Wednesday, October 3, 2007

Don't Spend Your Customers Money

One of my marketing newsletter subscribers is having trouble with sales in her photo business because she lives in a depressed, rural area and her customers say they have no money. Here is the advice I gave her...

Interestingly, I had the same problem when I first started. No one seemed to have enough money to buy my photos.

I cut my prices to the bone and still had problems. I wound up running all over creation and just barely breaking even. Some months I didn't even do that well!

I learned that my local grocery store would allow me to cash a check for a maximum of $100 over the cost of my groceries and that it took 3 days for the check to clear my bank so - you guessed it, I paid my bills by "floating" checks. At the end of the three days, I frequently didn't have the money to cover the check, so I wrote another one to cover the first and so on.

At my lowest point, I was "floating" checks at 5 different branches of the supermarket! Some days it took half the day just to drive around to all the stores and cash checks to make deposits to cover my last batch.

Another idea I had was to let people make payments. At that time, my basic package was $50 and I had dozens of people signed up to pay $10 a month!

Collections were a nightmare - very few people trusted me enough to agree to the plan unless I delivered the prints up front and then when the second payment came due - no one answered the phone anymore! (Damn that caller ID!)

Finally, at my wits end, convinced I was either going to go out of business or end up in jail for check fraud (or both) someone gave me a piece of sales advice that turned it all around.

I was at a dog groomer's shop talking to the owner and she asked how my session went with - let's call her...Ms. X.

She'd been referred to me by the groomer.

Ms. X had three adorable dogs and she wanted photos of them. I did the session and it turned out to be one of the best shoots I'd had up to that time! Again, no money. Again $10 down and nothing after the initial payment.

I hadn't told the groomer of my financial woes and non-payment issues...so, the groomer happily went on and on about Ms. X.

She told me that Ms. X was one of her best customers and that she spent $100 PER WEEK grooming and pampering her dogs! Plus she spent hundreds of dollars in training and traveling to dog shows etc.

But, she didn't have $50 for me? And, she couldn't pay $10 a month?

Something was very wrong here.

I went to the best salesman I know - he makes an obscene amount of money - and asked for some advice.

Here is what he said - paraphrased, not an exact quote - "Your problem is simple, it's all in your head. You don't have any money and can't see yourself spending $50 on photos - when there are so many other things you desperately need. So, you believe everyone else is the same way.

They aren't. Stop spending their money for them! If they want something bad enough, they'll GET the money!"

That hit home pretty hard.

I immediately stopped offering a payment plan and in the 16 years since, not one person has ever asked for one. I just ask for a check for the whole amount and they pay it.

It's that simple.

For the ones who REALLY need payments, (and now, some of my orders are large enough where that is a concern) I got an account enabling me to accept MC and Visa.

Let them worry about collections.

Then, I doubled my prices and actually saw an increase in business. Higher prices mean you are a better photographer, right?

So bottom line...don't spend your customer's money for them, let THEM decide if they can afford you or not. If they hired you in the first place, they must be expecting to pay something. Don't let them down!

Some of my largest sales have come from customers whom I had (mentally) totally written off as a loss.

That said, I do appreciate that there ARE areas where the people really don't have the money. You may have to expand your territory until you find an area that is better able to afford you. It may require more time on the road, but it can be done.

But...

I think you will be surprised at what people will pay. I know I sure am.

If they can afford a nice shiny truck, or a big color tv, or a night eating at McDonalds, they can afford an 8 x 10.

Dan Eitreim has been a professional photographer in southern California for over 17 years. His data base exceeds 6000 past clients, and he says that selling YOUR photography is easy - if you know a couple tried and true marketing strategies. He's created a multimedia presentation that can teach ANYONE how to sell their own photography and generate freelance income in as little as two weeks. To learn more and enroll in a FREE photo marketing newsletter, go to: http://www.PartTimePhotography.com

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