Here’s where your efforts pay off!
This section is relatively straightforward. Just select the Combination from the drop down menus on the left. Then select the number of weddings that you expect to book of that Combination. The various spreadsheet sells will self-populate as you make your selections.
If you wish to delete any Combinations, click on the red X to the right of the combination. Should you wish to make changes to the data, simply return to the appropriate previous section.
At the bottom of the Amount column, you’ll notice the Totals section lists the total number of weddings that you have selected. Below it you’ll notice the Your State Goal number of weddings. Ideally, the two should match.
This is your total income after your Costs of Goods sold.
Less Credit Card Fees
This number is based upon the estimate you provided in the Fundamentals section.
Less General Expenses
General Expenses are your Overhead or Fixed expenses. These are the expenses that you pay for whether you book ten weddings or twenty. These include marketing, office, insurance, website, software, storage, rent etc.
If you run your expenses on a program like Quickbooks, you can run an Income and Expense report to ascertain this number and drop it in here. If you don’t know your Overhead expenses, you can stick with the preset amount of 35%. (The Professional Photographers of America set their target amount at 30%.) To change the General Expenses amount, click on the percentage field and select a percentage that corresponds to your amount of expenses.
This is your bottom line profit from all of your wedding photography.
If you handle your own post-production, then you’ve also earned the amount that has been deducted from your coverage and products as a production expense. This is the total of all of your hourly production wages for working in your business.
Profit + Wages
This is your total income from your wedding photography business if you do your own post-production. It consists of both profit and your post-productions wages.
Your Target Profit Amount
This is the amount that you set as your income goal on the Fundamentals page. It’s the first question you answered.
Your Net Profit
Same as the New Profit from the Income Tab
Your Total Income from Profit & Wages
Same as Profit & Wages from the Income Tab
Hourly Pay Rate Necessary to Achieve Your Target Profit
For every hour that you work in your business, you must charge at least this amount in order to achieve your Target Profit within the number of hours that you’ve specified that you work in your business.
This calculation is performed by multiplying out the number of hours per week that you stated you work and then dividing that into your Target Profit. If you decrease your Target Profit Amount or increase the Total Number of Weekly Hours that you work, the hourly rate necessary to reach your Target Profit will go down.
This number is a guideline to always consider as you take on jobs and do work to improve your business.
Your Overall Hourly Pay Rate is
This is the actual hourly rate that you are earning from both your Net Profit and Post-Production Wages. To achieve your Target Profit Amount, this number must at least be equal to your Target Hourly Pay Rate
To increase this number you will need to do one or all three of the following:
- Decrease material costs such as the price of albums
- Decrease the costs of outsourcing your post-production
- Increase the prices of your coverage and/or products
- Reduce the amount of time spent on your post-production. The longer you spend working on post, the lower your hourly rate.
Your Average Net Profit per Wedding is
This value is the average Net Profit - not Total Income (Total Income being income from Profit and Wages combined) - from each wedding.
Number of weddings required to pay for credit card processing
The value compares your average Net Profit Per Wedding to the total of all credit card payments noted on the Income Tab of the Projections section. This lets you know how many weddings you must shoot to cover the cost of accepting weddings.
Your Costs of Sales
This is the total of all of your Costs of Sales. The target percentage that you should be looking to beat according to the Professional Photographers of America Benchmark Survey is 25%. The higher above this value that your COS is, the worse your business is performing.
Your General Expenses
The target PPA percentage is 30% or less for home based wedding photographers. 35% or less for photographers who work out of a non-home studio.
Your Bottom Line Income from Wages & Profit
The target percentage is 35% or more for home based wedding studios. 30% for photographers who work out of a non-home studio.