul,
Fees for event coverage work are weighted heavily on the time on site, but I suggest you protect yourself and use language like – this event will be covered for “up to” four hours for xxx fee. Then if they send you home in three hours, your invoice doesn’t drop. Guarantee yourself a minimum.
Susan
I use an Assignment Rate. There are a few advantages in doing this. It forces the client to state what they want instead of just vague ideas. It also allows you to easily increase the fees if the client changes the game plan. More importantly, an Assignment Rate gives the client an accurate bottom-line price including costs. A day rate only gives the client your rate but doesn’t include any of the substantial expenses. Makes for an unhappy client. I’ve done this for years and my clients are very pleased that I do what I promise and the fees nearly always come in just as I stated.
This is quite a up-to-date info. I think I’ll share it on Facebook.
Guys, thank for the good read. I have a question, maybe you could help me out with.
I’m shooting an event for a group of fraternities and sororities at a picnic kind of event. Should I charge a day rate as I probably will be there from start to finish; or should I provide per shot fee?
I think it would be better as a day rate because the event will have people coming and going throughout the day. But your opinions could help me change my mind.
More details: Event will last roughly 6 hours, 9 total fraternities/sororities. Dallas Metroplex.
You should put specific parameters in writing that protect you – what if only 7 fraternities/sororities get photographed? Or, what if your client asks you to photograph additional groups? Or, tells you that things are slow and you can go after four hours. You want to make sure your fee stays in tact. Consider providing a fixed fee for up to xx hours and up to xx group portraits. And, then provide fees you will charge if they need more time or photos.
It is so hard to decide on pricing for services. Every client is different and they all require different services, but I do agree that day rates end up being a bad idea in the end.