Rangefinder Magazine
April 2006

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Extending Your Profitability Neal Clipper
 

For a photography studio to remain profitable, it must, like most businesses, continue to grow the bottom line. Yet, how does a studio do that when business is centered on one activity? The method we have embraced at Abbey Creative Photography is to extend the services we offer and to attack markets beyond the traditional. There are a number of options that can work for many studios when adapted for the particular markets in which they operate.

Like many photographers, most of our business comes from weddings, bar and bat mitzvahs and corporate events. At these types of events, we try to offer unique services. For example, we sell digital pictures that are shot and printed at the event, and we also sell video that is shot and produced on the spot.

Printroom.com. Additionally, we offer CDs with slide shows accompanied by music. I have found that many photographers bypass these types of services. It might be because they are not familiar with the technology or they are afraid they won’t be able to realize a significant return on investment.

These used to be bigger concerns than they are today. At one time, the technology would have been a major investment. I was once days away from buying a $20,000 event system when I went to a Photo East show. There, after talking to several vendors, I figured out how to put together a system myself with computers, printers and digital cameras.

Now, for less than $5000, one can get most of this technology and immediately make money with it by extending traditional applications.

Many photographers take wedding pictures. It’s a natural progression to take pictures of the guests at the reception and give the guests prints of these pictures. We came upon this idea when we found that the wedding party often provides guests with whimsical favors, such as a little flower vase or a tiny ice bucket. These gifts often cost about $15 per guest, and more often than not, guests just throw them away later. We suggest that the couple offer live digital pictures instead, and we try to come in at around $10–$15 per picture; it’s cheaper and provides the guests with something they will really want to keep.

To do this, I bring in a second photographer and an assistant. We set up background lights and a digital camera an hour before cocktail hour and stay through almost the entire reception. The guests come to the designated area for pictures. If 250 people are invited, then typically it’s 125 couples and we print 150 to 175 folders.

The folders help us keep track; we make a few extra folders to be on the safe side, but if we use all the folders, then we know we completed the job. Most important, we always get paid by the couple in advance and don’t charge the guests whose pictures we take.

We use a Nikon D2X digital camera along with a WT-2A wireless transmitter set, which provides increased transfer speed via 802.11g support. This allows us the freedom to load pictures wirelessly from the camera to the laptop. A critical factor here for speed and quality is that the printer and computer aren’t anywhere near the guests.

This is why we have the assistant working separately, away from the shooting area, so that person is free to pick the best prints.

Another effective tool we have for weddings, as well as our corporate events and bar and bat mitzvahs, is ACDSee software running on a Sony Vaio laptop. This photo manager software performs batch processing of RAW files; it also helps present images creatively. ACDSee can instantaneously pop images onto the computer screen, and then, within three seconds, the images pop up on a rear projection screen. We use a rear projection screen of up to 6x9 feet, so we can take a picture and say to the guests, “Look over there,” and their image will be projected on screen.

The software automatically refreshes and pictures keep popping up without having to push buttons manually. We can take those images, print them, and put them on a website where people can order them. This is another way of extending the existing services offered to clients, and increasing revenue at the same event.

The software is compatible with our Mitsubishi CP-9550DW dye-sublimation printer, which can output a number of different sizes. At most of our events, we have found that the biggest need is for 5x7 prints. At that size and at high resolution, the speed for each print is about 25 seconds. We configure our system according to the event; if the event requires 100 prints or less, we can do it with one printer. If the required print count is up to 400, we need two printers, and anything over that requires two computers and four printers.

We use the Mitsubishi printers because of their quality and reliability. The CP-9550DW is a virtually jam-free mechanism which, as most photographers know, is very important. I have done 20,000 shots without even a single jam. Also, pictures from this printer look more like photographs with a good glossy finish than pictures from other printers I’ve seen. The cost of the printer and media is less than other printers in its class, and the company also offers Express Replacement Assistance (ERA): If their technical support team can’t solve the problem over the phone, Mitsubishi offers a 24-hour replacement unit program so customers can receive a working replacement overnight with minimal interruption to business.

Once we have our prints, we use folders printed with our name and the date of the event, or the name of the bride and groom. For corporate events, print the company logo on the cover of the folders.

With regard to pricing these services, we try to gauge what our clients are planning to spend for favors and come close to that. We also promote the lasting value of prints, video images and access to the web for purchasing further prints. Although actual prices will vary from market to market, in our market, the New York metropolitan area, it’s not worth doing for less than $1800. Larger events require more manpower and would cost more. Similarly, in a smaller market the service will have a different price structure.

We have found that a good way to move clients up to additional services is to ask, “Do you want only pictures, or do you want video as well?” Often the clients have not thought of video, and we have found that almost all of them want it now. Once we book them in advance for the pictures, and before they have decided on other services, we will send a sample photograph and a sample DVD with a demo to show the client pictures and music or video.

We also offer brides a brag book, which collects the best pictures of the day to say, “Thank you for your business.” They show it around, and it has lasting promotional value for us. We have also found that a way to extend not only our service offerings, but also our client base, is to have quite a few country clubs, hotels and banquet facilities recommending us to their clients.

They provide us a lead list, and we work off that with direct mail or phone solicitation for photography and then the progression of extra services.

If we can sell the other services, the perception of the entire bill becomes higher. Because clients talk to other potential clients, if one communicated that they spent $10,000, then the potential client will come in with that as the reference point and may want to make a deal for a little less or, often, want to spend more.

In addition to extending our profitability with our existing client base, we are expanding the markets we address. For example, a very lucrative and untapped area is golf outings. We get these not by going to the banquet manager at a country club, but to the golf pro or course manager. I have offered to do a member and guest tournament for free, providing printed pictures to the golfers right on the spot with a folder that has Abbey Creative Photographers’ contact information on it. These venues are usually full of people with high levels of discretionary income, and they are pleased to come away with a great photograph from a happy event where everybody had a good time. For any future events or weddings, whether it’s the country club or even one of the guests, they have our contact information.

Whether it’s the client finding you or you finding new clients, and extending the services you offer, the key to expanding your profitability is expanded use of new technologies and tapping as deeply as you can into what your particular market offers.

Neal Clipper will be presenting a program at WPPI 2006 entitled, “Make $10,000 at Your Next Wedding or Social Event.” The program will be held on Monday, April 10, in BALLY’s Bronze Room 4:30–6:30 p.m.