The photo booth business is a creative and fun way to make money while being your own boss. But, like any business, it has its share of difficulties. With 12 years of experience in the business, we have put together this list of tips and tricks for maximizing profit in your photo booth business.
Define your differentiator
The photo booth industry has a very low barrier to entry. Most photo booth companies don’t have a brick and mortar location, so generally overhead is relatively low. In addition, both the technology and photo booth equipment have a lower cost and are more readily available as demand has skyrocketed over the past five years. Because of these factors, the number of photo booth companies has also exploded, meaning that you are likely to have competitors in your local area. The big question is, how will you stand out? What makes you unique in your marketplace? To dig deeper, ask yourself, not only what makes you different, but what gives you that something extra that customers are willing to pay extra for? This is your differentiator. Write it down. Practice explaining it until you have sold yourself. This is what will make or break your business! Some examples of key differentiators in the photo booth business include offering:
- Features that nobody else in your area offers
- The best customer service
- Free mockups
- The best onsite attendants
- Nationwide services
- The lowest cost (think Walmart)
Let’s take a look at a few of these in a little more detail below…
Sell Yourself on Creativity, Not Price
One of the most important things you can do to help establish your photo booth company’s brand is to be the best by being the most creative. This means understanding precisely what your photo booth software can do and using it in ways that nobody else has thought of yet.
In addition, if you want to compete on creativity, you’ll need great graphic designers on your team. This will allow you to turn your creative ideas into actions. Once you are sure that you can deliver more creative outputs than your competitors, you can charge more money than your them, because a potential client is no longer comparing apples to apples when they ask what you can do compared to another photo booth company in your area. Don’t let clients talk you down based on quotes they’ve received from other photo booth businesses. After all, you aren’t an apple anymore – you’re an orange. Too much flexibility when it comes to price is a slippery slope that can lead you quickly into a race to the bottom. Advertise and brand yourself as the most creative photo booth company from the beginning. You may lose a client here and there in the short-term, but over the long-term, you’ll command a higher price point. Fewer events at a higher profit per event is a win!
Selling An Experience
When you are selling your services to a potential client, focus on the experience that you create for their guests rather than just the photos they’ll get. People are more willing to pay a premium for a unique experience. For example, even though this activation was done with the same hardware and software it is clear that the one showing the animate gif is a much more interactive and immersive experience rather than just being a simple photo.
This approach is effective for both corporate and social clients who want to create an activation for their guests that they will provide memories for a long time to come. In the case of a corporate client, often they are looking for you to create an interactive experience that a guest will associate positively with their brand and will be likely to share on social media. In the case of a social or private client, they know that their guests have seen a “regular” photo booth before and they likely want their party to stand out. So pitch them on an idea that will create a “wow” factor.
Especially when working with corporate clients, it’s important to be clear on their event goals. How do you know what their goals are? Ask them! Seriously, just ask. Maybe they’re trying to get the most guests through the activation in the shortest amount of time. Alternatively, they may be looking to create an activation with the potential for social shares possible. Depending on their goals, there are additional services you can provide that will help to maximize profits. Here are some ideas for upsells that will help your bottom line and help the client meet their goals – a win-win for all involved.
- Vinyl wrap your booth and print custom sharing stations for clients with the goal of increasing brand awareness.
- Offer flip books for clients wanting to do a GIF, VIDEO, or Morph but who also want a takeaway.
- Offer additional sharing stations for clients whose goal is to get guests through the activation in as little time as possible.
LA Photo Party has all the products and services you could ever need to create an incredible photo booth business. If success is the route you’re trying to go down, we’ve got the know-how to guide the way. Check us out today!