Don't Whore Your Rate!

In these tough economic times, it's tempting to whore your rate just to keep busy or to make up for declining work. Clients are aware it's a bleak economic landscape out there for photographers and just about everyone. Always looking to save a buck or two, many of those who hire shooters are more apt to ask those photographers to discount their rates these days.

"C'mon! Do me a favor. My budget's tight for this one. Just knock something off your rate and I'll make it up to you next time."

Don't do it! They will not make it up to you next time or any time. They probably won't make it up to you ever! You just took a pay-cut, most likely a permanent pay-cut with that client. Why? Because you just re-set your rate with them. And you re-set it in the wrong direction.

Some of you might be thinking, "If you're work is good, they'll pay your rate." Well, that sounds reasonable. But the people writing the checks often tend to be less reasonable than the people receiving the checks in these matters. And while your work might be good, there's other shooters out there whose work is good as well. Certainly, good enough. And if they're willing to work for less, you might be out of a job with that client, especially if and when you give them a reason to go looking for your replacement; like when you balk at continuing to work for a discounted rate.

Here's what happens when "next time" comes around. You quote your usual rate, not the one-time discounted rate. They look at you questioningly.

"But last time you only charged me this much." They'll say.

"Yeah, but that was because you asked me to do a favor. 'Just this once,' you said."

"Why would I pay you more this time than I paid you last time?" They might ask, suddenly developing amnesia regarding the "last time" conversation.

"Because this is what you paid me all those times before last time," You might answer.

Their condition of Sudden Amnesia Syndrome continues to reveal itself.

You see where this is going?

Nowhere.

Like I said, when you agreed to that "one time" discount, you effectively reduced your rate permanently. Certainly, semi-permanently.

I know a photographer who worked regularly for the same company for 5 or 6 years. They paid him a decent rate and worked him often. He decided to ask for a $50/day increase in his rate. Suddenly, someone else is shooting for that company. And I guarantee that "someone else" is working for less than the original guy worked for. The company wouldn't pay the lousy fifty-bucks and now they're probably saving another hundred bucks or more. Good for them, bad for the guy who gave them excellent service for more than half a decade.

Here's another risk when whoring your rate: People talk. Clients talk. Sometimes, amongst themselves.

"I used Jimmy for my last project," says Client A.

"What did you pay him?" asks Client B.

Client A mentions the rate, i.e., the discounted rate I worked for.

Here's what happens in this scenario: Client B now wants that same discount. And if Client B is someone whom I work for quite regularly, he or she is now pissed! So, the result might be even worse than suddenly having to work for two clients at the same discounted rate. I might lose Client B entirely!

Obviously, this update is targeted at shooters who work for the same clients repeatedly. I'm one of those guys. I don't know how many others there are like me out there but there has to be a few, probably more than a few.

Here's some advice for newer shooters: Don't offer to work for a ridiculously low rate just to get the gig! Yeah, doing so might score you that gig. But you also set your rate low. Probably permanently low. Once you decide to go after what you should be paid by that client, the client will start looking for some other dumb ass who will work for that stupidly-low rate that got you in the door in the first place. Remember: Your work should get you in the door, the numbers are secondary. Also remember that doors are used for entering as well as exiting! You suddenly might find yourself exiting through that same door you whored yourself out to enter if that's what mostly got you in there.

Here's a personal story that typifies what I'm saying here:

Many years ago, while attending film school, another student and I stumbled on an opportunity to bid on a local television commercial spot. It was for two, already successful, Beverly Hills attorneys and it would be their first-ever TV commercial. (Ours too!)

We bid low. Break-even low. We got the gig and did a great job producing the spot. A few months later, the attorneys wanted to shoot another spot. (The first spot netted them tons of new clients.) We, my friend/co-student and I, were ecstatic! This was it: We were on the road to success in Hollywood.

But this time out, instead of just breaking even, we wanted to, at the very least, make a couple of bucks for the many hours we would have to invest producing the new spot. Our bid was still low but not ridiculous low. We would end up making something less than the kid working at MickeyD's but that was okay. We were making television, not french fries. Long story short: Some other dumb asses ended up producing the spot, probably for less than we produced the first spot for.

So remember: Don't whore your rate! Doing so will cost you in the long run and make your Kung Fu weak.

The pretty girl at the top is Mika from about two or three years ago. Mika's Kung Fu is strong!

NOTE: Be sure to read the comments section for this update! A PGS reader provided some truly excellent and informative subject-related links to articles, by John Harrington, posted over time on his Photo Business News & Forum blog.