Here's the Truth About Setting Your Prices

Setting prices isn't about guessing what feels right – it's about understanding your worth, doing the math, and telling your story. We get it – pricing can feel overwhelming. Price too high without showing your value and you'll lose potential clients. Price too low and you'll burn out with too much work and not enough profit.

In This Guide, You'll Learn:

• How to choose the right pricing model for your business
• The exact formula for calculating profitable rates (includes a free pricing calculator)
• Ready-to-use pricing templates you can implement today
• Contract terms that protect your profit

TL;DR

• Pick a structure that fits the job: value‑based projects for outcomes, good–better–best tiers for choice + anchoring, retainers for cash‑flow stability, day‑rates for ambiguous scope, and performance‑based only when you can measure results. Learn more in this article from Harvard Business Review.
• Do the profit math first (owner pay + overhead + profit + taxes → revenue target; realistic utilization → floor rate). Many agencies aim ~70–75% billable utilization; in practice, most struggle to clear 50%. Price accordingly.
• Photographers: separate a creative/session fee from products or licensing. Build packages from your cost‑of‑doing‑business (CODB) and COGS markups. Use current market anchors wisely (e.g., 2024 U.S. wedding photography avg ≈ $2,900)
• Protect profit in your contract with change‑order language, termination (“kill”) fees, and explicit IP/licensing terms (AIGA’s model agreement is a great starting point).

What Are the Best Pricing Models for Photographers?

1. Value-Based Project Pricing

Perfect for: Brand identity projects, conversion-focused websites, strategy work

Why it works: You're pricing the outcome (more bookings, higher sales) rather than counting hours. When clients see the value they're getting, price becomes less of an obstacle.

How to make it work:

• Start with a paid discovery session to understand what success looks like for your client
• Set clear project boundaries with change-order rules
• Always check your pricing against your minimum profitable rate

2. Good-Better-Best Packages (The Power of Three)

Perfect for: Website packages, brand suites, photography collections

Why it works: Three options help clients choose without overwhelming them. The middle option usually becomes the sweet spot – and that's exactly what you want.

Setting it up right:

• Keep it to three options (research from UCLA shows more choices actually reduce purchases)
• Make your middle tier the “most popular” option
• Each upgrade should add clear value for the client
• Use add-ons for customization instead of creating endless custom proposals

3. Day Rates & VIP Days

Perfect for: Website audits, rapid prototypes, intensive photo shoots, strategy sessions

Why it works: Sometimes you don't know exactly what a project needs until you dig in. Day rates let you provide value while keeping scope flexible.

Keeping them profitable:

• Price at a premium (this is intensive, focused work)
• Be crystal clear about what can realistically be accomplished
• Use these as stepping stones to larger projects

How Do I Calculate My Minimum Profitable Rate?

Before you set any prices, you need to know your numbers. Here's the simple framework we recommend:

After reading this section, use the free photography pricing calculator to figure out your own numbers

Step 1: Calculate Your Annual Target

Start with what you need:

• Your desired salary
• Business overhead costs
• Profit margin (aim for 15-20%)
• Tax obligations

Add these up for your total revenue target.

Step 2: Get Real About Your Capacity

• How many weeks will you actually work?
• How many hours per week can you dedicate to client work?
• What percentage will be billable? (Hint: if you're planning for more than 70% billable time, you're probably being too optimistic. Most creatives land around 50-60%.)

Step 3: Find Your Floor Rate

Divide your revenue target by realistic billable hours. This is your minimum – never go below this.

Step 4: Build in Breathing Room

Your day rate should be your hourly floor × 8 hours × 1.2 (that extra 20% accounts for the intensity of focused project work).

How do You Present Your Prices on Your Site?

Your pricing page can actually help you close more clients – here's how to structure it:

The Layout That Converts

Start with a clear headline that speaks to outcomes, not just services. Follow with a brief paragraph that positions you as a partner in their success.

Present your three packages with:

• 4-6 clear benefits (focus on outcomes, not just features)
• A standout “recommended” option
• Simple, action-oriented CTAs

Add trust elements:

• Client logos or testimonials
• Specific results you've achieved
• A simple “How We Work” timeline

Include an FAQ section that addresses common concerns before they become objections.

Here Are a Few Ready-to-Use Package Templates for Photographers

ESSENTIAL Collection

• 4 hours of coverage
• Full edited gallery
• Personal use license
• Online print store access

SIGNATURE Collection (Most Popular)

• 8 hours of coverage with a second shooter
• Engagement session included
• Album credit included
• Expanded usage rights

LUXURY Collection

• 10 hours with two photographers
• Premium album and parent books
• Rehearsal dinner coverage
• Full commercial licensing available

The Power of Paid Discovery

Here's something that might surprise you – charging for discovery sessions actually helps you land better projects. A small discovery fee (typically 5-10% of project cost) helps you:

• Understand exactly what the client needs
• Set clear expectations and boundaries
• Reduce scope creep and change orders
• Position yourself as a professional from day one

The deliverable? A clear brief with goals, success metrics, and a realistic project plan.

Protecting Your Profits with Smart Contracts

Your contract isn't just paperwork – it's profit protection. Make sure yours includes:

• Change Management: Clear process for handling requests outside the original scope
• Termination Protection: How you'll be compensated if the project ends early
• Licensing Terms: Exactly what rights the client receives and when

Consider starting with AIGA's standard agreement and customizing it with your attorney.

How Should Photographers Structure Their Pricing?

As a photographer, you've got multiple revenue streams to consider:

• Separate your fees: Price your creative time separately from products and licensing
• Know your costs: Use a Cost of Doing Business calculator to set minimums
• Mark up products strategically: Albums, prints, and wall art should include healthy margins
• License thoughtfully: Commercial use commands premium pricing

Remember, the average wedding photography investment in 2024 is around $2,900. Use that as context, not a ceiling.

Photography Pricing FAQs

1. How do I choose between hourly, project, or retainer pricing?

Match the model to the work. Unknown scope? Try a day rate. Clear outcomes? Go with fixed or value-based pricing. Ongoing needs? Retainers work beautifully.

2. What's realistic for billable time?

Plan for 60-70% billable time at most. Test your pricing at 50% utilization to ensure you're still profitable during slower periods.

3. How many pricing options should I offer?

Three is the magic number. It's enough to provide choice without creating decision paralysis.

4. What's a healthy profit margin?

Aim for 15-20% net profit. Price your services to hit this target even at conservative utilization rates.

What Are Common Pricing Mistakes to Avoid? (And How Should You Fix Them)

We've seen talented photographers and designers struggle with the same pricing pitfalls over and over. The truth is, these mistakes aren't just costing you money; they're keeping you from building the sustainable business you deserve. Let's fix that.

Mistake #1: The Comparison Trap – Copying What Everyone Else Charges

What happens: You browse competitor websites, find someone charging $2,000 for a website, and think “that must be the going rate.”

Why it hurts you: Their costs, experience, and value proposition are completely different from yours. You're essentially guessing at their profit margins – and they might be struggling too.

The fix: Calculate YOUR numbers first. Use the profit math formula we shared above. Know your costs, your desired income, and your capacity. Then research competitors for context, not as a pricing bible. Your unique value deserves its own price point.

Mistake #2: The Busy Fool Syndrome – Confusing Being Booked with Being Profitable

What happens: Your calendar is packed, you're working 60-hour weeks, but somehow there's never enough money at month's end.

Why it hurts you: Being busy feels productive, but if you're not profitable, you're just running on a hamster wheel. You'll burn out before you build wealth.

The fix: Track your actual profit per project, not just revenue. If a $1,500 project takes 40 hours, you're making $37.50/hour before expenses – that's not sustainable for a skilled creative. Raise your rates or streamline your process. Sometimes fewer, better-paying clients is the answer.

Mistake #3: The Frankenstein Package – Adding More Stuff Instead of More Value

What happens: Client hesitates at your price, so you throw in extra pages, more revisions, additional deliverables. Your packages become bloated monsters.

Why it hurts you: You're training clients to negotiate and devaluing your core offering. Plus, you're adding work without adding profit.

The fix: When clients push back on price, dig deeper into the value, not the deliverables. Instead of “I'll throw in 5 more pages,” try “This investment will help you book 2-3 more clients per month. Let's talk about how we make that happen.” Add value through results, not just more stuff.

Mistake #4: The Mind Reader Assumption – Never Talking About Money Until the Proposal

What happens: You spend hours on a detailed proposal, send it off, and get ghosted. Or worse, they're shocked by the price because they expected something completely different.

Why it hurts you: You're wasting time on prospects who were never going to be clients. Plus, the sticker shock creates an awkward dynamic.

The fix: Have the money conversation early. In your first interaction, share a range: “Projects like this typically invest between $3,000-5,000. Does that align with your budget?” If they balk, you've saved everyone time. If they're interested, you can refine from there.

Mistake #5: The Discount Spiral – Cutting Prices Instead of Communicating Value

What happens: Someone says you're too expensive, so you immediately offer 20% off. Then another discount. Soon, you're known as the designer who always has a sale.

Why it hurts you: Discounts train clients to wait for sales and question your original pricing. You're literally teaching them your work isn't worth what you first said.

The fix: Have one set of prices you believe in. If someone truly can't afford you, offer a smaller scope instead of a discount. “I understand budget is tight. Instead of the full brand suite, we could start with just logo and essentials for $X.” You maintain your value while meeting them where they are.

Mistake #6: The Apology Pricing – Acting Embarrassed About Your Rates

What happens: You present your pricing with qualifiers like “I know this might seem like a lot, but…” or “My prices are a bit high because..

Why it hurts you: If you don't believe in your value, neither will your clients. Your energy around pricing is contagious – make it confident, not apologetic.

The fix: Practice saying your prices out loud until they roll off your tongue naturally. Stand behind them with quiet confidence. “My photography investment starts at $3,500” – period. No justification needed. Your work speaks for itself.

Mistake #7: The Scope Creep Enabler – Saying Yes to “Quick Favors”

What happens: “Can you just quickly adjust this?” “Would you mind adding one more page?” These small requests add up to hours of unpaid work.

Why it hurts you: Those “quick” 15-minute favors? They're never 15 minutes. And they set a precedent that your boundaries are flexible.

The fix: Build a buffer into your pricing for minor adjustments, but have clear boundaries. Create a simple change order process: “I'd love to help with that. Since it's outside our original scope, it would be $X. Should I send over a quick change order?” Most clients will either happily pay or realize it's not that important.

Mistake #8: The Time Machine – Pricing Based on Where You Were, Not Where You're Going

What happens: You set your prices two years ago when you were just starting. Now you're booked solid with better skills, but still charging beginner rates.

Why it hurts you: You're leaving money on the table and attracting clients who might not value your current expertise level.

The fix: Review your pricing every six months. If you're booked solid for more than two months out, it's time to raise rates. Increase by 10-20% for new inquiries (existing contracts stay as-is). Your prices should grow with your expertise.

Mistake #9: The Crystal Ball Problem – Not Planning for Slow Seasons

What happens: You price based on being fully booked year-round, then panic when January is slow and bills are due.

Why it hurts you: Desperation pricing kicks in. You take bad-fit projects at lower rates just to pay bills, which perpetuates the cycle.

The fix: Price for reality, not optimism. If you know January-February are slow, your pricing from March-December needs to cover those months too. Build a buffer into your rates that creates a cushion for natural business cycles.

Your Pricing Confidence Checkpoint

Here's a quick gut-check to know if you're making these mistakes:

• Do you immediately offer discounts when someone objects to the price?
• Are you constantly busy but never quite profitable enough?
• Do you dread the pricing conversation?
• Are you charging the same rates as last year (or longer)?
• Do projects regularly expand beyond the original scope without additional payment?

If you answered yes to any of these, it's time to reset your pricing strategy. Remember – your prices aren't just numbers. They're a reflection of the value you bring, the problems you solve, and the transformation you create for clients.

The good news? Every single one of these mistakes is fixable. Start with one change this week. Your future self (and bank account) will thank you.

Ready to Build Your Profitable Pricing Page?

You've got the knowledge, now it's time to put it into action. Your Showit website is the perfect place to showcase your pricing with confidence. With drag-and-drop design, you can create beautiful pricing tables that convert visitors into clients.

Remember, your website is where potential clients decide if you're worth your prices. Make it count.

Start your Showit free trial and build packages that showcase your value. You've got this, and we're here to help every step of the way.