
Many years ago I took a small business class and even though I didn’t go into business, there were a number of valuable lessons that I learned. One section was pricing and value. The trick was to find the right price point where you could sell your product continuously, provide a good value for the public, and make a profit at the same time. If you price the item too high, you could make a large profit, assuming that anyone would buy it, too low, and you’d sell a lot of product, but not make enough money to cover expenses. Either way, you’d be out of business.
I was reading Joe McNally’s blog and this paragraph caught my eye:
I attempt to be coherent, and thoughtful, though it’s hard. When you hear about a recent cover of Time magazine being bought off Istock for $30, it’s easy to just think about reaching for the sawed off and giving them sumbitches what for. But this whole numbing process has been going on for so long it would be difficult to sort out the most deserving sumbitches, and truth be told, some of them be us.
Before I continue, you have to understand that Joe has a great sense of humor and his posts are often informative, but certainly always have a touch or more of humor in them. That’s one of the reasons that I read it. I usually get a laugh and who couldn’t use one of those every day!
So, back to business, markets, and such. I did a quick Google to find out about Time’s $30 purchase and found that it was true. They purchased the photo from IStock for $30. Now, the irony of this purchase was not lost on me. The label that was added to the jar of coins says: The New Frugality. The article featured on the cover was about how the recession has changed what we value and what we expect–even after the economy recovers.
When the photographer, Robert Lam, mentioned that he had gotten one of his photos on the cover of Time, most people where supportive … that is, until someone asked how much he got paid. When he mentioned that Time had paid only $30, then the support seemed to dwindle. Some thought that he got ‘screwed’, others thought that it was ‘terribly depressing’ that Time, a multi-billion dollar company only paid $30. In general, it seemed that some thought that he should get paid in the $10,000 range, just because of Time’s ability to pay. For most other things, the market doesn’t work like this, only taxes work like this … the more you make, the more they take! I pay the same amount for an automobile whether I make $5,000/year, $200,000/year, or $1,000,000/year. I may be able to purchase a more expensive automobile, but no one asks to see my income before I see the price!
I’ve seen this sentiment in numerous places about how photographers shouldn’t sell their work for such cheap prices and about how businesses like IStock are hurting photographers’ ability to make a living, etc. Perhaps photography books should cost several hundred dollars each because they hurt the teaching/workshop market!
I remember similar stories from the post office about how the Internet was hurting their business; however, they still survive, though postal rates are climbing more frequently. They had to make changes, streamline, and compete with the Internet, UPS, and FedEx. They aren’t the only game in town anymore. They had to find new ideas and new ways to earn money.
Pricing needn’t be emotional. Sure, we may think that our photos are worth more, but that’s only because of our own attachment, ego, and desires. In the end, a photo, or anything is worth what the market will pay. No more. No less.
What do you think?








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