Recession-proof Pricing
[by Judy Herrmann]
This recession has hit photographers harder than any that I’ve lived through previously and many are working for lower fees than they’d ever consider accepting before.
Past experience has taught me that quoting lower fees during a recession makes it very difficult to bring those fees back to normal when the crisis ends. Instead, look for ways to streamline costs or scale back the project to meet client budget requirements.
Non-monetary compensation can be an avenue worth exploring providing the client has something to offer that you really need. Make sure any trades are based on exchanging equal value – you need to receive tangible benefit, not just promises.
If you feel you have no choice but to reduce your creative fee, don’t just quote a lower price. Instead, communicate the full value of your fee, verbally and in your estimates and invoices, then extend a courtesy discount to bring the total where it needs to be. The discount becomes an act of generosity – the tangible expression of your understanding that we’re all in this mess together – rather than a new definition of what your work is truly worth.
2 Responses to 'Recession-proof Pricing'
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Judy – A courtesy discount…. A great idea, and good method to be able to come back to your established value later on. Great way for both sides to benefit, yet save face.
Tom Kelly
I personally am not in favor of any sort of discount, regardless of how we word it. Clients will always expect this sort of discounting once you offer it. Moreover, they’ll tell others and they too will expect this sort of discount. Better to stand with your professional fees. In my practice I will lower my fee only if I do less work. I’m not about to give away what took me four decades to develop. Offer prospective clients options. Let them choose the one they can afford. Sure, they’ll want the Lincoln Town Car but they can only afford a used VW. They have to live within their means and learn that they’ll get what they pay for. We all have to learn that at some point.