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Are you undermining the value of your time and talent? >> Chatty Tuesday

Tuesday, July 24, 2012 Posted inBUSINESS,CHATTY TUESDAYS

Hey gorgeous,

Question: Do you have a system in place that rewards your repeat customers? 

I think it’s something that is so important and such a great business idea – but too many business owners are giving loyal customers discounts that’s taking profit away from their own pocket! Silly move!

Because you? You’re pretty awesome. And you deserve to hold onto your profit while making your loyal customers feel appreciated at the same time!

Today’s video tells you all about the two rules you need to create an amazing repeat customers rewards model without undermining the value of your time and talent! Watch this video now:

I just know that this video will leave you feeling inspired and motivated to make your customers feel appreciated while making sure they value your time and talent.

After you watch it – I would LOVE to know what your opinions are on the best way to reward your loyal repeat customers! Do you have any ideas for Tiffany? Let me know in the comment section below!

Big hugs!
xoxo

P.S. Not only did I have my highest day of sales EVER last week in The Inspired Store but the new look makes it so much more fun to blog! I have to say a huge thank you to Melissa Love, my designer, for putting together such a beautiful site and a huge thank you to each of you for your support and wonderful comments :)

P.P.S. Do you have a question for Chatty Tuesdays? Just send me an email! I’d love to hear from you :)

Posted inBUSINESS,CHATTY TUESDAYS

  • http://www.alibeephotography.com Ali (Ali Bee Photography)

    Loved this question! I just recently been giving all my clients a 15% discount card along with their thank you letter and their disc of high resolution images. My mom recommended I reward them so hopefully they will use me as their photographer again. Another thing with my 15% discount is I allow them to give that discount to friends or family to use. I love the idea of the rewards card, so when say they have done 4 photo shoots with me, well the their 5th shoot is free. Or maybe they have booked 3 shoots with me, and then I give them a free mini shoot. I definitely don’t want my brand to be seen as the Walmart of photographers… so maybe I should change what I am doing..

  • http://www.margauritaphotography.com natasha

    I am kind of in the same position here with repeat customers, and I really like the idea of discounted frames or something along those lines, but would love to hear what ideas other people have. x

  • http://www.kassadiclickphotography.wordpress.com Kass (K.C. Photography)

    Hi Alex!

    Thanks so much for talking about such important business tools, they’re much needed and very appreciated! But I have a few questions/concerns. Pricing is an issue I’m having, because my friends expect me to do it for free, and since I’m new I’m not really sure what an appropriate starting price is. So I always get nervous when telling people my prices because I’m afraid I’m wrong on them (which I always tell my prices with confidence and security & I know I’m lower than every photographer in my area). A few times, I’ve had people ask my prices and I feel they’re reasonable, yet I might not get the business because they don’t want to spend that much. What do I do? But yesterday, after coming across your site, I did implement a frequent buyers reward, and for a limited time I am giving a free setting fee to clients who have used me three times. I’m hoping that will bring my repeat customers back for another shoot!

    Thanks so much for your chatty Tuesdays!

  • http://simplicityportrait.weebly.com alex

    Here’s an idea: If you are a photographer who has an overall price for taking the pictures, and then charges a certain sum for each copy of the jpeg/digital photograph, try this maybe. And this is sort of along the lines of what Alex was saying as well: Purchase 4 photo shoot packages and on the fifth, get 10 complimentary digital prints. Something like that <3

    simplicityportrait.weebly.com

  • http://saadiamechel.com Saadia Me’Chel

    Great video! Totally unrelated question but, where did you get that cute dress from?

  • http://www.simonbiffenphotography.co.uk Simon (Simon Biffen Photography)

    Hi Alex,

    Have you by any chance been reading Worth Every Penny by Sarah Petty?! It is THE book on taking any small business into a boutique model which offers experience and service rather than ever trying to compete on price, which will always fail as there will always be someone cheaper. She talks a lot about this kind of selling and it is a highly recommended read.

    I’m not sure that ‘rule number two’ makes much sense. Essentially you are saying just put your prices up so make ever lose out during a sale? What happens when the client realises they are paying only 10 cents less (in your example you raised the price to $1111 with a 10% discount then gives $999.90). The repeat customer does not feel special, in fact they’d probably feel cheated if on their first visit they were charged $1000 and second time round they are given a meaningless discount.

    I agree that you should certainly price your services accordingly and it’s ok to be more than your competition, especially if you feel you give true value, user experience, service etc (everything in the boutique model) but, you can’t just whack your prices up every time you offer a discount as you’ll be seen as very sneaky and could actually lose clients!

    And you’re bang on with adding value. It is definitely a good way to reward, rather than discounting, which just draws in price-sensitive buyers. Example in Sarah Petty’s book (sorry, it’s just so relevant in all this!) was instead of offering a 50% discount on a £500 service which less discount (£250) and costs for that service (say £150) your profit would be £100. Instead offering value by adding a £250 product as a bonus to your £500 service works out like so: less £150 costs for £500 service and £75 costs for £250 product and voila you have a tidy £275 profit, nearly three times more! Plus you have a very happy customer.

    Sorry if I’ve rambled a bit :)

    Simon

  • Jill

    I am a family photographer, and I offer a “grow with me” package- a years worth of the major milestones in the childs life. It’s a set of four photo shoots (maternity, newborn, six months, and 12 months). The package is one set price that they pay in full at the beginning of their first session, and the price is the equivalent of three and a half individual sessions, so essentially they’re getting the fourth session in the package half off.

    It works out for me, because a lot of times I will get a booking for a newborn session, and they won’t book me again until the baby is one, or a mom is unsure she wants to do a maternity session but knows she for sure wants the newborn/6 months/12 months, so she looks at is as a freebie. It’s nice knowing for sure you will get them back for all of the sessions!

    So even though it’s discounted the price of half a session, I still am booking more sessions than I’d (usually) be booking for that one client. I look at it as it is a deal for the clients, it gets me a larger chunk of money up front- rather than the cost split up over a years time, and it of course adds to my portfolio.

    Also, once that first year is complete, I make a small photo book for the client with photos from all four sessions as a gift. I don’t advertise this, they get it as a surprise in the mail! From time to time I also include some free prints on a large print order, or add a few extra pages to a photo book for free.

    I like to do things like that for my clients, because the best advertisement is good word of mouth. I truly believe that doing little things like that are really benificial to your business, because EVERYONE loves freebies, and it makes people feel special. :)

  • http://www.alexbeadonphotography.com Alex Beadon

    Jill!

    I absolutely LOVE this idea! How amazing! Thank you so much for sharing it here, I know that many people will be able to take value from your system and I really hope that Tiffany gets the chance to read your comment.

    Plus, I’m totally with you – “the best advertisement is good word of mouth”. High five on that!

    Keep up the incredible work, I’m loving your attitude!
    Big hugs
    xoxo

  • http://www.alexbeadonphotography.com Alex Beadon

    Hi Simon!

    Thank you so much for your comment – I love the thought and attention you gave to it, you brought up so many interesting points and I’m loving the conversation!

    Firstly, I have been hearing so many good things about Sarah Petty’s “Worth Every Penny”. It’s on my reading list and I can’t wait to get to it, especially after reading your comment as it sounds like it is very relevant to this topic and as though I would highly enjoy it!

    Your perspective on the second rule about making sure to work your repeat customer rewards model into your price is a valid one. If you have already booked a client for $1000 and then offer them a 10% discount on your new price of $1111, they definitely wouldn’t be impressed haha! In this case I would definitely recommend adding value to their repeat purchases instead of discounting.

    However, if you decide that you DO want to use discounting in the future as part of your repeat customer rewards model, I feel it is very important to make sure you account for that by raising your prices. I think it is important to think ahead and make sure that you can afford to offer discounts and still make your desired profit – if that makes sense?

    Your whole comment is pure awesomeness and I really hope everyone else has taken a chance to read it! There’s a lot of good value in there! Plus, what a great nudge to read “Worth Every Penny” :) Off to buy it now even though I’m half way through a couple books already haha!

    Big hugs!
    xoxo

  • http://www.alexbeadonphotography.com Alex Beadon

    Hahaha. Saadia, great girly question :) I’m glad you like it – I got it from Oasis!

  • http://www.alexbeadonphotography.com Alex Beadon

    Hi Kass!

    Thank you so much for your question. I have added it to my list of Chatty Tuesday questions, because it is something that has been asked at least three times now! So it is definitely an up and coming question :). I really look forward to talking about this in detail, and in the conversation we will all have in the comments section! :)

    Big hugs!
    xoxo

  • http://www.simonbiffenphotography.co.uk Simon (Simon Biffen Photography)

    Hey Alex,

    Thanks for your thoughtful reply, you have totally redeemed yourself! It makes much more sense in the long term to put prices up if you plan on implementing a discount for repeat customers.

    With my own business shooting weddings it is obviously a tad trickier to get repeat business (!) so I just aim to please. So much so that I want my previous clients to be my biggest voice. Recommendations are like gold. These guys do so much good work for me in referring others that a reward scheme for their referral is just as important! I am currently offering a cash incentive to each person who recommends a client who then books me (this is less a bribe, more a thank you, and any booking far outweighs any initial loss) However, I may change this later to a stamp scheme as mentioned before, for example, make three referrals and get an awesome lifestyle shoot. Nice!

    NEVER underestimate the power of those who love you and your work. I have an old rugby mate from Uni who heard about my photography via Facebook and has sent three couples my way even though he hasn’t seen me for years. He sings my praises without fail whenever he comes across someone who is engaged. You can’t buy that sort of genuine marketing, although I definitely owe him a few pints!

    Very pleased you’re getting Sarah’s book. I nearly wanted to keep it a secret as it’s so goddamn good, but really it’s about taking that information in and actually DOING something with it, which is where 90% of people fail. Not us though, ‘cos wer’re the top 10% hey?! ;)