Selling Digital Files Article by Doug Box

[Mark McCall]

This article appeared in this month's Texas Professional Photographer Magazine, written by my good friend, Doug Box, reproduced here with permission of Bill Hedrick, Editor, courtesy of TPPA Magazine.



Selling your Files
A Sign of the Times?
by
Doug Box

In the thirty plus years I have been in this business, there have been a
number of issues we have had to choose sides: Hasselblad vs. Mamiya,
Kodak vs. Fuji, digital vs. film, and now.. whether or not to relinquish
digital files!

But in the digital age, a lot of things have changed. There has never
been a time in our industry when the client has known so much about our
business. They have the same cameras we have (or maybe better equipment
because they have real jobs). They have computers and Photoshop. They
can go to almost any drug store, grocery store or discount store and pop
in a memory card or CD and get an 8x10 for $2 to $4. They can see the
results of their own photographic efforts instantly on the back of the
camera. Where is the magic anymore?

So back to the dilemma... can we afford to put the files in the hands of
our clients?

I remember back in the 1980’s there were companies that would copy our
photos and make wallet size photographs for our clients, especially high
school seniors. We hated those companies. We complained that our clients
would give out these off color, unretouched imposters and proclaim,
“Doug Box did my senior pictures!” While they were remembering the
beautiful images I provided for them, their friends were seeing these
“poor excuse for an image” examples. But looking back, I have to ask
myself if really was the poor quality or loss of sales that bothered me
most?

Later, the “In-Store Scanner/Printers” emerged. Fuji and Kodak both had
versions of this “Profit Eating Apparatus.” At least some photographers
thought they were eating up their profit. I doubt if WalMart felt the
same way. For some reason, Kodak got all the heat and finally came up
with a solution. Special photographic paper with a grid of small, almost
undetectable by the human eye, yellow dots, spaced about an inch apart
on a grid across the paper. These dots, when seen by the Kodak Copy
Station, would shut down the machine and stop the illegal copying.

Of course, those same images could be scanned by any other scanner or
the Fuji machine with no problem! So, my hat was off to Kodak for at
least trying, and I am sure they spent millions of dollars in the
effort. But that still was not the answer.

The real answer then and still today is to get paid for our time and
talent and not worry about the copying. Sure, PPA is spending lots of
time and money on copyright issues, helping photographers to protect
themselves. But when a client can take the small print home that you
sold them and put it on their home scanner and then print it on their
home printer, the battle is lost! Although PPA can help stop some of the
copying done at major retail outlets but they can’t control what people
do at home.
So how does the above discussion enter into the dilemma we are facing
today, in which our clients want the files? The first step in selling is
to figure out what a client wants. If we assume “the files” is what our
clients want, and we do hear that more and more from our clients, then
lets figure out why they want them.

I’m sure most photographers think it is so they can “screw us” out of
buying prints or reprints (and I am sure that is some or our clients
motivation... to save money). But I believe there are many more reasons,
such as “to preserve the images for future generations.” Whether we like
to admit it or not, a lot of photographers go out of business or lose files.

Another reason is to show their images to friends and family using some
sort of electronic means (email, on their phone, or ipod) or even to use
as a screen saver. Admit it... we photographers like to do that, too.
Other people want to use them in scrapbooks or personal albums. Then,
some of our clients believe that they own them and have a right to use
them however they want.

Many photographers feel the same way about music. I bought that CD and I
want to use it when I show a digital presentation (I almost said slide
show – that dates me). And I want to be able to play my music, which I
bought, in the camera room when clients are in there. Both are a
violation of the musical artist copyright. You may not have realized that.

So, if our customers want the files, we, as an astute business people,
need to figure out a way for them to get what they want... the digital
files... and for me to get what I want... a profitable business!

The answer is a paradigm shift. Instead of banking on selling “square
inches of “photographic paper,” in the form of 8x10’s, 16x20’s, I am
going to get paid for my time and talent.

For years, commercial photographers were paid an hourly fee for their
time and talent, charged for materials used, retouching or file
preparation and then “gave the client the files or transparencies.” How
did they do it and remain profitable? The answer is that they charged
enough for their time AND they charged for every minute they spent on
that clients project. If they spent two hours retouching the image, the
client was charged for it. If they had to run to town to pick up a
special prop or background, they charged the client for it. If they had
to rent a special piece of equipment for the job, the client paid for
that, too. Many times they had minimum time limits or they quoted “so
many hours” for a particular job.

Let’s look at a specific product... wedding reprints. What is your
average reprint sale? I am not talking about additional photos for the
bride’s album or a parent album, but reprints that other family and
friends purchase. What is your average? Let’s say it is a $400 average
per wedding. If you sold the files to the bride after the wedding for
$500, you would be ahead. That would be $100 more in gross sales and it
would all be net profit because you would not have to fulfill the order.
You would satisfy the brides that wants the files, make more profit, and
you would not be saddled with the responsibility of retaining and
safeguarding the file for the future. Everybody wins.

So, one way is to sell the files after the main order or product is
purchased. Another way is to have a sliding scale. I have used this
gambit for years with Christmas Card sales. One of my frustrations with
Christmas Cards is we didn’t make enough money on them. I was thinking,
if someone came to our studio and ordered 4x5 prints, we would charge $5
to $15 each, depending on quantity. If they went to Hallmark to buy
cards, they would pay $2-$4 each. But if they ordered Christmas Cards
from my studio, we would sell them card and print for $2 or so depending
on Stylart price list. We might sell $300-$400 in cards but really made
no real money since the markup was less than 2 times. Some clients would
only order cards and promise to order prints later.

We got tired of that! We threw away the Stylart price list and charged
$8.50 each for cards - any style, any amount, with or with out names,
(in groups of 25). It really simplified our life. Then, if they ordered
portraits at the same time we had a sliding scale for card prices down
to $2.50 each or even “free” if they ordered enough portraits. The more
portraits they ordered the less the cards cost them. We made more money!

For example: if they ordered:
less than $300 in portraits the cards were $8.50 each
$300 - $600 in portraits the cards were $6.50 each
$600 - $850 in portraits the cards were $ 4.50 each
$850 - $1100 in portraits the cards were $3.50 each
$1100 - $1350 in portraits the cards were $2.50 each
If they ordered over $1,350 they received 50 cards for free and an
additional 50 free cards for each $500 they spend on portraits.

We could do the same sliding scale for portraits. If the client only
wants small files that they can use on their ipod or as a screen saver,
we could charge a fee for that (for sake of argument) $100 to $200. As
they spend more money on portraits the price goes down in steps to
nothing (I want my clients to show off their portraits on their ipod or
as a screen saver. I get more publicity).

What about “full rez” files? There are several factors to consider here:
• the money – can we make enough money if the client receives the files
and can make their own prints? I believe if we charge enough, up front,
for our time and talent and/or for a package that includes our time,
some prints and the files, then we can make the same or more money.
• quality of prints – using the same argument as with the company making
the wallet photos (see above), the client might take the files to Sam’s
Club and make prints that are not up to my quality. Let me ask you this,
is the chance for the best quality if the client makes a print from a
file from you or if they scan a 4x5 you sold them? Hmmm. Remember, they
can scan it themselves or take a picture of a print too big for the
scanner with their digital camera.
• the loss of control over our images – just like the above argument,
they can always scan it.
Now, I am not saying that we should just give up and just “shoot and
burn” – take the photos and give them files. If you spend 8 hours on a
wedding and another 8 hours “dragging the files through Photoshop,” give
them a set of proofs and only charge $500, I am going to tell you to get
your head examined! I am saying that, in some instances, there is a way
you can make money by “giving them the files.”

What if... You live in a place that does a lot of destination weddings?
You know, when people fly in and have a wedding and leave, never to
return. You photograph the wedding and it takes you 3 to 4 hours and you
spend 2 to 3 hours working on files, and give them color-corrected files
on a DVD and you charge $2,500 and average 5 of these a week? Hmmm...
$2,500 x 5 and 40 weeks a year (doing 5 weddings a week you deserve 12
weeks off a year). Now we are talking real money, and very little
product cost. I don’t know about you, but if anyone gives me a hard time
for doing this kind of business, I’ll be laughing all the way to the bank!

What if... Your senior portrait package included a deluxe session, a
wall portrait, several 8x10’s and 5x7’s, several dozen wallet size
photographs, a set of all the images you make in a press printed book,
some senior invitations, and the digital files for a good price (for
some photographers that would be $500 and others $2000 – you determine
your price by cost of goods sold, fixed cost, etc). At one time I wanted
to include all that and a scanner in the deal because I knew they were
going to scan them anyway. At least I could make some money selling the
scanner!

Anyway, in this new world of digital photography, we are going to have
to adapt or die. My great grandfather sold buggy whips, the best buggy
whips you could buy. But when he saw his first automobile, he started
selling tires!


Doug Box is the Executive Director of Texas PPA as well
as an instructor at the Texas School of Professional Photography.
For more information, check out his website:
Welcome to Doug Box Fine Art Photography.

[TimAndrea]

great article. and amen.

[RockyPtJoe]

Thought provoking article....and only one comment?