The Business of Photography

In a Philippine photographers’ forum, somebody wrote that if Mercedes Benz or BMW priced their cars like Toyota’s, then nobody will buy Toyota cars anymore. Since the forum’s site is presently down, I will paste the quote here later, so that readers can have a better understanding of what prompted this post.

On the analogy of pricing cars and photography:

Some car manufacturers make different model cars, with particular models to address different market segments. Segmentation is not just based on economic levels, but also even based on the personality-types or genders of the customers they hope to win. For the sake of this discussion, I will focus solely on economic considerations.

Marketing people do use various marketing strategies in order to push their products. They may focus on the benefits of special features of their cars, for example, or do brand marketing where the focus is on what the brand represents, or even on the strength of its corporate identity, but at other times, especially when the market is depressed and all other marketing strategies have been exhausted, there may be need to adjust prices, or soften terms.

When they work on pricing, they look at where they are, and which market segment they are targeting. Sometimes, a price adjustment is only in reaction to a competitor’s decision to lower prices, or sometimes, they may initiate the price change. Again, this may not necessarily be an across-the-board decision, and may target only one model.

To go back to the analogy used, Toyota has high-end models that compete with Mercedes Benz and BMW, and if Mercedes Benz and BMW were to lower prices, it would not be to compete against Toyota’s medium level products but against their equivalent high-end cars. I don’t need to go into specific brands, as those who are interested in cars know what they are. But Toyota initially came to the Philippines to bring medium-level cars (although on a limited basis, it does offer super luxury cars), so the corporate image of Toyota has been heretofore identified, in the Philippines and other countries, with middle-level car models. (That will need to change when they aggressively push their high-end models). In the same way, Kia initially came in to cater to the low-end markets. Remember, too, that Volkswagen started as a people’s car, and therefore priced low to live up to the way it was being marketed (it does not cater to the low-end anymore). For that matter, Mercedes Benz brought in Korean-assembled vans to make them more affordable.

Car companies, as with other manufacturers or service companies, will do marketing according to the segments that they want to pursue (BPI and BPI Family for example address different markets), and will use different marketing strategies to reach them, pricing being one of those strategies.

In much the same manner, even in the absence of certifications or accreditations, Philippine photo studios have identified themselves as high end, middle level, or low-end, and possibly branding their photographers so that all these market segments can be reached.

For our own studio, we are presently catering to high end and middle level markets, and offer bi-level pricing to reflect the “brands” of our photographers (two senior photographers, two not-too-senior ones). When we adjust prices, we adjust to compete with photographers in their respective levels. But sometimes, a competitor or two of our high-end photographers may offer their services at the same price level as our medium-level photographers, and sometimes even lower. These would be the times when we would need to turn down the opportunity to serve our client, and express the wish for them to remember us when they have another requirement. Even though we may sometimes lose bids, as long as we are still being asked to bid, that’s good – it means we are still in our clients’ “circle of trust.” Quote from the Ben Stiller movie “Meet the Parents” or a similar title. =)

Even when we lower prices, we need to protect the integrity of our pricing, our photographers and our company – so there is a point for each of our stratified levels below which we cannot go. This may not be issue for a solo photographer, but for a studio like ours with four photographers, different-sized studios and different camera formats, pricing is not one uniform thing.

I hope that beginning photographers, as they get more business from the industry, periodically review where they are, and define the point when they can’t go any lower, without losing their self-respect and their investments. Forget what other photographers call you, or what you call other photographers, or what you call what’s happening in our industry, you need to study your numbers. Even for photographers at the low-end, which is where we started, there is need to study break-even points, so we know whether we are making profits or losing our shirts.

Photographers shoot because they are photographers. Professional photographers shoot to earn profits because they are professional photographers. Let us not confuse the two, even when they reside in one person.

In any business transaction, cash is preferred. Cash gives you the freedom to spend it any which way you want – to enroll in photography courses, to pay for advertising space, to spend on marketing materials, to buy a new camera or lens, to pay an assistant, or to spend or keep for yourself or your family.

However, there may be occasions, especially when you are just starting out, when your client offers you no cash or very little cash. Should you accept? Should you still do the job? Before you do, ask yourself two important questions - “what’s in it for me?” and, “what else can I get instead of cash?” Hopefully, by thinking through such offers, you can maximize your non-cash benefits from this less than ideal transaction.

When you are being asked to charge low or not to charge at all, ask:

1. Is everyone on the project working on a voluntary basis, or are you the only one being asked to render your services for free?It may be a worthwhile project, especially for charity or advocacies, and maybe everyone is really pitching in – then doing photography for free may be a worthwhile effort. Even in business, there are a few situations that may justify rendering your service for free. In the U.S., ad agencies and design studios are paid to pitch for an account, but in the Philippines, they are not. So, if everyone is pitching in to pitch for an account, being there with them (creative team, account management group) from the very start may land you the account when they do. However, if in either situation – charity or business - the designers or ad agencies are being paid, or their other suppliers are being paid, therefore, you should be negotiating to get paid.
2. Can you get products and services in exchange for rendering your services?They’re called gift certificates (GCs), and you can get them in exchange for the discounts that you are giving away. Hopefully, they’re just for the discounts, and you’re not being paid the full amount of your photographer’s fee entirely in GCs. It is also important that you are selective with which GCs to accept, otherwise, you will end up with worthless certificates that you did not cash in, or if you redeemed them, you will have products that you will never need, want or use, or cannot even give away. Check the expiration of those GCs – make sure they have far dates. If your client has several branches, ask for GCs that can be negotiated at any branch. GCs that allow debits and new balances would be better than GCs that demand that you redeem them in full (no cash change given).
3. What can you get for the discount that you are giving?If your client’s budget is smaller than the fee that you have in mind, can you negotiate for faster payments? Can they bring down the number of requirements, or number of hours that you need to work? Can they take care of prints, transportation, food etc?
4. If you are being promised future jobs in exchange for a sizable discount on what is possibly your first job with a client, be smart. Avoid giving discounts now for jobs that are still to come. You cannot give away what you have not yet earned. Instead, offer to give them rebates when those promised jobs come through – when they have been actualized and paid for.
5. Can you think in terms of pesos and centavos, instead of percentages, when computing how much you are giving away in terms of discounts? Instead of thinking 20% of P10, 000, think P2, 000. Maybe this will help you realize what you are giving away. If you are doing a project for free, don’t just think free – think how much you could have charged – P5,000? P50,000? – that’s how much you are giving away. The word ‘free’ does not help you feel how much you are losing. Then, keep a record of these discounts and see how much you give away in a year – you’d be surprised.
6. Can you get photo credits in respectable, legible, recognizable size and in a form or style that will help you reach paying clients? Get at least your website or email address in your byline, and do ask for bigger type sizes (points). A better arrangement would be for you to be credited in the same way as the author. If the author has a byline for writing the article, you should see your name displayed just as prominently – in both the article and the table of contents – especially if you are the only photographer contributing to the article.
7. Can you get them to do a full feature on you as a rising talent? If the people who approached you for free photography are publishers or editors, this is a possibility. It does not cost them any money for their writer to interview you and do an article on you.
8. Can you get advertising and marketing mileage in exchange for your free or discounted services?Ask your clients or customers to allow you to distribute your card or flyer at the event. Whether wedding or trade show, you have an opportunity to pull in possible clients, if you have a place where you can give away your marketing materials. In addition, if they have invitations, souvenir programs, banners or other materials announcing the event or the event’s program, you can get your name and email address (better still, your website) on all of them as sponsor. Just make sure that the market that they are targeting is the same as yours.
9. At weddings or events, get your client or customer to treat you like a guest – with your own seat at a dining table, and allowed to mingle with guests – so you can market your services to prospective clients.Just because they are paying you dirt does not have to mean that you should be treated as such. If you were covering a conference – can you have a free hour or so not doing photography but mingling with delegates or speakers so you can learn from the speakers or market your services to the delegates?
10. Can you learn something that can help you do better photography or better business in the near future? How much is that worth to you? How much would that be if you were to pay to get in – for example in a conference on entrepreneurship, business management, photography, advertising, weddings, or any field of photography that you want to get into. Especially if that’s the only or the best place to learn it, then working for free or a low pay may be worth something, after all.

Ultimately, the test on whether you should work for free or a low pay is this - compute how much it will cost you to do the job, and how much it would bring you in terms of benefits. There may not be any cash exchanged, but there should be an exchange, preferably equal or in your favor. In the end, nothing is really free, except when you give away your services and get absolutely nothing in return. Why should you?

Are you shy to ask questions and frustrated with the vague answers that you get? This article will help you formulate the right questions so you can get the information that you need to understand your customer’s requirements.

Filipino photographers can avoid a lot of aggravation, delays and miscommunications if only we would be more specific. It might be a cultural thing, but we Filipinos generally do not think in specific terms. When asked, “where are you going?” we answer, “dyan lang (just over there).” Or try asking “ilan?” and we get the answer “marami (many).” “Gaano karami (how many – said in an emphatic tone)” and the reply that can be expected is “maraming-marami.” “Kailan umalis?” is answered with “kanina pa (a while ago).” If you’re Pinoy, you can cite more examples of such vague answers.

The Filipino’s penchant for being vague may be acceptable in our homes, but getting and giving specific, measurable, quantifiable answers are needed when you are in business, including in the business of photography.

When clients or customers, especially those whom we are dealing with for the first time, ask us to quote for our photo services, we need to ask them some questions. Don’t be shy about doing this. Explain that you would like to give them a fair price, and you can only do so when you fully understand their requirements.

Ask questions to define what you are going to shoot. Ask questions that will help you get an idea on how much to charge. A wedding photographer once told me that the first questions he asks of couples inquiring about his rates are “Where will you hold the reception, and how many guests are you inviting?” Answers to these two crucial questions will definitely give you an idea – if it’s at the Shangrila Makati – you’ll know right away that they can afford a more high-priced photographer. If their guests run to over 300, that tells a lot about their expectations as well as budgets.

But don’t assume anything. Ask more questions.

If you are in advertising, ask where the photos will be used. How big will the pictures be? How many copies will they print? Where will they distribute these materials? How long will be billboard be displayed?

Ask for pegs (tearsheets from magazines or print outs from online images) and compres so you can see the quality of photos that they expect you to deliver.

Ask who else is bidding for the project. Ask how much is their budget, no matter how tentative. You might be surprised to find out that your client is thinking of a higher amount than you are – something you would not know unless you asked. Or, you could be overcharging just because you assumed that the job was going to be complicated.

I cannot list all the possible questions here, as they differ with each assignment or photographer. A portrait photographer will have a different set of questions from an aerial photographer, an advertising photographer, an editorial photographer or a wedding photographer. It is important to formulate your own set of questions to get needed information on what your clients need or expect.

Of course, you also have to practice asking these questions so they are free flowing and conversational in tone. You would not want to sound like an NBI or FBI investigator interrogating a suspect. You are a friendly professional photographer who wants to know his clients and how best to serve their requirements.

To be continued:

As you practice asking questions, I will be writing some tips on how to word your proposals, quotations or offers so that they define very specifically what you are promising to deliver. Watch for it next week.

When a photographer asks the right questions and succeeds in getting specific answers, he gets a basis for writing his proposal. A client asks him to quote for a job, and he submits a well-crafted proposal. Hopefully, a fair price, a fairly and attractively-worded proposal, his reputation or his potential as shown in his portfolio, can work together to land him the job and with it, a reasonable profit. Here are some considerations when preparing a photography contract.
The Fundamentals of a Photography Contract

A contract is simply to define expectations of both parties signing it, but photographers generally shy away from drawing up one because the word connotes many other things – lawyers, litigation, violations, penalties and many other unpleasant feelings. If you are among those who can’t say the word “contract” without wincing, let’s find some softer synonyms. What about “Memorandum of Agreement,” or perhaps “Terms of Understanding?” Be creative and find what you want to call it, but it’s something that MUST be done to avoid miscommunication and misunderstanding.

What then are the fundamental considerations when drawing up a photographer’s contract… oops, a Memorandum of Agreement?

1. A contract defines mutual responsibilities. Make sure you include, in your contract, your client’s and your responsibilities and deliverables, and the penalties and rewards (in other words -payment) for delivering or failing to deliver them. What does client expect from you in terms of images? Be very specific and descriptive so that anyone looking at your images can decide if you delivered or not. Indicate whose responsibility it is to provide products, props, talents, transportation and/or other services. You and your client should agree on payments and/or extra compensation for additional time, work or usage of your images; compensation for cancelled or postponed projects, especially when you have started to do some work for them and have already incurred expenses. For photographers who go on location, the contract should indicate if they should be compensated for weather-related cancellations. A contract also defines who owns what, which is especially useful to photographers in asserting their copyright ownership. It should govern other promises like how long they keep files (which can be anywhere from never to a few years). In all of these, be as specific as possible, using numbers to quantify your promises or what you are asking for from your client, in return for the services you are rendering.

2. A contract prevents negative surprises – on either side. Because a contract defines expectations so that you don’t spring surprises on each other, work relationships become smooth and productive. Your client hopefully will not haggle after the job is done; he understands that he can’t get the photographer to agree to shoot everything and everybody in sight, if that was not part of the contract; he knows when to pay you; and you, the photographer, must deliver all that you promised, on the day and date promised, and not whenever you’re done with your other jobs. And unless there were provisions for defined contingencies, you can’t just tuck in additional charges.

3. You can’t submit a firm quotation if your client only has tentative plans. When your client is still unsure of what and how much he wants done, indicate in your proposal that what you are submitting is also tentative, and that you would be glad to submit a firm quotation when the requirements can be better defined.

4. Protect yourself with clauses that limit your responsibility or liability, especially in areas that are hard to define or delimit. Certain phrases like, “if applicable,” if time allows,” “if available,” “except as indicated,” “equivalent equipment,” “we reserve the right to…” and other such limiting phrases, especially when you or your client is unable to really specify what is required, when you have no control over third-party materials or services, when there are many unforeseen risks, or when it is impossible to enumerate everything. This is not a cop-out, but a setting of realistic limits to an otherwise open-ended or questionable situation.

5. Make your form friendly, short and easy to understand. Don’t overwhelm your client with legalese, or with long contracts. If the project is big, you can write a short contract (one or two pages), then add separate attachments – such as shot list, itinerary, or payment schedules.

6. Give your client a chance to ask questions about your proposed contract. As you discuss your proposal with your client, he may have some questions. Sometimes, all he is needs is simple clarification. Sometimes, though, he may want to ask you to rewrite your proposal. You can re-negotiate and then rewrite your proposed contract until it is satisfactory to both of you.

7. Use your contract to cite some advantages of working with you. Maybe you have special expertise, equipment, facilities or services that are needed for the client’s project that other photographers bidding for the job do not have. You can cite them on a separate sheet or enumerate them in a cover letter, or if your contract is short, you may incorporate them in the body of your contract.

8. Don’t hide your terms and conditions in fine print. As much as possible, print your terms and conditions, together with the substance of your contract, on one face of the paper so that when your client signs, he is also signing to agree with your terms and conditions. Verbally go over the different parts of your contract, including attachments, so your client does not get surprised as to what it includes or does not include. If you have a complicated job, and you must have more than a page, you and your client can sign on all pages (no printing on reverse pages that you both may overlook).

9. Make it clear that they are signing a contract to commit, not just to receive a copy of your contract. Our cost estimates, for example, which serve as our contract when signed by both parties, have two spaces – one for receiving and the other for agreeing to the indications on the contract. We point this distinction to them, and ask them to sign on both spaces.

10. Remember that what you are aiming for is to have a respectable, profitable and long-term relationship with your client. It should be in this spirit that your contracts are written. Don’t make your contracts so strict that your clients get scared of dealing with you. On the other hand, don’t make your contracts so loose that you lose every time you sign on the dotted line.

I have also written a point-by-point discussion of what goes into contracts, but since it is rather long, it will come in several installments in the next few days. If you are too busy to check this site every now and then, you can sign up and you will be notified.

There are many resources on photography on the net, some touching on the business of photography.  The good news is – they’re free. So visit the following sites, join one or more fora, or just read other photographers’ blogs. Here are a few useful sites:

www.pinoyphotography.org/forum
www.digitalphotographer.com.ph/forum
http://cafejoetogo.blogspot.com/
http://www.photoattorney.com
http://finance.groups.yahoo.com/group/APAnet/

Please let me know when you find other useful sites or if you should decide to write your own blog on photography so I can inform other readers/photographers.

“You’re only as good as your last job.”

Someone told us this 34 years ago when we first set up Adphoto, our advertising photography studio. It was given, not as a gentle reminder but as a serious warning for us to always do our best, or we lose everything.

We were told that advertising clients are very unforgiving – not only in terms of the quality of work that we submit, but also with regards to deadline. Missing a deadline is a CAPITAL SIN. There was a time when newspapers and magazines would place the announcement “This Space Reserved” for so and so client or ad agency. If we were the cause of such dishonor, we would be dead!

It’s a warning that we have taken to heart, and guides us in every job that we do. (I don’t know if this saying is truer for people in advertising than in any other field of photography). We spend hours perfecting a shot, and we cannot sleep or eat until we get the lighting or special effects right. Nothing is sacred, and if the job required our photographers to stand on the edge of a ledge of a tall building, climb an industrial chimney, set up the tripod in the middle of a busy highway, or cross a raging river - then they would do so.

It could also mean working non-stop because deadlines are tight. My personal record for going without sleep is 39 hours (we were photographing a new car). I have also personally delivered Duratrans to an ad agency at 3am (they were needed before 6am), while John braved storm and floods to deliver his works to a client who insisted that he must have those transparencies, “come hail or high water.” (John rides a motorcycle so he can drive through traffic or flooded streets, riding if he must on sidewalks or islands).

We can’t afford to take anything or anyone for granted, and because it is a small industry with everyone practically knowing everybody else, one mistake or failure could be broadcast to the entire community in no time at all.

The reward for living up to that challenge is that now, 34 years later, we have clients who have been with us from the beginning – from 1973! We do not pretend to service them exclusively – advertising agencies usually have stables of photographers, but we are proud that we have been part of their pool through the years. On the other hand, there are some clients who have come, stayed a few years, and when enticed to try new competitors, leave us for a while, only to come again when their new photographers disappoint them. And then there are the ones we are most grateful for – those who have stayed with us exclusively through the years.

It’s not just about doing “a” job. It is about doing the job as if our lives depended on it – as if our entire career and business depended on it. We are indeed, “only as good as our last job.” In our unforgiving world, we work hard not to commit the sins that would drive our clients away. We work hard so that every job does not become our last, but takes us to another, and another, and another.

One of the “philosophies” that helps us, and can help you, to succeed is “No Excuses!”

We get paid to do a job, and we will do it, no matter what. At the end of day, clients are interested only to get the images that they commission us to get, not excuses - no matter how valid - on why we failed.

One time, John was in Mindanao to do photography for an annual report. The client remained in Manila, while sending him to various places in the south, with only a list of contacts who knew about his assignment. This was in the days of films and no cell phones.

He arrived at a major industrial plant and asked for the head of security. He was told that the security chief was called to an emergency meeting in another province. Since he did not have time to leave word with his subordinate, John could not secure permission to do photography at the plant.

John’s time was short. He only had about three hours there to accomplish his assignment before he had to leave for the airport for the next leg of his itinerary, but there was this security officer who was standing between him and his work.

“Look,” John said to the officer, “I have to leave at four but I cannot go back to Manila empty-handed. I understand that the chief is not here, and you were not given authority to let me shoot. But, if I went home without these photos, your company would have to send me here again. They would not be happy to spend again on my airfare and my fees. So, here’s my suggestion: If you will allow me to shoot, I will leave all my films with you. If, when the chief comes, he tells you that no, I had no permission to shoot – you can keep the films. If he says yes, I did have permission to shoot – then you can give him the films to send to Manila.”

The security officer thought about it for a minute, and decided that he could not get into trouble for giving permission to a photographer who would surrender his films. He would be in control of the films, and of the situation, or so he thought. He said yes as John prayed he would.

At the end of the photo session, John, as promised, gave the security officer, a few rolls of films.

When he returned to Manila, he gave his client the same number of rolls (after processing). He submitted images, not excuses. Mission accomplished.

P.S. After three days, his client received a set of unprocessed films from the chief of the security office. John didn’t need to explain to his client about the incident with the plant’s security office. There was no need to – all the client was interested in were the pictures.

When one of our managers resigned citing irreconciliable differences with some of our people, he was quite emphatic that it was beneath him to go down to the level of those he was in dispute with, and that he was not willing to change – that it was not he who needed to change, but everybody else. Unfortunately, he placed himself at a higher esteem and looked down on his people, and sadly, that separated them from each other.

But if a manager is not willing to change for his people, how can he expect his people to change for him? Respect begets respect, and if the only respect that he could have afforded his staff were to meet them where they were, then that would have been a good beginning.

Zig Ziglar said, “People don’t care how much you know until they know how much you care…about them.” If employees felt that a manager cares about them, then it is easier for them to accept him as a leader. He needs to come down from his pedestal. Sharing the same grounds from where to see things from the same perspective is one way that a manager can show he cares about his people. Having won his people’s trust, he can then lead them to a higher vision of how they should be working together.

On the occasion of the forthcoming series of car races (Petron-Miata Challenge) beginning on March 25, John wrote the following tips on how to photograph a car race. This article was first published on John’s thread on www.pinoyphotography.org/forum where you can get more information about the Petron-Miata car races (or photography).

Tips on How to Photograph a Car Race
by John K. Chua

Last Saturday, I was invited to give a lecture on car racing photography at the Federation of Philippine Photographers Foundation (FPPF) photography class at Fort Santiago. A series of car races is being organized by the Miata Club, which is celebrating its 10th anniversary. The races will be held in Subic, under the sponsorship of Petron Philippines. The FPPF, on the other hand, will supervise the photo contest.

Here are some pointers on photographing a car race:

1. Prepare your equipment

a. Charge your battery.
b. Clear and reformat your memory cards.
c. Make sure that your sensor is clean.
d. Charge your media storage or bring extra batteries.
e. Get the right lens: wide, zoom and telephoto lenses.
f. Shoot raw, if possible.

2. Prepare yourself

a. To avoid heatstroke, dress properly – wear a long-sleeved shirt, and bring a hat.
b. Use sun block.
c. Bring drinking water and power bars.

3. Visualize

a. Read photo magazines or watch videos that feature cars and car races
b. Prepare for the unexpected.
c. Learn about the event. Inquire about the program (most of your time will be spent waiting for them to start).

4. Plan to do a photo essay so you can tell a story with your pictures, instead of just taking snap shots. Take pictures of:

a. Before and after the race
b. Preparations of drivers, cars, assistants
c. Actual race
d. Winners and losers
e. Beauty shots of car and model (fashion models sometime grace car race events)
f. Close up of parts of car with and without models
g. Crowd, and single out some spectators

5. Other tips:

a. Make friends with participants – you might get a chance to ride.
b. Make friends with fellow photographers – you might get some tips.
c. While shooting, look for possible gridlock. Expect to shoot some close fight.
d. Find out who is favored to win.
e. Seek out the most unique drivers: oldest, youngest, and prettiest…
f. If you got a good shot, get the subject’s email address or phone number. Share your photos and win some goodwill.

6. After the shoot:

a. Download your CF cards to computer but do not erase your CF images.
b. If possible, have duplicate folder on external drive.
c. View your images and edit them first before developing.
d. Save as in a different folder.
e. Do not touch (retouch) your original file.
f. From selected raw files, choose best shots.
g. After that, review your original folder for additional images that you might have overlooked.
h. Keep CF images until you are fully satisfied that you’ve saved them all and you are ready to start a new project.

Large 8 is an exhibition of truly large photographic abstract art. The idea was born while six members of the Camera Club of the Philippines were having dinner a few weeks ago, and expanded to include two other members. Superb printing – which provided rich colors and textures on a grand scale- was done by Epson Philippines.

The featured artists include (in alphabetical order) Bien Bautista, BenCab, Quincy Castillo, Emil Davocol, Pancho Escaler, Jojo Guingona, Wig Tysmans and Jaime Zobel de Ayala.

Intended to reach a great mass of even ordinary Filipinos, their choice of venues is perfect – the SM malls. The following is the schedule for the traveling exhibit:

March 8-19 Mall of Asia
March 21-27 MegaMall
March 31-April 9 Baguio
April 11-April 17 Clark
April 19-24 North EDSA
May 9-13 Davao
May 30-June 7 Bacolod
September 14-20 Cebu

Each photographer contributed two works of art, providing Epson with files as large as eight gigabytes! The printed photos measured 6.5 feet and 10 feet each.

Because the prints are very large, and the images grand, they are best seen in a large venue. If you have time to catch the exhibit tonight at the Mall of Asia, that would be the best way to view them. Otherwise, wait for it at the SM nearest you.

After viewing these images, you’d wish you lived in a palace, where these fantastic photos truly belong. Congratulations to all the Large 8 photographers!