Small business owners (like photographers) constantly find themselves taking measure of their pricing, how that pricing compares to their competitors, and how their pricing may help get (or lose) clients. If they price too high, they run the risk of pricing themselves out of the market. If they set their rates too low, they run the risk of (a) undervaluing themselves and their work and (b) setting themselves up for a potential race to the bottom for clients that are shopping on price only and not on the experience and the memories that the resulting photographs will create for them and their families and/or careers.
Like any other small business owner, photographers have certain business expenses (insurance, rentals, equipment, taxes, etc) that they must cover in order to stay in business. They also have to pay themselves a salary, invest for the future, and (hopefully) make some profit that can be used to either improve their standard of living or be reinvested back into the business in order to explore new markets and develop new products and services. Photographers MUST cover these costs in order keep their businesses viable. Going lower is not a sustainable approach for any business – including those that offer photographic services.
Potential clients should remember these realities as they’re shopping for photography services and take them into consideration when comparing rates. I would argue that cost is just one (and not even the most important) consideration when you’re considering hiring a photographer.
There are three basic approaches that headshot photographers will take when it comes to group pricing here in Los Angeles. The photographer will ask some basic questions that will include, but may not be limited to, the number of people to be photographed, where the shoot will take place, and how much time will he/she have overall to shoot that x number of people. Once that information is gathered, the photographer will likely take one of the following pricing approaches.
Again … this is for group pricing (think multiple headshots for a corporate client). One disclaimer: the figures listed below for the first two approaches are notional only. I have not conducted a survey of local headshot photographers to come up with these figures.
Per Head Rate (a.k.a. Flat Rate)
This approach is fairly simple. As an example, a photographer may say that he/she will photograph five people for $400 each, ten people for $250 per person, or twenty people for $150 per person. The sliding scale is based on a number of things - the least of which is the time required to set up and tear down for each corporate client. Once you’ve set up and are ready to shoot, you can achieve some economies of scale by shooting more people for less $$$ per person since you’re already set up for that 20th or 30th person.
Day Rate + Per Person Fees
Photographers using this approach will charge a day rate just to come to your location. That day rate might be $1,000 for a full day’s work photographing your staff. In addition to that flat day rate, they will also charge an additional $200 per person (again … these are sample numbers only).
I don’t use either of these approaches. I find them cumbersome, inefficient, and believe that they don’t offer as much value to my clients as a pricing approach like the Lehman Scale.
The Lehman Scale
The pricing approach that I use is something called the Lehman scale which is used extensively by financial professionals to determine the commission on investment banking or other business brokering services. My sense is that it is fair to both me and the client in that it pays me a fair wage while getting progressively cheaper as the client adds people. It makes sense for me to charge progressively less as additional people are added since I’m already on site, I’ve already set up my equipment, and it’s more efficient for me to work (and to price) this way.
Here’s what I’m charging for group (i.e. corporate) headshots as of April 2024:
First person: $250.00
Next Four People: $200 per person
Next Three People: $150 per person
Next Four People: $100 per person
Each Additional Person Above 12: $75 per person
So … using the above schedule, a three-person headshot session would be $650, a six-person shoot would be priced at $1,200, and a twelve-person shoot would be $1,900. Unlike many of my competitors, I ONLY charge for the session, and DON’T tack on additional charges for each photo you buy and then I edit and deliver. Expenses are occasionally required. They’re mainly limited to occasional rental equipment (this RARELY happens) and any travel expenses. These expenses … and the above costs … would be telegraphed well in advance with the client and would be included in all contract discussions and deliverables. Lastly, my contract grants you the license to use your photos however you like, for as long as you like.
Does your staff need new headshots? If so, call me at 310.614.5119 and let’s discuss specifics.