 Originally published as Chapter 7, Negotiating Stock Photography Fees in the book titled The Photographer’s Guide to Negotiating , Allworth Press, NY ISBN 1-58115414-3
Exceptions to the Rule
There are times when stock pricing systems fall short of the mark. You
will have to be observant and contemplative to find them, so you don’t
sell your stock at bargain prices or at prices that are unrealistic for
the buyer. Two different stock usage scenarios are described below. As
you read them, you will see that—according to the rules—one photograph
is clearly worth more than the other. After you read subsequent
paragraphs, you will understand how the system can lead you astray.
Scenario One
The buyer represents an international credit-card company. The company
wants to license an image of a typical businessman checking in at a
hotel registration desk. The image will be used on the front panel of a
tri-folded 8.5” x 11” brochure containing a credit-card application.
The image will cover most of the front panel. The press run will be
five million copies to be distributed worldwide in five languages.
Considering the stock pricing factors, this sale should warrant high
price. You quote a price of $5,000.
Scenario Two
A manufacturer of a particular type of valve used in submarines to
control the sub’s dive rate and angle calls you. You have photographed
that part of a submarine’s control panel for the Navy, and since it is
an unusual shot you placed it on your Web site. In this case, the
picture is going to be used in a five color, slick 8”x 8” brochure, at
a full page on the cover. Then you learn that the press run will be
only 100 copies, because there are only a half-dozen companies
worldwide that manufacture submarines—few navies have them or can
afford them. They are printing 100 copies because they want a two-year
supply that will be sent to all the higher-up engineers and designers
in the six companies. With such a small press run, the use appears to
be miniscule compared to the credit-card sale. You quote a price of
$500—double the price recommended in pricing software—because you have
one of the few pictures of that valve in a submarine, so you know you
have little competition.
The Surprise
The credit card company buys refuses your price and licenses from
another very savvy photographer for $2,000. The valve company takes
your offer without hesitation, making you feel like they perceive they
got a bargain. What happened?
You did not consider the real value of the images to the buyers. The
credit card company was creating a throw-away pamphlet, used in counter
displays. People pick them up and throw them away a day later, or use
them to write phone messages on. Maybe one percent of them get sent in
as applications for a card. The application is not worth a lot of
money. It never convinces anyone to apply for a card. It is just
distributed to make it easy to apply, if something else makes you
decide to apply. Why would the company spend a lot of money for that
kind of end use? There is no good reason to do it.
On the other hand, the valve company’s brochure is the only way it can
show its product to the engineers and designers. The valve is a
critical piece of hardware, because if it malfunctions the sub might
dive below its crush depth. Your photo is proof of the fact that the
U.S. Navy uses it, and that visual endorsement is as good as a written
one. Your picture is a main element in the company’s sales effort.
Without it, the valve company might not convince anyone to buy their
product over another manufacturer’s. On top of that, you forgot to
research how much each valve costs. If you had, you would have realized
that anyone selling a single valve with a price tag of $210,000 must
have a very unique and important product.
If you had priced the credit card sale at $2000 and the valve sale at
$5000, you would have made both sales. There are exceptions to every
rule. You just have to look hard for them, and doing so can put extra
money in your bank account.
Find the Exceptions
Most stock sales are routine, but as the example above indicates, some
can be exceptional when the pricing doesn’t conform to the traditional
rationale of stock photography pricing. You have to be on the lookout
for these exceptions to the rule. When considering pricing stock, you
should take time to ask questions about the end user and use. Then you
should reflect on the answers. If you have time or can postpone giving
an immediate price, take time to look the end user up on the Internet.
Get a feel for what they do and how big the company is. Try to get a
fix on the size and nature of the customer base for the specific
product line the stock photograph will be used to promote. There is a
positive correlation between the size of a company and the size and
nature of its customer base. There is no hard-and-fast rule for
determining the pricing levels for the differences in the relationship
between size of company and size of customer base. However, when you
reflect on the information, you might see a level of dependency on
successful promotion of a single service or product. Just as in the
example of the valve manufacturer, above, some small companies will pay
dearly for the right image, because part of their future is riding on
the success of the promotion containing that image.
Go to part 3
(c) 2005 Richard Weisgrau [contact] [bio] |
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