Green Eyeshades Moose wrote:
> I spent a significant part of my life doing cost and P&L
> analyses far more complex than anything AG has proposed for
> his photography business.
I only give the "Cliff-Notes" version here. :) Don't want to
bog everybody down in too many details. Besides, how complex is
my photography business? That fact that any of us photographers
actually do a cost analysis is probably a miracle. Granted, I
could flesh it out even more and figure in leasing options and
business loans, but I'm a little leary about extending my debt
load as it then takes out the flexibility of having bad months.
I run on an asset-basis where I don't buy it if I don't have the
money. Hence my beg-a-thon for a 4x5 enlarger. My business has
zero debt. (household debt is another story, though).
There are days when I wonder "what am I missing?" Would getting
a high-end camera system (1DsM2) transform my business enough
that I could go full-time? In otherwords, is the equipment
holding me back? My wife says "yes". She's not overly hip
about my love-affair with film. "Why are you stuck in the dark
ages, get with the program!" I'm not so sure that I can blame
it on the equipment, but more on the business-operations aspect.
Now, she's encouraging me to get into video production. Ain't
no way I can get into that without leases/loans. But the money
sure is sweet and the business possibilities are seemingly
endless.
> No more! Even if I take a stab at selling prints, I'll make
> sure I don't know accurately whether I'm making a little or a
> lot and what my DCF
> cash flow ROI is. Heck, if I try it and like it, I might even
> keep it up if it loses money.
It's not a matter of if you lose money, but how much. Think of
it as offsetting some of the expenses. For example:
A couple of weeks ago Joel and I ventured up to the Porcupine
Mountains (Michigan) for several days of intensive photography.
By splitting the operational costs of his beast (gas was really
expensive) and avoiding motel/camping costs we were able to do
the trip quite inexpensively. I shot almost exclusively
digital, while he shot only digital. In just the past several
days I've sold enough framed prints (actually my wife did the
honors) to completely pay for the entire trip. According to the
IRS, this trip was a completely legitimate business-expense.
Oh, I've only managed to print THREE pictures from the trip so
far and two of the three have sold as well as three from a
previous trip in the Porcupines and one more from the Smokies.
Again, this has been just in the past several days and resulted
from person-person sales activities by my wife. (she even sold
one off the dining room wall in our house).
Now, combine that with the slow but spurious sales through a
framing gallery, website sales, and direct p.o.p. sales through
her business and stock-images the trip will pay for itself many
times over. However, the payoff may take years. I'm getting
"first-time" sales of photographs I took back in 1989. But the
dining-wall photo sale was probably the twenty-fifth for that
photograph and it was taken in 1992. I've only sold two other
photographs from that trip--yet!
> I'm impressed that two listees have already admitted to
> acquiring 5Ds as soon as they became available and
> presumeably at initial price. My guess
> at it's appeal must not be far off.
The 5D was discussed during our trip and I really hate to say
this, but I can see one of these, or a used 1Ds in my future. I
really like the 4/3 format for my "bread-and-butter" business,
but for stock and fine-art, the 35mm-sized sensor really is a
better option. Especially considering that an adaptor lets me
use my ancient Zuikos on it--including specialty lenses like the
shifts.
However, if I consider my "current" stock/fine-art sales
numbers, I couldn't justify the investment. If I figure that my
stock/fine-art sales could DOUBLE with the FF camera, then just
maybe I could justify it. This doubling of business, though
also comes with the increase in back-office time/expense. I'm
working harder and longer and buying faster computers. Will my
"take-home pay" really increase in the end? But then, will my
commercial photography assignments increase? It doesn't take
too many commercial assignments to pay for the camera
investment, but the premise is that you have adequate
studio/lighting equipment for the projects (add another
$20,000).
AG
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