Fuji X-E2, FUJINON XF 55-200mm, ISO 500, ƒ/6.4, 1/500

My stepson looked at his first paycheck and asked, “Who is FICA?” This was his first hard lesson about where the money goes – the cost of doing business.

Much of the money we pay for a service doesn’t stay with the service provider.

According to Dun & Bradstreet, “Businesses with fewer than 20 employees have only a 37% chance of surviving four years (of business) and only a 9% chance of surviving ten years.” Of these failed businesses, only 10% close involuntarily due to bankruptcy. The remaining 90% close because the company was unsuccessful, did not provide the level of income desired, or was too much work for their efforts.”

So many good photographers have to turn to other ways to make a living, not due to a lack of photographic skills but poor business practices.

Two things caused their businesses to fail: 1^st – they didn’t know the actual cost of doing business, and 2^nd – they could not promote themselves.

In 2001, I left a staff position and began freelancing full-time. My business has averaged 20% annual growth over the past 6 years. Many of my colleagues ask me how I do it.

This coming week, I am going to Hawaii to teach business practices for the third year at the University of Nations in Kona. First, I require the students to calculate how much it costs them to live for a year. I’ve found that even the older students who have been on their own for a time typically do not know what it costs them to live.

No matter the profession, if you do not know your costs, you cannot estimate your worth in the marketplace.

Once you know your cost and decide how much net income you want to earn, it is easy to determine what to charge for each project to reach that goal.

Take a moment to think about everything you need to do your job. Here are some categories from the National Press Photographers’ Association list I use. Just substitute your terms for similar types to figure out your annual cost of doing business.

• Office or Studio
• Phone
• Photo Equipment
• Repairs
• Computers (Hardware & Software)
• Internet (Broadband, Website & email)
• Auto Expenses (Lease, Insurance & Maintenance)
• Office Supplies
• Photography Supplies
• Postage
• Professional Development
• Advertising and Promotion
• Subscriptions & dues
• Business Insurance
• Health Insurance
• Legal & Accounting Services
• Taxes & Licenses
• Office Assistant
• Utilities
• Retirement Fund
• Travel
• Entertainment (meals with clients)

Add your desired net income to your annual business expenses, and divide that total by the number of projects you reasonably expect to do in a year. The answer gives you the average per project you must charge clients to pay those bills, stay in business, and live the way you want.

Now you must determine whether the marketplace can sustain this charge.

On average, you need to charge $1,000 per project to reach your goal. If the services you provide are what people can get anywhere, they will shop for price. If the going rate in your community is $1,200, you are in good shape. If the going rate is $900, you need to cut your overhead—you’re hoping for income, business expenses, or both.

The key to earning what you want comes down to service. You must be able to demonstrate to potential clients that you offer something more if you want/need to charge more than other photographers do.

I have found that I need to know about the subjects I cover more than other photographers do. In addition, I deliver my images a lot faster than most others do. I also listen carefully to what clients say they want and try to meet their needs and go beyond their expectations.

It was a revelation when I first determined my cost and income goals, just as my stepson’s response to FICA and other deductions from his pay was for him.

I do my best to keep my overhead low, but even close to 50% of my gross goes to business expenses. It was shocking to see what I would have to charge to pay the bills. This knowledge was the fire I needed to put in the time and effort to find ways to make myself more valuable to clients and to find those clients by seriously marketing myself.

Do you know what you cost?

Christians everywhere study prayer for many different reasons. Some want to harness the power of the prayer:

We want control. We want to be able and talk to God and for him to respond to our needs. But, we also see so many situations in which we believe we know what is best.

I am sure you can think of many other reasons we pray. However, what struck me about the topic of prayer is how much we study prayer to be able to control it.

Nikon D2X, Sigma 18-125mm f/3.8-5.6 DC OS HSM, ISO 1600, ƒ/5.6, 1/80

Debra Williams, D.D. did a study called “Scientific Research of Prayer: Can the Power of Prayer Be Proven?” Here is a link to the survey http://www.plim.org/PrayerDeb.htm. Her research shows that even when people do not know people are praying for them, there still is an impact. So who wouldn’t want to tap into this healing power?

If our friends all got together and compared their notes on communicating with us to get what they wanted—how would this make us feel?

Is the purpose of prayer to get what we want, or is it really about the relationship with God?

I like what is said in Romans 8:26 (see above). It paints the picture to me of a relationship that is so good and intimate it may resemble a couple who have been married for years and are in retirement, and their movements with each other reach a dance. Words are not always said, but they know each other so well as not to step on each other’s toes.

Christians in Photojournalism’s strength is in our prayer life. While individual prayer is our priority, we can learn from each other when we are with those who are on a similar path in this life.