Connect with us

Business Entrepreneur

When pricing your product, think like a photographer

(ENTREPRENEUR NEWS) On of the growing pains associated with starting your own business is knowing how much to charge for goods and services. Use these helpful tips one photographer uses for pricing a photo and get the ball rolling!

Published

on

photo

More than a thousand words

A picture may say a thousand words, but a photo doesn’t just tell a story. A simple photo can be an excellent example on how to price your next business product.

bar
Photography blogger Sarah Petty wrote her method of pricing a simple 8×10 inch photograph for as advice for her fellow photography business owners. But her advice can actually be applied beyond the world of studios and darkrooms. Here’s how to think like a photographer whenever developing the cost of your next good or service.

Step One: Know thyself (and know thy client)

Your first step in knowing your next price for your next best selling item or service is knowing what type of business you run. This is solved by answering the simple question: are you a high volume seller with lower prices or lower volume seller with higher prices?

This question can be answered by looking at your sales for the past month. Are your trends indicating your customers prefer a more personalized, boutique approach to the things they purchase from you (with higher prices), or do you move a lot of product (with lower prices)?

When you understand what type of business sales trend you’re following, move onto step two.

Step Two: Understand your sunk costs.

A sunk, or fixed cost, is the price to manufacture or deliver a good that will not change (unless reacting to the market’s inflation). What is the basic core cost of manufacturing the product you intend to put in your store? That amount, your cost of goods sold (CGOS), is the baseline from which your ultimate price will come from. Now to step three.

Step Three: Look at your other overhead for producing your product.

So you know your CGOS, so all you do now is just add what money you want to make off that? Wrong. You’re forgetting that you’re not just making that product. You are maintaining a store or electronic storefront, you’ve got office space, human resource costs, and other things that may slip by whenever you’re trying to develop your price for your next big thing. This doesn’t mean you’re charging a customer a month’s rent for consultation fee, of course, but knowing that you’re going to need a comfortable cushion whenever figuring this product’s cost out. According to the federal Small Business Administration you should allocate a portion of the profit “to each service performed or product produced” and this cost should be calculated annually. Finished, now to step four.

Step Four: Profit!

Finally, after factoring your CGOS and your overhead, now you can decide what you want to make by selling. Petty personally uses the approximation of making 4 or 5 times her CGOS plus her overhead per item. Whatever the ultimate cost is, it has to be able to lend you the ability to live comfortably in order for you to be able to manufacture more in the future.

The next time you have to develop a price for a new product, don’t forget to step into the world of photography for awhile. You’ll be saying cheese all the way to the bank.

#KnowYourPrice

Alexandra Bohannon has a Master of Public Administration degree from University of Oklahoma with a concentration in public policy. She is currently based in Oklahoma City, working as a freelance filmmaker, writer, and podcaster. Alexandra loves playing Dungeons and Dragons and is a diehard Trekkie.

Business Entrepreneur

6 simple self-care tips to keep any busy entrepreneur sane

(ENTREPRENEUR) We don’t all have time for yoga and long baths, but self-care can keep us sane and able to keep doing what we love for work – here’s how.

Published

on

entrepreneur self-care

It’s no secret that Americans are stressed. A recent study shows 3 out of 4 Americans experienced a symptom of extreme stress in the past month. Throw entrepreneurship into the mix, and you’re primed for a breakdown, or burnout at the very least. The good news? It doesn’t have to be this way.

This is why self-care is important.

The term “self-care” is nowadays often associated with skincare routines and Netflix, but in reality, it’s much more than that: It’s valuing yourself and your health enough to graciously set boundaries and say no. That way, you bring the best version of yourself to your job and relationships day after day.

I’ve started several companies, sold two, and recently started a new gig as VP of Growth & Ops for Steadfast Media (hi, guys!) while running Honey & Vinegar, so it’s safe to say I’ve been one tired woman. There were times I was tired, frustrated, and honestly burnt out. At one point, I took a sabbatical for several months at the urging of several mentors, family members, and my career coach. Burnout is real, but I’ve learned ways to cultivate self-care in my professional life that allows me to have a somewhat balanced life.

(Side note: I understand there are situations out of one’s control that can contribute to burnout, including ailing family members, parenting, disabilities, etc. This article is not focused necessarily on these, rather preventing your professional life becoming your entire life. That way, you can focus on the truly important things.)

Here’s what I’ve learned about self-care thus far (mostly the hard way):

1. Set strict boundaries & turn off notifications.

The best advice I ever received was a one-off realization from my brother: gate it, don’t date it.

Meaning that if you have emails, Slack, or Trello on your phone, don’t make it available to where you check it at all times of day and night. Force a gate between you and the app. Put the app in another folder to where you don’t check it 24/7. Don’t let the notifications own you, or straight up disable them.

If you’re the boss, you get to set the standards. Check Slack and emails during certain times, and be as specific as possible when setting those times. If there’s a true emergency, have employees then call or text. Set those boundaries and stick to them. Encourage your employees to stick to them with one another, too.

2. Have friends and a life outside of your industry.

I can’t emphasize this enough, and this is also why I’ve only lived in cities that emphasize one industry. (DC and LA people, I don’t know how you do it! Props to you.)

This allows you to create a life beyond just your professional life.

When it seems like the sky is falling — i.e. you don’t get that round of funding, or that one client flips out, it’s important to have people around you who are a) grounded b) can give you perspective. Compatriots in your respective industry are helpful for support and sounding boards, but it’s easy to b

When an acquisition deal for a past company fell through, I felt like my world was over. I was devastated. My darling friends, one in healthcare and another in real estate, took me to Chuy’s happy hour and gave me perspective. Relationships like these are game-changers.

3. Schedule time for yourself.

Set time aside for yourself, but get real: What does this mean practically in your day to day, week to week life? For me, I purposefully make sure to keep one night a week, ideally two, to rest at home with my husband.

Also, plan that damn vacation! It doesn’t have to be a lavish European vacation, but set aside time where you are intentionally not checking your phone or emails.

When I took my first actual vacation (and not working remotely) in years, It was life-changing. Be intentional to take more than two days to think, journal, set aside goals not just professionally, but what you want you life to look like that following quarter. You, your company, and the people will be a lot better for it, I promise.

4. Cultivate healthy habits that are enjoyable.

Don’t let the hustle culture get to you. Hard work is important, but so is exercise, eating healthy, and maintaining mental health. In other words, some legit self-care.

Some good thoughts from VC Harry Stebbings.

Set routines of things you love to do that also maintain your well-being. I love going to the gym and putting my phone on Do Not Disturb for 30 minutes, but that’s not for everyone. Take your dog on a walk, put on a playlist to cook a good meal, go to that yoga class. Or just go on a walk with a friend. You do you, boo.

This could be you.

5. Train other people to do your job.

You may think you’re the only person that can do a number of things at your job. If you want your company to ever scale, you need, I repeat, need to take those tedious tasks off your list, and even some larger projects off your hands.

I know it’s so hard to relinquish control, but *gasp* there might be people that can do parts of your job better than you. So let them!

Does this mean you need to hire a virtual assistant, a COO, find another co-founder, or just hire that dang accountant? Do it.

Your business is only going to succeed if you’re performing as the best version of yourself, not a stressed-out shell of yourself. If you need to micromanage everything, your business won’t succeed or be sustainable long-term. Don’t let your stress about doing everything stunt your company or personal growth. If you needed a sign, this is it.

6. Practice self-awareness.

There is nothing more valuable than the gift of self-awareness.

Listen to your body and what it’s telling you. Does it need water? Does it need sleep? Start a habit of journaling and seeing what areas where you’re running on empty. More than that — do what your body tells you. Drink that water, my friend!

The takeaway:

All in all, life is more than work and who we are is more important than what we do. Take time for self-care, and you’ll have a healthier mind and body.

Continue Reading

Business Entrepreneur

Performance improvement through self-talk

(ENTREPRENEUR) Speaking to others can be scary, but speaking to yourself is normal and can actually improve your speech performance overall

Published

on

Performance mirror

Do you talk to yourself? Don’t worry, this is a no-judgment zone. I probably talk to myself more than I talk to other people – especially when considering the inner monologue.

I once read that people who talk to themselves are likely to be more intelligent. Whether or not this is factual I don’t know, but I do know that it’s important that you’re smart about the way you talk to yourself.

I’m a fairly self-deprecating person, so when I’m talking to myself about myself, it’s usually some sort of insult. About a year or so ago, I realized how often I was doing this, and made a conscious effort to be a little bit nicer. In that time, my mood has been a bit more positive.

This experience fits well into the research efforts of psychologist Ethan Kross who has examined the differences in life success based off of how people talk to themselves. “Talk to yourself with the pronoun I, for instance, and you’re likely to fluster and perform poorly in stressful circumstances,” said Kross. “Address yourself by your name and your chances of acing a host of tasks, from speech making to self-advocacy, suddenly soar.”

This can be simplified as, talk to yourself the way you would (or maybe, should) talk to someone else, and respond in the way you would want them to respond. Treat with kindness, receive kindness back – as a result, things are more cohesive, copacetic, and successful.

After working with participants in his study, Kross found a number of performance benefits to this self-talk method, including: better performance, higher well-being, and greater wisdom.

With better performance, judges were used to listen to five-minute speeches prepared by participants about why they should be hired for their dream job. Half of the participants used “I” statements, while the other half referred to themselves by their own name. The judges found that the latter half performed better, and were found to have experienced less depression and felt less shame.

With higher well-being, Jason Moser, a neuroscientist and clinical psychologist, measured electrical activity in the brain during participants’ usage of the different types of self-talk. During stressful situations, those who used their names instead of personal pronouns were found to have a significant decrease in anxiety levels, which positively correlated with a major decrease in energy use by the frontal lobe (talk about a win, win!)

With greater wisdom, the research found that people who use their names instead of pronouns are able to think things through more wisely and more rational and balanced way. “The psychologically distanced perspective allowed people to transcend their egocentric viewpoints and take the big picture into account,” Kross said of this piece of the research.

Well, Taylor is now ready to wrap up this article, and she hopes that you’ll give name-first self-talk a try, as The American Genius only wants what is best for their readers! Additionally, encourage people around you and those on your team to give this self-talk, first name idea a try – circle back after a week of trying it and share the results.

Continue Reading

Business Entrepreneur

How freelancers can keep the peace with difficult clients

(ENTREPRENEUR) Freelancers are in a tight spot – keeping customers happy pays the bills, even when they’re impossibly difficult. Let’s discuss how to overcome this tremendous challenge.

Published

on

designer freelancers clients

Freelancers have a myriad of benefits, but one distinct drawback is that there isn’t always a team to back you up if you find yourself working with a particularly nasty client. It’s especially important to keep clients — no matter how insufferable they may be — in good moods, so here are a few tips on keeping the peace with your most annoying customers.

It’s worth noting that you can often mitigate a large amount of potential misunderstandings — and thus, nastiness — by being clear with your intentions, terms, and rules up front and over-communicating at all times. A common issue for beginning freelancers is a tendency to settle on less-than-optimal terms for fear of losing a potential customer. A piece of advice – if they’re not willing to pay you what you’re worth now, they never will be.

It also helps to keep in mind that most obstinate clients are simply control-freaks who have found themselves outside of their comfort zones. Knowing that you aren’t dealing with inherently bad people can be the difference between snapping and having more patience.

Once you’ve established that your client is causing you substantial enough discomfort that their behavior is no longer acceptable, your first step should be to communicate to them the specifics of your problem. If possible, do this in writing – promises made via email tend to reinforce accountability better than phone calls.

Freelancers should also avoid using any additional stipulations or rewards for getting clients to cooperate. As long as they’re the one failing to hold up their end of the bargain, they should be the one to pick up the slack — don’t do their work for them (or, if you do, make sure you charge them for it).

Again, the majority of client-freelancer issues can be boiled down to miscommunication and shaky terms, so address all issues as quickly as possible to avoid similar problems in the future. And as previously stated, over-communicate at all times.

Of course, keeping the peace is only viable up to a certain point of abuse.

If your client doesn’t pay you by the agreed-upon due date, continuously disrespects you and/or your team, or keeps changing the terms of your agreement, you reserve the right to set the client straight, threaten to take them to small-claims court, or — if you haven’t initiated the work for your end of the deal — terminate the contract.

Remember, freelancers don’t owe inconsiderate customers the time of day, and for every non-paying customer with whom you waste your time, you’re missing out on a paid, legitimate opportunity.

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!