Lincoln Barbour has a great post on Cost of Doing Business for Photographers.
Being in business as a photographer, you have to know your CODB, because that’s how you set your Baseline Creative Fee (BCF). If you take jobs that are below your CODB, you are operating at a loss. You should also do your CODB every year to make sure you’re staying on track and to set sales goals.
In a very simple formula, this is how you calculate your CODB:
(YOUR SALARY + YOUR EXPENSES) ÷ SHOOT DAYS PER YEAR = DAILY CODB
Fortunately, there’s an easy way to calculate your CODB and it takes less than 30 minutes to do. You will need two things: Your Profit & Loss Statement from last year and NPPA’s Online CODB Calculator. If you use accounting software like Quickbooks (PC / Mac) or AccountEdge (Mac), it’s really easy to generate you P&L report. Make one and print it off. Then click over to NPPA’s Online CODB Calculator.
Not only discussing how to calculate it but also how to base your fees on it. Go here to read the post.
“ever since I standardized my pricing, I’ve gotten more jobs that pay better.”