Many businesses are able to increase profits by increasing volume. This works well in a traditional retail business where increasing volume simply means placing a larger order with your suppliers and restocking the shelves. Or large nationwide photography businesses like Wal-Mart or Sear that can spread their costs over the sale of a number of different items. A small photography business however cannot easily increase volume because the client of a photography business is often paying for the specific work of the photographer and not a commodity. There are only so many shoots one photographer can do in a month. While it is possible to hire other photographers and try and compete with large volume establishments it is difficult. Before hiring others to meet increasing demand, try simply raising your prices.
A small photography business typically succeeds by increasing demand by target marketing and then raising prices to the level of that demand. Target those who value high end photography and have the means to pay for it. Decide on how many jobs you can complete in a month. As the point where demand increases beyond the number of jobs you can complete in a month, raise your prices. Then increase demand again and continue to complete this cycle.
As you do this you will find that your bottom line will increase dramatically and your reputation as a high end photographer will increase greatly in your community. It’s not really possible to compete with the Wal-Mart and Sears of the world on price; nevertheless you can increase your bottom line.