But let’s take a look at this. Before we talk about the money, let’s look at the liability instantly incurred from this promotion. This photographer now has 400 one-hour sessions he has to provide. If he does 8 a day (and that would be grueling and only possible if he did them all at the same location) then it would take 50 days for him to finish fulfilling this obligation he’s now legally bound to. This particular photographer offered these at the client’s location of choice, so he’s not going to do 8 a day. He’s going to be tied to this unprofitable work for a long time.

Unprofitable? The woman I spoke with didn’t get it. I tried to explain costs, and she said, “oh he’s been in business for a long time. His camera was paid off years ago.” Really. He’s still using a camera he bought years ago? Hmm. I know mine have to be replaced every year or so.

So let’s look at the money numbers. Ignore that big $20,000 for a moment. It’s deceiving. Instead, look at the numbers for each session. $50 for each job becomes approximately $25 after Groupon takes their cut. For every session, the photographer also incurs mileage cost (average 30 mile trip at the federal rate of $.50/mile is $15.00) He incurs the cost of an archival-quality disk (bought in bulk, they are $3.50 each plus shipping) and the cost of packaging for that disk and shipping to the client…about $5.

So just taking into account the immediate costs of each session, that $25 has now been reduced to $1.50. You might think he made $1.50 per hour, but no…it’s worse than that, because every one-hour photo session requires much more than one hour of work.

For every hour I shoot, I spend at least 10 hours in post-production. Most do less, admittedly. I don’t batch my images, that’s why. I work on each one individually. But okay, let’s go with a more normal 5 hours of processing time. Add to that about 30 minutes getting each session booked, contracts delivered, signed, and  received. Add 1-2 hours driving time to and from the session, then another 30 minutes just to upload the images to the computer before post production begins, 30 minutes backing up images before working on them, another 30 minutes to burn a disk of all these very large files, and time packaging and shipping the disk. That’s 9-10 hours of work for every 1-hour session.  $1.50 divided by 9 hours = 16¢/hour. Wow! He made a KILLING! …if that’s what you call it when you make WAAAYY below minimum wage!

At $1.50 a session, so far that $20,000 has been knocked down to $600….for 400 sessions. Actually he hasn’t even made that. He’s lost money, because there are other costs that have to be applied to every session…a portion of all the other costs of just simply being in business. So he hasn’t made a killing; he’s taken a loss on this deal.

Plus add to that the opportunity costs of giving away files instead of selling them or selling prints, and spending time on 400 sessions at a loss that could be better spent on actual paying clients.

I can think of a few ways to turn this Groupon loss into a profit. Not much of one, but maybe slightly in the black:  shorter sessions, one location, no editing whatsoever…just shoot and burn. I know some people are using unpaid interns, but it can actually be illegal to have unpaid interns doing revenue-producing work. It’s not only unethical exploitation, but it also gets into the realm of unfair competition laws and labor code violations.

We all love bargains, and I can’t begrudge someone for taking advantage of one. I do! I also can’t begrudge a business for offering a Groupon deal. I may do so in the future. I can’t say Groupon isn’t worthwhile…as advertising. But no, photographers do not make a killing on Groupons.

The White Rabbit is having their annual Mother’s Day sale, and I’ll be jealous I’m not there. I always find something to buy every time I go. So shop to your heart’s content at their shabby chic boutique on Sunday, and then hop down Manchester just a short drive into Maplewood and come indulge in a glass of bubbly while viewing some art. My black and white art photography is on exhibit at the S.Carmody Photography studio and gallery, and I’ll be hanging out there on Sunday doing my part to make Mother’s Day fun for moms.  I’ll be serving some kind of delicious munchies too.

But the best part is this – bring your Mother’s Day receipt from The White Rabbit, sign my guest book, and I’ll give you a $100 certificate good toward a print purchase from your next portrait session.

If you don’t remember my photos of The White Rabbit from last year, here’s a reminder of what a sweet shop it is:

Until 12/1/09, FEB/MAR SESSION FEES ARE HALF PRICE. PLUS… with the purchase of a large canvas (24×36 or bigger) from that session, your entire print order is 25% off. The entire order.

For my clients, this is the most anticipated event of the year, since they like to order at least one showpiece and then lots of smaller prints for desks, ledges, wall groupings, or gifts.

To get the special pricing, go to my website here, and click on the front storyboard. Navigate to the contact section, and use the contact form to let me know what type of session you’re looking for. Be sure to include the code NOV25% in your email.

This offer is good for February or March 2010 sessions only, and is subject to availability. Not valid with any other offers. Sessions cannot be rescheduled to later dates, and session fees are non-refundable. Lauri Baker Photography does not sell gift certificates. This offer is not transferable and has no cash value. Print order must be placed at the ordering appointment, approximately 2-3 weeks following the session. Offer is not valid for customers with sessions already booked.