Print credit vs coupons, etc. Need some insight.

ColoradoSkier

At the Denver SMUG Tuesday, it was mentioned that print credits can be a powerful tool, more so than coupons in some cases. Would anyone with experience in this area be willing to share their story, good or bad, about how these work, from a practical standpoint? I don't do many portraits (I see the benefits there), but am trying to determine if these would help with landscape sales.

TIA.

jmphotocraft

Yeah, I can't quite get my head around print credits. I can see using them as a gift or as a reward for someone who gave you a referral. But otherwise for a print credit to be profitable it seems to me that you would have to sell it. For example, charge $40 for a $50 print credit. That means you are handling money yourself, which will create significantly more work in a high volume situation like shooting a whole sports league. This somewhat defeats the model of using SM as your point-of-sale system. I'd rather just do a coupon for $10 off an order of $50 or more.

So yeah, I second the question.

takeflightphoto

jmphotocraft wrote:

Yeah, I can't quite get my head around print credits. I can see using them as a gift or as a reward for someone who gave you a referral. But otherwise for a print credit to be profitable it seems to me that you would have to sell it. For example, charge $40 for a $50 print credit. That means you are handling money yourself, which will create significantly more work in a high volume situation like shooting a whole sports league. This somewhat defeats the model of using SM as your point-of-sale system. I'd rather just do a coupon for $10 off an order of $50 or more.

So yeah, I second the question.

Here's how a print credit can work. (Using very round numbers for illustration purposes)
I shoot a wedding for $1000 and I'm paid cash up front.
I give the couple a print credit of $1000.
They shop for prints and use the $1000 against the retail prices on my site.
I have marked things up from $1 base price to $10 retail.
They buy 100 prints at $10. I pay $1, plus 15% of the $9 profit ($1.35) to SmugMug for each print.
100 times $2.35 = $235.00
My net on the job is $765.00. Of course, a good portion of that is for my time, but the couple has paid me $1000 and sees $1000 in product arrive at their doorstep.


Just for kicks and giggles, here's how it would work out with Bay Lustre 8x10's that I would sell for $20.00.
Cost = $3.23, Retail = $20.00.
They buy 50 prints with the $1000 credit
$20.00 - $3.23 = $16.77 x 15% = $2.52
$3.23 + $2.52 = $5.75 x 50 = $287.50
My net is $712.50

My net could change by giving a smaller print credit, or by marking my prints up more or less.

jmphotocraft

takeflightphoto wrote:

Here's how a print credit can work. (Using very round numbers for illustration purposes)
I shoot a wedding for $1000 and I'm paid cash up front.
I give the couple a print credit of $1000.
They shop for prints and use the $1000 against the retail prices on my site.
I have marked things up from $1 base price to $10 retail.
They buy 100 prints at $10. I pay $1, plus 15% of the $9 profit ($1.35) to SmugMug for each print.
100 times $2.35 = $235.00
My net on the job is $765.00. Of course, a good portion of that is for my time, but the couple has paid me $1000 and sees $1000 in product arrive at their doorstep.

I understand and appreciate your example, but you're talking about a 1000% markup there. What if your couple buys several expensive items like wrapped canvases that you've only marked up say 50%? Your take will be considerably smaller.

I shoot senior portraits for $250. I give my clients one 8x10, two 5x7, 16 wallets and a CD of all the keeper images from the shoot. That's like $50 worth of prints at my retail prices. I think it would be very strange to charge someone $250 and then turn around and give them a $50 print credit.

takeflightphoto

jmphotocraft wrote:

I understand and appreciate your example, but you're talking about a 1000% markup there. What if your couple buys several expensive items like wrapped canvases that you've only marked up say 50%? Your take will be considerably smaller.

I shoot senior portraits for $250. I give my clients one 8x10, two 5x7, 16 wallets and a CD of all the keeper images from the shoot. That's like $50 worth of prints at my retail prices. I think it would be very strange to charge someone $250 and then turn around and give them a $50 print credit.

It's all in how you value YOUR part of the product.

The 8x10 is going to cost you or me $3.23 whether its crap or a Van Gogh. The retail price that the customer pays is the value that you or I put on it, over and above the $3.23.

What you are giving them for their $250 is $200 worth of your time and creativity and $50 worth of product (not withstanding handing them the CD that they can make their own prints from, but that's another thread). You are saying to them, "You give me $250, and we'll spend an hour shooting and then I'll spend three hours editing and retouching, which is all worth $200. Then you can choose $50 in product."

I'm giving them $1000 worth of product of their choice and pricing my product so my time and creativity are paid for. I happen to wrap my creativity and time into the markup. I don't mark up gallery wraps the same percentage as paper prints, but there are enough dollars in there to cover the time and creativity. I'm saying to them, "You give me $1000, I'll spend a few hours at your wedding, several hours retouching and preparing them, and you'll get $1000 worth of photographs of your choice."

I could cut my product prices in half or more, and then say $500 (or $750) shooting fee, and a $500 (or $250) print credit. At the end of the day, my couple has paid me $1000, regardless...and their photos are worth $1000.

...and your seniors have paid you $250...those pictures that your seniors get are worth $250, not $50.

Two ways of getting the dollars into our respective pockets. Neither is more right than the other. And hopefully your seniors are happy and my couples are happy.

tlphotos

jmphotocraft wrote:

I understand and appreciate your example, but you're talking about a 1000% markup there. What if your couple buys several expensive items like wrapped canvases that you've only marked up say 50%? Your take will be considerably smaller.

I shoot senior portraits for $250. I give my clients one 8x10, two 5x7, 16 wallets and a CD of all the keeper images from the shoot. That's like $50 worth of prints at my retail prices. I think it would be very strange to charge someone $250 and then turn around and give them a $50 print credit.

I do not think that is weird at all, I think it is a great alternative to being bound to a "package." For those that want something other than your typical prints as mentioned above (maybe they want all 5x7 and no wallets) and having to negotiate to their wants - especially when they may change their mind as to what they want later, you give them a print credit and they go order exactly what they want - and maybe even go a litlle over for a little more $$$ for you.

ColoradoSkier

Thanks for the example. This helps. All in all it is just another marketing tool really. But I would love to hear some more examples.

MadisonPhotography

Print credits for events
I'd love to be able to use the print credits at sporting event photography. We shoot a lot of swim meets and want to have people pre-register their kids for a nominal fee, say $15. I'd like to apply this towards a purchase of the same amount but not less.

Not sure how to implement this or have people pay to register...

ColoradoSkier wrote:

Thanks for the example. This helps. All in all it is just another marketing tool really. But I would love to hear some more examples.

ColoradoSkier

MadisonPhotography wrote:

I'd love to be able to use the print credits at sporting event photography. We shoot a lot of swim meets and want to have people pre-register their kids for a nominal fee, say $15. I'd like to apply this towards a purchase of the same amount but not less.

Not sure how to implement this or have people pay to register...

I like that idea too. I'd send them the credit code via email after you get that info from them. Also helps build your list.

My first print credit experiment is a $50 credit being given to a random fan of my Facebook page. Started with 17 fans (haven't done anything on the page really), so I'll be able to see what kind of draw it is. Have had 3 sign up in the first 10 mins of the offer, which I posted on FB from my personal account, and also on Twitter. I'll probably put something on tomorrow's blog entry too.

If curious, the FB page is at http://www.facebook.com/?ref=home#/pages/Lakewood-CO/Chester-Bullock-Photography/107672705124?ref=nf

Mox

Oh, I like that idea!

ColoradoSkier

I just wrapped up a product shoot for someone. I am throwing in a $25 print credit (in the form of a gift certificate) to the lady I did the shoot for. Be interesting to see if she takes advantage of it.