Here’s where things start to get interesting. All the work we’ve done to this point will begin to pay off. You’ll note that the word “package” isn’t used here. Many photographers choose to sell their various products a la carte and not in packages. Still, most photographers have multiple items that that they frequently sell in combination to clients.
For example, a photographer may offer the following items separately:
- Coverage A - 6 hours of coverage
- Coverage B - 8 hours of coverage
- Small Album 8x10
- Big Album 12x12
Coverage A, being the most basic coverage option is factored in as “Coverage Only.”
Coverage B, is a combination of Coverage Only plus 2 extra hours.
From experience, this photographer knows that her most popular combination of album and coverage is Coverage B and the Big Album.
She also sells Coverage B with the small album but only occasionally.
So here we have Coverage Only plus three combinations. They may not be “packages” in the sense that they are packaged together on the price sheet, but they constitute regularly sold items that can be combined together for the purpose of determining sales and creating financial data.
The idea here is to either break down your actual wedding packages or determine which combination of coverage (or coverages) and deliverables you sell so that we can then build Projections off of them. You may create as many Combinations as you choose (by clicking on the New Combo button), however you may only use five at a time for creating projections.
To start, you’ll give your Combination a name. This can be the name of your package on the price sheet or it can just be something simple like Combo 1.
Combination Price to Client
If you have packages on your price list, then enter the price here. If not, leave this blank and we’ll get to it later.
This is a part of every package. You’ll note the Labor Cost (actually the cost to handle all of the culling and editing) post production and Material Cost are listed here for every item in the Combination.
Engagement / Bridal Session
If you offer one for your package select “1” under the Amt column.
There are two “Select Album” rows in the Combination spreadsheet. Typically one is a larger wedding album and one or two additional ones are parent albums. When you click on the Select Album row, you’ll be able to see the albums that you previously created. Be sure to select the “Amt” included otherwise the album will not sure up in the spreadsheet.
You may add additional albums as “Other Product” in the Costs of Goods section. For example, if you often add an engagement album or mini album, you may choose to add it in there.
In addition to the two album choices above, you also have four Options that you may add to each product. The Other Products that you created earlier in the Costs of Goods section will appear here in the pop up menus.
Total Before Discount
When you’re finished selecting your mix of products and services, you’ll note the total of all items selected.
- If you didn’t enter a price in the Combination Price to Client field above, the auto-calculated amount will be equal to the Total Before Discount.
- If you entered a price in the Combination Price to Client field and that price is less than the Total Before Discount price, then a negative number will appear in this field. This number is the difference between the Total Before Discount and the Price to Client.
- This number is not user definable however you may change the Price to Client to set the discount at the rate you desire.
Price to Client
This is the same field and same number as the Combination Price to Client above. If you change this number, the number above will also change.
If you provide your services a la carte and do not offer any discount for your combinations, then enter the Total Before Discount amount in this field. (This will set the Combination Discount field to $0.00)
Conversely, if you do wish to offer a discount, you may experiment with different prices to see what level of discount you prefer.
All costs are totaled up here.
Costs as a Percentage of Price
These numbers indicate what percentage of the sale your costs are.
This is your profit after expenses are accounted for.
Profit Margin is determined by dividing Gross Profit by the Price to Client. A healthy margin should be in the 65/70% or greater range.