Cost-based pricing and COGS target

#554 Jeff Poole is a professional photographer who transitioned from a career as a paramedic to running a highly successful photography business. Jeff recounts how photography became pivotal in his life following the birth of his first child and the supportive push from family that set him on a path to transform a hobby into a profitable venture. The episode emphasizes the necessity of proper pricing and marketing strategies in photography, particularly highlighting the struggles of starting out with competitive pricing that fails to be profitable in the long run.

KEY TOPICS COVERED

1. Pricing and Profitability - Jeff shares the importance of pricing your services based on cost rather than competitors. He details the concept of cost-based pricing, aiming for 10-12% cost of goods to ensure profitability.
2. Sales Systems - The importance of having a sales system to achieve desired average sales figures. Jeff discusses packaging strategies and the role of creating attractive, profitable packages.
3. Marketing Strategies - Emphasis on building an email list using lead magnets and nurturing sequences as a form of marketing. Jeff explains how to keep a consistent flow of communication with potential clients, turning inquiries into bookings.

IMPORTANT DEFINITIONS & CONCEPTS

• Cost-Based Pricing: Pricing products based on production costs, ensuring a profit margin that supports business sustainability.
• Nurture Sequence: A series of automated emails sent to potential clients to build a relationship and guide them towards a purchase.

DISCUSSION & REFLECTION QUESTIONS

1. How has your understanding of pricing evolved after listening to Jeff’s insights on cost-based vs competitor-based pricing?
2. What are some practical ways you can implement email marketing in your photography business today?

RESOURCES:
Visit Jeff Poole's Website - https://indigosilverstudio.com/
Check out Jeff's Education Platform - https://myphotoinsight.com/
Grow your business with HighLevel - https://www.gohighlevel.com/
Start using Kit for your email marketing today - https://kit.com/

Grab your free 52 Lightroom Presets at
http://freephotographypresets.com/

Connect with Raymond!

• Go from Confused to Confident behind the camera with The Ultimate Photography Education Bundle - https://beginnerphotopod.com/bundle
• Join the free Beginner Photography Podcast Community at https://beginnerphotopod.com/group
• Grab your free camera setting cheatsheet - https://perfectcamerasettings.com/

Thanks for listening & keep shooting!