How to proceed with this situation.

blackwaterstudio

I was contacted by a agency to do a shoot for 15 clients so they can advertise in this brochure the agency is putting out. At the time I didn't know how many they had planned on printing, so I quoted them for only 10,000 copies. Today, they call and say they are printing 50,000 copies and offer mea full page to advertise my business if I would consider lowering my price.

Now mind, you I haven't given them a price yet. I was going to charge them $600 for the entire shoot (basically works out to $40 a client)

According to OZimages this job should br priced at $1000 due to the number of copys being sold.

photodoug

what value do you put on the advertising?...discount the $1,000 price from there.

blackwaterstudio

photodoug wrote:

what value do you put on the advertising?...discount the $1,000 price from there.

Well not really sure. They will be mailing out 50,000 copys so thats atleast 50,000 people that will see my ad. They are giving me a full page and more if I want to place my own photos in.

Scott_Quier

blackwaterstudio wrote:

Well not really sure. They will be mailing out 50,000 copys so thats atleast 50,000 people that will see my ad. They are giving me a full page and more if I want to place my own photos in.

Ah, I don't think so.

Please be careful in placing a value on the advertisement. The 50,000 count mailing means they are mailing that many. There is a correlation between the number mailed and the number of eyes that actually READ it, but it is definitely not 1:1. Depending on the demographic of the addressee list, there may be some who will only use the product to line Tweety's cage.

blackwaterstudio

Scott_Quier wrote:

Ah, I don't think so.

Please be careful in placing a value on the advertisement. The 50,000 count mailing means they are mailing that many. There is a correlation between the number mailed and the number of eyes that actually READ it, but it is definitely not 1:1. Depending on the demographic of the addressee list, there may be some who will only use the product to line Tweety's cage.

Yea I realized that, some may throw it away, others may do who knows what with it. But, it gets my business out for people to see.

cmason

Scott_Quier wrote:

Ah, I don't think so.

Please be careful in placing a value on the advertisement. The 50,000 count mailing means they are mailing that many. There is a correlation between the number mailed and the number of eyes that actually READ it, but it is definitely not 1:1. Depending on the demographic of the addressee list, there may be some who will only use the product to line Tweety's cage.

Exactly. 50,000 placements that generate no additional jobs for you is worth exactly $0. If you were happy with $600, not real sure how the print count is related to your costs/profits here.

Here is how I would think of it: Lets say the market says this job is worth $1000, but you would take $600. So in effect, you are paying $400 for an ad in the publication. If you were going to pay $400 for an ad, what would help you decide to do it? Ask about the target market, the demographics (average income, education, publications read, buying habits, whatever you think correlates to your customer), the expected response rate and previous publication ad mentions (did ads in previous editions generate calls/business for other vendors, and at what rate?).

This info will help you decide if the ad is worth $400 to you. Maybe after you get this info you realize that it is being sent to 50,000 1st graders, who likley won't call to book photoshoots with you. In that case, you may decide to discount less or not at all, and you can point to their information to prove your point.

bham

blackwaterstudio wrote:

I was contacted by a agency to do a shoot for 15 clients so they can advertise in this brochure the agency is putting out. At the time I didn't know how many they had planned on printing, so I quoted them for only 10,000 copies. Today, they call and say they are printing 50,000 copies and offer mea full page to advertise my business if I would consider lowering my price.

Now mind, you I haven't given them a price yet. I was going to charge them $600 for the entire shoot (basically works out to $40 a client)

According to OZimages this job should br priced at $1000 due to the number of copys being sold.

I think I would still quote them $600. If they ask you dropped it $400 for the ad. No scratch that I think I would quote $700 and only if they ask tell them it would have been $1000 without the ad.

ballentphoto

cmason wrote:

Exactly. 50,000 placements that generate no additional jobs for you is worth exactly $0. If you were happy with $600, not real sure how the print count is related to your costs/profits here.

Here is how I would think of it: Lets say the market says this job is worth $1000, but you would take $600. So in effect, you are paying $400 for an ad in the publication. If you were going to pay $400 for an ad, what would help you decide to do it? Ask about the target market, the demographics (average income, education, publications read, buying habits, whatever you think correlates to your customer), the expected response rate and previous publication ad mentions (did ads in previous editions generate calls/business for other vendors, and at what rate?).

This info will help you decide if the ad is worth $400 to you. Maybe after you get this info you realize that it is being sent to 50,000 1st graders, who likley won't call to book photoshoots with you. In that case, you may decide to discount less or not at all, and you can point to their information to prove your point.

You also want to find out the value of placing an ad in their publication. How much do they charge to put a full page ad, along with all the demographics will let you know if the discount is even worth the discount. If they are charging $100 for the same thing then I would not discount the price by more than $100 (provided that they are your target audience)