If you're a photographer who has ever received a request from a business or agency for pricing on a commercial photo shoot, then you know the importance of creating a quote that includes your commercial photography fee. However, determining the right fee can be a daunting task. In this article, we will guide you through the process of calculating your photography fee, enabling you to confidently price commercial photography jobs.
Commercial Photography Pricing 101
Before we delve into commercial photography fees, let's review the basic principles of pricing. A commercial photo shoot estimate consists of four key components:
- Non-photography fees charged by the photographer
- Daily photography fee (the focus of this article)
- Usage fees to license the images
- Expenses required for the production
Non-photography fees encompass pre-production, tech/location scouting, model/talent scouting, travel, post-processing, and retouching fees.
The daily photography fee is the main charge for providing photography services. It typically covers service time and not the products or images produced.
Usage fees are charged to clients for licensing and using the images in specific ways.
Expenses include costs incurred during the production, such as assistants, models/talent, wardrobe, hair and makeup, digitech, equipment rentals, location rental fees, and more.
'Day Rate' Backstory
Traditionally, photographers used the term 'Day Rate' when referring to their pricing. However, this term has fallen out of favor and been replaced by 'Creative Fee' or 'Photography Fee.' The term 'Day Rate' is misleading, as it implies that the photographer's work is limited to a single day. In reality, there are numerous tasks involved in preparing and wrapping up a shoot that extend beyond a single day's work.
Using the term 'day rate' can give clients the false impression that they are only paying for the day of shooting, disregarding the additional time and effort invested in the project. To avoid misunderstandings, it is best to use 'photography fee' or 'creative fee' instead.
'Day Rate' vs. 'Creative Fee' vs. 'Photography Fee'
The term 'Creative Fee' combines the photography fee (e.g., day rate) and usage fee into a single charge. It is suitable when it is challenging to determine the time and licensing fees on a per-image basis.
A 'Photography Fee' is simply a fee for the photography service, similar to a day rate. However, it does not specify the exact duration of time.
When creating estimates or bids, including your photography fee as a separate line item provides more transparency for clients, especially those focused on cost breakdown.
It is important to educate clients about the different fees and the value behind them. Small business clients may prefer a photography fee that includes pre and post-production work to simplify the estimate process.
Half Day Rate
While some photographers offer half-day rates, it is essential to recognize that a half day of photography does not accurately represent the total time and effort involved. Additional tasks such as travel, equipment setup, post-processing, and more must be considered.
Photographers who choose to offer half-day rates should charge between 65%-75% of their full-day photography fee to account for the extended time and potential missed opportunities.
It is also acceptable to set a minimum photography fee with flexible hours for shoot completion. This approach ensures fair compensation for the photographer's time and effort.
Pricing Commercial Photography Fees
Determining commercial photography fees is a complex topic that requires careful consideration of various factors. While this article provides some strategies and examples, it is important to tailor your fees to your unique circumstances and expenses.
Commercial photography fees in the United States typically range from $1000 to $5000 or more per day. Keep in mind that these rates only reflect the photography service and do not include usage fees, which can generate substantial revenue.
New photographers usually charge between $1000-$1250 per day, while more established photographers without representation charge $1300-$3000 per day. Well-known photographers with representation command fees ranging from $3500 per day and upwards.
It is worth noting that rates can vary widely based on factors like location, client size, and photographer experience.
How to Calculate YOUR Commercial Photography Fee
To calculate your own commercial photography fee, follow these steps:
#1: Determine Your Annual Revenue Goal
Start by reverse engineering your fees to determine how much revenue you need to generate annually to cover your personal expenses (e.g., your desired salary).
#2: Assess Your Shoot Days
Realistically assess how many days per year you can shoot. Consider factors such as project duration, preparation time, and post-production work.
#3: Calculate Your Costs of Doing Business (CODB)
Use a Costs of Doing Business (CODB) calculator to determine your expenses based on your desired salary and shoot days per year. Add a padding of 10%-15% to ensure profitability.
Once you have determined your commercial photography fee, incorporate it into your terms and conditions, invoice, and rate card. Make it easily accessible for future reference.
Remember, your fee is not set in stone. It can evolve over time as your skills and experience grow. Justify your fees based on the value you provide to clients and the potential for increased sales through captivating imagery.
In Conclusion
Calculating commercial photography fees requires careful consideration of various factors. By using appropriate terminology, understanding client expectations, and accurately assessing your costs and desired revenue, you can confidently set your photography fee. Remember, your expertise and creativity have value, and it is essential to be fairly compensated for your services.
Ready to take your commercial photography business to the next level? Check out our Business of Commercial Photography Course to learn how to generate $10k+ per shoot, successfully bid on projects, negotiate pricing, and more.
