Newbie, Wanting YOUR advise on somethings!!

PricelessMomentsPhotoBooths
Howdy fellow Photo Booth owners!

I am a 18 year old, just graduated high school in May, I started my own Photo Booth Rental company February 2016, and it has taken off a lot better than I thought it would!! I am slowly getting the hand on most of the operations, etc. But I am looking for some advise on somethings.

What is your thoughts on advertising? What do you think is a good solution for advertising?? I recently tried Google Ad words, and discovered its supper expensive and doesn't do my small business any good really. I recently had my logos placed on my trailer in which I carry the photo booth in.  It hasn't been long enough to see what that is going to do for me sales wise.
When I started this company, I made a commitment to not only the business but the community in which I live in. I live in a middle class community and not everyone has the opportunity to have these wonderful expensive things at there events. SO, I decided I would make my prices as low as I could go. Right now I am at 1 hour- $200, 2 hour- 300$ 3 hour-$350 and then 40$ for each additional hour. Each rental comes with everything we offer besides the scrap booking option ($75) With that being said, there is one other photo booth rental company that im in "competition" with that is 200$ an hour up to 5 hours then 100$ for each additional hour.   Is this something that is ideal to your brain? Good idea? Bad idea??

I am open to all of your advice! I am new at this and would love to make a career out of this. Please let me know what your thoughts are on these and other tips!

 

Thanks!

Comments

  • 6 Comments sorted by Votes Date Added
  • JorgeAzuero
    @MikeBender thanks a lot. Is a working process but having both the CTA and the contact info helps customers take action and not struggle for contacting the business.
  • indy99
    This is my opinion......

    When you decide to undercut the competition you are actually undercutting yourself.  There are other ways to "give back" to the community ie: donations of time or services.  Customers only care about the price everything else is secondary to the sale.

    You should make your prices very close to the competition. A very low price will do a couple of things.... you make a lot less money,  people may think that if your price is that low then what other corners are you cutting to do that. A low price may scream discount but it also may imply cheap as in crappy service.

    My prices are actually a little higher then the others but I also give more including green screen and a premium booth.

    Kind of like the Cadillac versus the Kia thing.    Don't discount yourself you are worth more than you think.
  • CTJB
    I agree with indy99 on everything.  Be profitable first then give back, financially, with your service, time, or whatever.  We try and do 1 charity event every other month at little to no cost then discount our rates by about 40-50% or so on the others.  And pricing should be based on the market value (what others are charging).

    I would add that your cost is not just the equipment and paper.  There is replacement cost of printers and other equipment every few years, taxes, labor cost, the mileage wear and tear on your vehicle, insurance, gas, other costs of business, and of course advertising.

    Advertising really comes down as your customer acquisition cost...  how much it costs you to gain 1 client.  this really needs to be worked into pricing.  And there is no firm number on how much to spend on advertising.

    We advertise primarily to the wedding market. On online wedding sites, in bridal stores, bridal shows, etc.  In our area the bridal shows seem to be yielding a lower response rate than last year and previous years, so we are moving into google adwords to gain more corporate clients.

    We spend about 10%-12% of our income on advertising every year...but are trying to scale it back a little.  So if my rate is $800 per a 4 hour event I spend about $96.00 to gain that one client so my income is really only $704.00 before other expenses.  Then I would deduct all my other costs to determine my profit per event.  Our total costs tend to be $450 per event.  So a $200 - $400 sales price per event would be a loss, but we pay $200 for labor and if i do an event myself, I pay myself $200.00 for labor.

    Just my thoughts on it, hope it helps.

     
  • ted@sillyshotzphotobooth.com
    Jordan,

    You are sure to get a strong response to your pricing.  I would suggest that you also consider the amount of time that goes into a rental. Phone calls, emails, billing, travel, set up and then follow-up after the event.  I would consider booking an event at $300 on a weekday in January but not on a Saturday in June.  I am sure you will adjust when you show up for an event and discover that your clients that negotiated a reduced price with you were able to find the money for an open bar, a live band and top of the line catering at an expensive venue. The money is there, don't leave it on the table.

     
  • JorgeAzuero
    Hey,

    So this is my advice on advertising. Google Adwords can get really expensive. What has worked really good for the photo booth business that I work with is the organic search on google. This means that if a person interested in a photo booth in your area types "photo booth in (your city)" then the first organic result is going to be your webpage. I am optimizing this web page photoboothinmcallen.com/ and so far the owner is getting new calls every single week. As soon as you save money in your business, it would be a great opportunity to create a website and try to rank in google for the most important keywords. If you have any other questions in regards of SEO (search engine optimization) just send me a PM or send me an email to jorgeazuero@hotmail.com
  • MikeBender
    @JorgeAzuero nice work on the website. The CTA's and contact info is front and center. So many miss simple fixes like this.
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