Real Estate Photography Building Blocks: Market Analysis – Pricing Strategy
For this Building Blocks episode I’m referring to the pricing and profit worksheet that we use with our
new iGUIDE Pros. There are five sections to our pricing and profit worksheet: our pricing and profit
summary, labor costs, service costs, hardware costs, and lastly, business targets.
To start I ask a few simple questions:
- What do you charge for a 2500 square-foot home photo package? How many photos included?
- How much time does your photographer spend traveling? Time spent shooting?
- How much time is spent completing the job
For the iGUIDE labor section we have a benchmark of 30 minutes shoot time and ten minutes post-production time. Travel is already covered with the photography and you should have little to no editing time for your typical properties.
Here I add in the iGUIDE processing fees, the photo editing costs, and any other direct costs like booking, scheduling, and invoicing.
With all this information you can analyze the pricing program. Look at the photo package(s) first. Does the photographer compensation look attractive? Could I get entertain good photographers for this amount of money? If not, I start to adjust the compensation percentage until the dollars make more sense.
Then I look at the gross margin. Am I within the range of typical service companies? Once I’ve done that, I go back and I look at my competitions pricing: am I competitive with the businesses who have the clients that I want? If not, I start to play with my numbers until I have a package price that I can win business with, and margins I can be happy with.
Then I go back and I look at my competitions pricing for similar services. If my prices are lower or significantly lower, right away, I’m happy because I’m hitting my profit dollar and margin goals.
I want to find out what profit goals you have and then I translate that into iGUIDE tours to see if this is achievable. Whether you’re just starting your real estate photography business or you’ve been at it for a while, a pricing and profit analysis is a great process to go through.
Download the pricing and profit worksheet below. There’s no doubt that this information can help make you more successful.