Photographer Cost of Doing Business: Work Out Your Number

Your cost of doing business is the total you must spend in a year to operate, plus the pay you need, divided by the number of paid jobs you can deliver. That gives you a minimum price per shoot. Below that number you are working at a loss, even if bookings feel busy. Here is how to work it out step by step, with example figures you should replace with your own.

Fixed and variable costs

Split your spending into two groups.

Fixed costs are the same whether you shoot 10 jobs or 40:

• Software subscriptions (editing, accounting, studio tools)
• Website and domain
• Insurance
• Studio rent or home-office share
• Phone and internet
• Accounting and professional fees
• Memberships and licences

Variable costs rise with each job:

• Travel and parking
• Second shooter or assistant fees
• Prints, albums and packaging
• Payment processing fees charged by your provider
• Cloud storage for each job
• Props, backdrops and location fees

Example year (made-up numbers):

Variable costs for the same year might add 150 per job on average. With 30 jobs, that is 4,500.

Hidden costs people forget

Many photographers undercount because the costs are small or arrive irregularly.

• Equipment replacement: cameras and lenses wear out. If a kit costs 8,000 and lasts four years, that is 2,000 a year even if you paid for it long ago.
• Repairs and spares: batteries, cards, drives and cleaning.
• Backups: extra drives and cloud storage that keep a client's wedding safe.
• Education: courses, workshops and books.
• Unpaid time: inquiries that never book, calls, admin, travel and editing.
• Tax and retirement: money you must set aside, which differs by country.
• Slow months: costs continue even when bookings do not.
• Sick days and holidays: you only earn when you work.
• Client gifts and hospitality: small, but they add up.

Go through the last twelve months of bank and card statements. Mark each item as business and fixed or variable. Receipts always find costs your memory missed.

Dividing costs per shoot

Now divide. Use the number of paid jobs you can deliver, not the number you hope for.

Example:

• Fixed costs: 4,800 + equipment replacement 2,000 = 6,800
• Variable cost per job: 150
• Paid jobs per year: 30

Fixed cost per job = 6,800 / 30 = about 227. Add variable: 227 + 150 = 377.

That 377 is the cost of simply being able to take each job, before you pay yourself. If you shoot only 20 jobs, the fixed share per job climbs to 340, so the cost per job becomes 490. Fewer jobs means a higher required price.

Adding your salary

Your salary is a cost. If you leave it out, your pricing quietly assumes you work for free.

Pick a take-home target. Example: 30,000 a year. Add an allowance for tax and any retirement savings that your adviser recommends.

Example continued:

• Salary target: 30,000
• Per job (30 jobs): 1,000
• Cost per job: 377
• Minimum average price: 1,377

That is the lowest average booking that keeps the business and you whole. Round up so there is some room, say 1,500.

Remember that not every hour is a paid hour. If you spend 25 hours on admin, marketing and learning each week and only 15 on paid jobs, your jobs must carry the whole 40-hour week. Tax rules and rates differ widely, so ask a local adviser how to set aside money correctly.

Using the number

A minimum price per shoot has several uses.

1. Set package prices: your entry tier should never fall below it. See how to price packages for building tiers around the number.
2. Test discounts: if a discount takes a job below the minimum, it is a loss, not a deal.
3. Decide what to outsource: if your editing hours are worth more than an editor's fee, hand it off.
4. Plan growth: work out what a new hire or new camera must earn to pay for itself.
5. Check your hourly rate: the hourly rate calculator shows the same numbers from another angle.

Different niches stress different costs. Multi-day events carry crew and travel costs, which is why Indian wedding photography planning treats crew per event separately.

Keep the calculation in a simple spreadsheet and update it every six months.

Seeing profit per job

An annual average hides the jobs that cost you money. A quiet job with few edits may be very profitable, while a complicated one with two assistants, a long drive and an album might barely cover its costs.

To see this, record costs against each job: crew fees, travel, albums, editing hours. ClickBook shows collected, outstanding and overdue amounts and profit per job, so you can see which kinds of work earn their place. Take a look at the finance view in the pricing page or ask us to show you around.

Mistakes to avoid

• Leaving out your own pay.
• Counting only cash spent, not equipment replacement.
• Dividing by the jobs you hope for.
• Ignoring unpaid time.
• Calculating once and never again.

Frequently asked questions

What is the cost of doing business for a photographer?

It is everything you spend in a year to be able to take on work, from gear and software to insurance, travel and tax, divided across the shoots you do.

Should I include my salary in the cost?

Yes. Treat your own pay as a cost of running the business, otherwise your prices will only cover expenses and leave you nothing.

How often should I recalculate?

At least once a year, and whenever a big cost changes such as a new camera body, a rent increase or a new hire.

Do I include gear I already own?

Include its replacement cost spread over its useful life. Cameras and lenses wear out and need replacing.