Figuring out where you should set your prices in order to achieve your financial goals can be a little mind boggling. So, we’ve created this handy Price List Calculator to help you understand how all the numbers in your business work together to affect how much money you are able to have in your pocket in a given year.
Here’s how it works. Areas that are white are places where you can enter your known or estimated figures. Areas that are gray are auto-calculated based on the numbers you have entered and the factors that affect them, i.e., you enter how many shoots you want to do per month, and it tells you how many you’ll be doing in a year.
Start off by entering how much you want to be taking home in a year, your Total Personal Profit. Next, enter in how many Shoots per Month you’d ideally like to do.
Next, the Expenses section has drop-downs for Photography and Business. Photography includes expenses like how much you pay your hair and makeup artist and the cost of your studio rental. Business expenses include categories like software you use and your yearly memberships, such as SBE. You can also click the plus sign to add in any expenses that you don’t see listed.
In the Savings section, you can easily calculate how much you need to set aside per month in oder to meet your yearly savings goals.
The next section, Taxes, is a little more tricky. Here you’ll need to figure out your tax rates based on your tax bracket. We’ve put some estimated tax figures in there for you, so this part doesn’t stop you from getting a rough idea of your overall financial picture. However, when you get a chance, you might like to do the research into these actual amounts, so you can fine tune those numbers.
The next section, Totals, adds it all up for you. It lets you know how much money you actually need to be bringing in order to have the take-home amount you want. It also tells you how much you need to make on your average sale in order to make that happen.
Next, in Packages, we break this down for you into 3 possible package prices — a low, a medium, and a high. We calculated these numbers based on analysis of real-world photographers and what they price their packages at in order to achieve the sales averages they desire.
Now, that you’ve filled in all these figures, you can go back and adjust things to try out different scenarios. Say, for example, you don’t feel like the average sale calculated and the package prices are matching up to what you can do right now. In that case, you can see how those numbers adjust when you add more shoots in. Or, you might like to see what you need to do in order to raise your personal profit.
We’ve created this handy price calculator to help demystify your business finances. We hope it helps you to understand how the different financial pieces of your business relate to each other. This can help you figure out how many shoots you need to do and at what price in order to achieve your financial goals.