One of the hot topics on SportShooter.com these past few years has been USPresswire. While many are upset with them, they are just like Getty or Walmart. Their business model is working but affecting many professional sports photographers.
Much of this blog is based on reading Richard Anthony D’Aveni’s book Beating the Commodity Trap: How to Maximize Your Competitive Position and Increase Your Pricing Power. Please read it for a more comprehensive understanding of avoiding being a commodity than I am giving here.
D’Aveni says, “The arrival of a dominant low-end player shakes up the industry’s market power, as Southwest did in the airline industry, Dell once did in computers, or Walmart is still doing in retailing. It is tough for incumbents to compete with these disruptive players using their existing cost structures.”
These are the signs of a Deteriorating Market for D’Aveni
- A dominant low-cost competitor has emerged in your market, disrupting the status quo.
- The economies of scale enjoyed by the disrupting company make it impossible for you to compete on price.
- Customers are less willing to pay for additional benefits such as superior service and industry expertise.
- Your margins are falling, and you are losing market share despite lowering prices and product benefits to catch up with the competition.
We have to concede the low-end price market and step aside. Photographer John Harrington talks about a client who chose another photographer for something he did annually for them and was disappointed. When they returned to John the following year, he realized he had a niche. John got the job and raised his price, knowing they didn’t want to get burned again.
There isn’t a quick fix to the deterioration of prices paid for sporting event coverage.
I do think where there are no spec shooters and lowball photographers, shooting events are places for profit to be found.
We will become like moths drawn to a flame if we are not careful. Remember the saying, “Don’t fall in love with the car.” It will make it difficult for you to make a sound business decision.
If you have fallen in love with standing on the sidelines of sporting events with your camera, you are likely to contribute even more to the industry’s deterioration. You will also deteriorate your bank account to support your habit.
If your offering (photography) is similar to that of a large group of photographers, then you are just a commodity, and the low price will always get the job. You can’t tell the difference between one company’s product and another’s. The price tag is generally the only difference when something is viewed as a commodity.
If you cannot distinguish yourself from other photographers in a way that customers desire, you will have difficulty making a living. Due to saturation, you may have to leave a specific niche.