One of the hardest things to do as you start your business is setting your prices. I have outlined a simple formula to break down and then come up with those illusive hard numbers.

But before we get into numbers... I think there are two important factors aside from numerical value: 1) You are comfortable with what you charge, because you are giving your customer a fair price for the service you provide. 2) You are happy with what you charge, because you feel fairly compensated for your time and experience.
A few other things to consider:
You can always grow. It looks a lot better to increase your prices than having to decrease them.
Consider the market you are in and what photographers are charging on average. You don't need to base your prices off of that, but if your prices are significantly higher or lower you might want to re assess.


Now we'll get started and walk through some example numbers.

1. Determine How Much You Want To Be Paid An Hour

Minimum wage is $7.25 in the United States. We can assume you want to make more than that, as you have a skill you have developed and invested time and money into. BUT, people also pay for experience, and just starting out, you only have so much of that.

$10-15 Portfolio Building Stage: You have decent photography skills, but you need to take more pictures of people to develop your portfolio and practice.
$15-25 Stabilization Stage: You have your portfolio now, and you can deliver a good set of images each time without holding your breath.
$25- Experienced Stage: You have a very consistent and cohesive style, you have learned to work very well in different lighting situations, and you have a lot of shoots under your belt.
$50+ Professional Stage: You can shoot in your sleep, you make people feel very comfortable in front of the camera, you work efficiently and it doesn't take you long to get the shot you want no matter the situation.

These aren't perfect numbers, but they can be used as a helpful guideline to personally assess your experience and what your time as a photographer is worth.


2. Calculate Your Time 
For numbers sake, let's say you've got a decent portfolio, and you have some experience, so you settle on $15 an hour.

Shooting: 1 Hour
Traveling: 30 Minutes
Editing: 2 Hours
Communicating: 30 Minutes

Total: 4 Hours x 15 = $60 Base Cost

This is your base price. Next, you need to figure out what your business expenses are, AND the time you spend on keeping your business running.


3. Calculate Your Cost of Doing Business

Hours Working on Business a Month: 16 (x $15 (an hour) = $240)
Business Expenses* a Month: $25

Total: $265
Now decide your goal number of clients you want to book to cover your time and expenses.

Ideal Client Number: 4
Divided by Total: = 265/4 = $66.25 Business Cost



In Summary: Base Cost + Business Cost = $126.25


*Business Expenses--At the beginning you may not have a bunch of expenses as you are trying to get your footing, but here are some examples.
Website Hosting
Business Cards
Food out With Clients
Shipping and Mailing Supplies
Business Insurance
Legal Fees
Advertising Fees


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