This morning, I conducted a “mini test class” on the business of photography, with 9 members of the digitalphotographer.com.ph forum attending.
The following is part of my notes. The discussion and role playing were very interesting. The class was a lot of fun, and I hope I can offer it again. 
Negotiating Photography Services:
When you approach the negotiating table, what do you bring with you?
Do not go empty handed and think that you can wing it. Do your research – on yourself or how to market yourself, on your competitors, on your clients and even their competitors, and the project at hand. These questions are by no means exhaustive, but trying to answer them can make you better prepared to negotiate.
On yourself:
How good a photographer are you? Are you adequately equipped – in terms of experience, facilities, equipment, and staff or support services– for the job that you are bidding for? What are your costs and your break-even points? What kind of price would you aim for, or be acceptable to you, and what would not be?
On your competitors:
Who are your usual competitors? Who are your competitors for this particular job? Are you as good, or better, or worse off than your competitors for this particular job? Who among them do you think is the favored one? Who among them is not equipped to handle the project? How do they normally price? What special qualities do they have? What do you think would make them win over you?
On your clients:
Is your client a start up, a hard-up local company, a multi-national? Are they profitable? What do you know of the brand that you will work on? Who are the photographers they usually work with (local, international, high-end, low-end)? Whom do they favor? How do they perceive you? What do they consider when choosing a photographer to bid for them? What do they consider when choosing a photographer to get the job – reputation, dependability, facilities, equipment, suitability, style, price, relationship, favoritism etc.? Who is the decision maker?
On the project at hand:
Have a thorough knowledge of what is being required of you. Ask for a shot list. Ask for pegs. Ask them to explain what images they expect. Ask for sequence of shoots. Ask if products are all available for one photo session? If they need outdoor shots, do they need dawn or dusk shots? What responsibilities do they want you to assume?
Negotiating is an art, a science and a skill that can be learned. In addition to getting to fully understand the process and its different components, try to approach the negotiation table with these fundamental knowledge and beliefs:
1. Believe in yourself. This includes having the determination and negotiation skills to keep at or above the price and type of work that you’ve set. Have the courage to walk away from jobs that are beneath you. Believing in yourself also means investing in yourself so you can continue to rise and deserve better assignments, prices and respect.
2. Know how to sell yourself. Everything that you have, know or can do – collectively called value – is useless at a negotiation table if you cannot relay that information and impression to your client. Sometimes, clients think our work is simple and so, they price us accordingly, but if they are made aware of how much is required – experience, equipment, facilities, experimentations – then they may be more willing to concede.
How many times have you heard uninformed customers say – “That’s just one shot?†Or now that it’s digital photography, that “anyone can do it.†It’s time for us to emphasize that in addition to investing in expensive equipment, professional photographers invest in their training and education. The experimentation that helps build up expertise may take years. We should emphasize that we can actually save clients time and money because we know how to do the job properly and we are not experimenting at their expense.
What value do clients get when they work with a pro? Make a list and be ready to recite some of them when they say to you – “but, that’s simple, anyone can do it.â€
3. Respect your client or customer. Realize that your client or his representative or agency is mandated to find the best photographer for the job at a price that they can afford. The customer’s goal is to try to minimize cost without sacrificing quality. When negotiating, do not take personal offense if they try to haggle or cut costs – that’s their job. Your job is to defend your price, and – the way things are going nowadays- even your profession.
4. Be creative in getting concessions. When your clients ask for a concession, ask for a concession for you in return. It does not have to sound like a “Quid pro quo†or “Tit for Tat†– you can find the right moment when to give and when to ask. Maybe you can say yes to a discount that your clients are asking for, if they would reduce the number of shooting days, hours, variations, CD sets, Photoshop editing, or if they would be willing to pay a bigger down payment, or pay the balance earlier, sign you up for the next contract, pay you a retainer, provide transportation or food. Or maybe they can let you charge separately for the extra services, etc. Or, when they ask for more set ups, you can charge for variations. If they are not sure that they really need or would need what they are asking for, offer them (extra hours, days, prints, set ups etc) as options. Assure them that they will get charged only for what they ask for.
5. Think of long-term costs and implications when giving concessions. A ten percent discount that did not win you any reciprocal concessions may spell the difference between being profitable or not profitable. Careless discounting can erode the credibility of your pricing, or even of your reputation.
6. Be flexible. If, from the start, your client does not think you will move an inch from your fixed position, then they may not even ask you. Encourage clients to ask you – who knows, it may be something you are willing to grant.
7. Believe that negotiations should be win-win situations. This is not a winner-takes-all kind of interaction. Instead, if you demonstrate that you respect your client and that you are genuinely looking for solutions that are fair to both of you, your client will reciprocate.
8. Don’t jump to conclusions. It’s very easy when we lose bids to blame the winning photographer of lowballing and accuse him of giving an unreasonably low bid, but it may be unfair to do so. Most companies look at bids and analyze the bidding patterns – who is high, who is low and who is in-between, how many are in each cluster, and how far apart are the bids. The lowest bidder is not always the winner, and the highest bidder is not always the loser. Find out what the client considered and learn from it.
9. Don’t burn bridges. Don’t be a sore loser. Congratulate the winner, and maintain your relationship with your client. Even when you lose a job, you can still keep a client. Some photographers quit bidding for jobs when they don’t win bids – I think this is a mistake. You can’t win if you are not even in the ballgame – so welcome every invitation to bid and try to improve your chances of winning by being prepared.
