An Orange County Photography Business Needs to Move Towards Volume or High Margins

Business Articles | July 24, 2009

Photographers throughout Orange County - Newport Beach, Laguna Beach, Huntington Beach, Costa Mesa and Anaheim need to make a choice in order to keep growing: Move towards higher volumne or higher margins.

The photography industry is extremely competitive. In order to succeed, an OC wedding photographer needs to decide on a clear strategy for growth. While there are many factors to take into account when determining a growth model, one variable that needs to be decided is to address whether revenues will increase in a model of high volume lower margins or higher margins and higher prices.

Generally, as the number of sessions a photography business completes in a year increases, the profit margins slip. This is simply because as the number of sessions increase, so do the expenses. When a relatively few number of sessions are booked, a photographer can usually work from her home. When the sessions increase to the point she needs to hire another photographer, not only does she now have the added expense of a paying photographer, she will also likely need to have a studio from which her employee can work.

These added expenses can have a drastic effect on profits. Whereas with small volume, a sole photographer can usually keep profits between 70-80 percent of revenue, after the cost of an associate photographer and studio are added into the mix, profits usually drop to between 40-50 percent of revenue.

Thus, photography business owners have a choice. Seek to expand the number of sessions completed in a year or increase quality and move up the price ladder. The benefit of the first option is a lower limit on the amount of money that can be earned. The owner can always hire more photographers as the business expands. The benefit of the second option is the photographer has an opportunity to spend more time on the creation of high end art. This is usually a huge quality of life benefit for those who entered the industry in the first place because they love the creative process.

The decision on which way an Orange County photographer should grow will largely depend on which part of a photography business he wants to emphasis. If he wants to emphasize "business" then the first growth options will probably fit best. If he want’s to emphasize "photography" then the second option is probably the best.

Article Tags: Photography Business

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ABOUT THE AUTHOR

After beginning her practice in Murrieta, Vanessa started an office in Newport Beach and became an Orange County Photographer. She expanded her services to Laguna Beach, Huntington Beach, Irvinee, Dana Point and San Diego.

Vanessa now works as a Laguna Beach Family Portrait Photographer. She also teaches classes on technique and business practices to other OC Wedding Photographers.