Photographers Can Lower Expenses to Increase Profits

[Heather Perry]

During difficult economic times photography businesses are made more
competitive because they are forced to cut waste and focus their
resources on those activities which produce the largest return on
investments.
A photography industry can increase profits during an economic
downturn by lowering expenses. The following is a list of suggestions
professional photographers can use to lower their operating expenses.
1. If a photographer is renting a studio, he can seek a renegotiation
of the rental terms. During difficult economic times commercial real
estate is one of the first areas to endure price declines. This can be
a boon for renters. You may first ask for rent reduction. If it is not
given, see what people signing new leases are paying. If you are
paying substantially more than they, you may need to threaten to
leave.
2. Be willing to share a studio with another photographer. If your
bookings are down see if you can share studio space with another
photographer. This will reduce rent and utilities. In addition - if
your serve different markets (one of you photographs weddings the
other senior portraits) you may be able to share receptionists and
marketing efforts.
3. Look for a printing lab that has lower prices. During a recession
you may find it necessary to lower prices. The good news is that your
suppliers are likely finding it necessary to lower prices as well. The
printing industry has become increasingly competitive. If you have not
comparison priced over the past few years, you may be able to find a
lab that offers similar results at a 30% reduction compared to what
you are currently paying. This will substantially help you profit
margins. As a result, you may be able to maintain your current profits
even while offering lower prices.
4. Perform an audit of the repeat services you are being billed for
and eliminate those which are no longer needed. For example, have you
found that you are paying for an email newsletter service but are no
longer using it? That might be a good service to ax. Are their
magazine subscriptions you are paying for which you could read online?
That might be another place to save some money. Ask your employees how
to cut costs or make systems more efficient. They are closest to the
action and will likely have a number of ideas which can be
implemented.
A photography business that focuses on streamlining during a recession
will be in a terrific position to expand when the economy recovers.