This February, the Maryland legislature overrode the Governor’s veto of law HB 932, which applies Maryland’s existing 6% sales and use tax on electronically delivered and remotely accessible software, digital products, and cloud-based data and information services. As a result, Maryland began imposing the sales tax on the sale of digital products, starting March 14, 2021. Charging sales tax on digital products has always been a fairly grey area for Maryland photographers but this law makes it perfectly clear - if you are a single fee photographer who includes digital files in your sale, the 6% applies to the entire fee. If you book a family session that is $375, I must now immediately pay $22.50 to the state. I hate that this is an additional expense that I now have to pass on to clients, but this change has added a new layer to the conversation about why photographers charge as much as they do.
Several times a year I am asked why is photography so expensive? Sometimes it's a prospective client, others it's an inquisitive friend or family member. Here's my best attempt at explaining...
Let's start with the cost of equipment. Did you know that photography (along with videography) is the one of the professions with the most significant start-up investments? Starting with a camera, a professional body will cost you at least $2,500. Most professional lenses will cost $2,000. I'm most familiar with Canon, and most portrait photographers work with a combination of 85mm 1.2 ($2,699), 50mm 1.2 ($2,299) or 70-200 2.8 ($2,699). Fun fact: these expensive lenses will thankfully outlast your camera bodies. And speaking of camera bodies, most photographers have a second camera body in case of emergencies. Don't forget that these camera bodies will need to be replaced after about three years because, like any technology, they will become outdated. You'll also need extra batteries, memory cards, and lens filters.
Now that you have all of this fancy equipment, you need to be educated on how to use it. When you hire a professional photographer, you're likely hiring someone who has spent years perfecting his or her craft. Like any service career from hair stylist to tattoo artist, education and experience will vary widely among photographers. Of course you'll save money by getting your tattoo from someone who is just learning but should expect to pay more for someone who has had years of experience and training. I complete at least two classes or workshops a year with industry leaders to hone my skills with online classes often around $500 and in-person workshops running into the thousands.
There are also hardware and software expenses to consider. You'll want to edit your beautiful photos - so you'll need a good computer and Lightroom or Photoshop ($19 a month for the most basic annual subscription.) You will also need to decide on how to store your photos. A few external hard drives are a few hundred dollars and cloud storage is more.
As you can see, this is all adding up quickly and you haven't taken a photo yet! You're still not ready. You'll need to decide if your business should be an LLC or a Sole Proprietor and how you'll obtain insurance to protect all of the equipment you've just invested in. Wedding and Newborn photographers will almost always go with an LLC which carries extra legal costs. The most basic insurance comes with a membership to Professional Photographers of America which will cost a minimum of $300 a year. Don't forget to check if your area requires a business license which can also add hundreds to your annual costs.
You're going to want a place to show your work to potential clients. Having a facebook page may be enough, but most professionals will also have their own website. There are many options that will also include a platform to deliver your photos to your clients. I use one of the most reasonably priced and it's $300 a year. I also have a professional Vimeo account to share family films ($84/yr) and an account with a music distribution site so that I have legal options for soundtracks ($300/lifetime). As you are trying to grow your business, you'll also need to consider spending money on business cards or other advertising and marketing.
Now you're ready for your first client! Don't forget that you should immediately set aside 30% of your income to pay your taxes (and that you'll need to pay them quarterly to avoid penalties if you make enough!) Also, now would be a good time to make sure you have a reputable accountant. While we're talking about accountants, you also want to ensure that you have a solid legal contract to protect yourself and your business. Many clients will want to pay you through Paypal or Venmo, so make sure that you establish a business account and that you anticipate the fees at a minimum of 2.9%. Being self-employed also means you'll have to consider investing in your own retirement accounts and purchasing your own health insurance unless you are fortunate enough to get it through a partner.
There will always be someone who looks at the cost of photography and says "it costs all that just to press a button?" A professional photographer will have invested far more than just the time they spend with you during your session. There is preproduction - planning the session, coordinating the date and time, getting to know your family ahead of time through a meeting or a questionnaire, preparing equipment. On the day of the session I always arrive well ahead of my clients to scout the area and come up with a plan that works with the current lighting. After the session, there's downloading the images, culling to choose the best, editing the images and uploading the final product to deliver to the client. I spend a minimum of 8 hours editing a full Family Session.
I know that is a LOT of information and bless you if you're still reading! This fall I will celebrate 9 years in this business and I still can't imagine doing anything else. I love my clients and watching their families grow. I was thinking about writing a blog on the gear that I use, let me know if you would find that interesting!
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