Costs of Goods - Coverage

This section breaks down the costs of providing Coverage Only to the client without any deliverables.

Assumptions

(Asterix denotes a field that is not directly modifiable by the user. To make changes, return to the Fundamentals page.)

Second Shooter Hourly Rate / Second Shooter Flat Rate*
This is the rate you entered on the previous page. It’s listed here for quick reference.

Number of Images Taken Per Hour*
This calculation is based upon the number of images shot over the course of a wedding divided by the number of hours of coverage provided.  

Cost per Image to Cull All Images
Culling refers to editing down the total number of images shot to the number that will be delivered to the client. The Cost per Image listed here is based upon the image editing company ShootDotEdit’s pricing for this service. You may change this number if you wish. 

Cost per Image to Process/Edit
This refers to the cost to color correct and prep the file for delivery to the client. The number used here is an average based upon the rates offered by outsourcing companies. ShootDotEdit is priced at $.39 as of this writing. Others are lower however. You may change this number if you wish.

Post-processing per Hour to Shoot*
This calculation factors in the number of images shot per hour and the cost to cull and process those images. This references post-production editing only and does not account for second shooter expenses. This field serves as a wake up call and reminder that every hour you work and every image you shoot does result in a cost that does add up.

Hourly Pay to Cull and Process*
This is the effective rate that you are paying yourself by not outsourcing culling and editing for Coverage Only. This hourly rate is created by comparing the number of hours you spend editing each wedding in relation to the cost of outsourcing your editing to a third party. If the cost of outsourcing the Culling and Editing is $500 and you take 10 hours to complete the edit, your effective hourly rate is $50. You can use this number to determine whether it’s worth it to you to outsource the work and at what price.

Income and Expense 

Coverage Only Price to Client
This is the rate that you entered on the first page. You may change it here so that you can see the effects of different prices on your Gross Profit and Profit Margin. 

Hours of Coverage Provided*
Taken from the first page.

Second Shooter*
This is either the flat rate entered on the first page or a calculated amount based upon the number of hours in Coverage Only and the second shooter’s hourly rate.

Number of Images Taken*
Taken from First Page.

Number of Images Delivered*
Taken from First Page

Culling Costs*
Your Culling Costs are the based upon the Number of Images Taken multiplied by the Cost per Image to Cull. 

Editing Costs*
Editing Costs are based upon the Number of Images Taken multiplied by the Cost per Image to Process/Edit.

Additional Expense
Enter the average of additional expenses you may incur and wish to account for. Car, taxi, parking, food, proof book and film are some of the expenditures that you may regularly incur in the course of providing wedding photography services. 

Total Editing/Post-Production Costs*
This is the total of both Culling and Editing Costs. In your projections, this number will be folded into your labor expenses.

Total Material/Other Costs*
This is the total of Second Shooter and Additional Expense costs. Even though the second shooter isn’t a Material Cost per se, we’ll consider him/her one for our purposes. 

Total Costs*
The total of Editing and Material Costs.

Gross Profit*
This is your profit for Coverage Only after deducting for the Costs of Goods required to shoot and deliver the wedding to your client. 

Profit Margin*
Your Profit Margin is calculated by dividing your Gross Profit by the selling price of the coverage to the client. It’s preferable for your Coverage Only Profit Margin to be at least 70% if not higher. Margins lower than that but above 50% are in the ragged zone. Any margin below 50% is in the unsustainable zone. Shooting more wedding at that stage is just more work without much return. Profitability is the key, not volume!

When you’re finished with the Coverage section, click over to Albums under the Costs of Goods section.

 

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