PUBLICATION CENTER

Thanks to solid business decisions, technical expertise, and a flair for photography, Dan Johnson has built a growing business despite the current economic doldrums in his home state of Michigan.

When Dan Johnson and his wife, Jodi, opened their photography studio almost three years ago it was built on quite a bit more than a wing and a prayer. The Johnsons meticulously researched how to make their business successful, mainly by delving into the common characteristics of the most profitable studios across the country.

Beyond the obvious factor that the photography itself should be top-notch, the Johnsons found some interesting yet simple parallels between these successful studios: projection, printing, and proper paperwork.

All of these elements were quickly incorporated into the studio, at least as quickly as cash flow would allow it, with SuccessWare Photography Studio Management Software, a ProSelect image projection system, and an in-house printing workflow through LexJet.

Printing for Profit

“We outsourced our printing for the first year, and there were frustrations that came along with it. Number one was cost, especially that first year when cash was incredibly tight. We felt like we were sending out every dollar we had for printing, so it was financially frustrating. Plus we had delays and minor quality control issues,” says Dan Johnson. “I’m not sure how we found LexJet at first – probably through another photographer – but we called LexJet and started talking to Rob Finkel, our account specialist. At first, it can seem overwhelming with color calibration, layout, and so forth, but Rob and Tom Hauenstein walked us through every step along the way. Ultimately, we wanted a simple system that would enable us to print in-house, and maintain the best quality at maximum speed with total control over our images.”

Johnson found just that system, first employing an Epson 4800 with ImagePrint RIP software, and then adding a 7800 as the process picked up and the profit grew from printing in-house.  Johnson says printing in-house brought the cost of sale down by at least half, bringing profit margins up and increasing cash flow.

“Even if I have to re-print something three times, I’m at the same cost as outsourcing one print. It’s important to know how critical the cost of sales is, particularly in trying economic times, and it’s so simple to print in-house with LexJet that it’s truly a no-brainer,” says Johnson. “I attribute the bulk of our jump in profitability to LexJet and printing in-house.”

As with every other facet of the business, Johnson was not content to take his own observations and numbers at face value. He compared his numbers to PPA benchmarks and found that his profitability numbers ranked higher than the most profitable studios in the nation.

“Michigan probably has the worst economy in the nation, so people are not splurging on extras, but they are buying prints. We had double-digit growth last year despite the economy,” says Johnson. “We can tell a client that we do everything in-house so that we can monitor the quality and personalize it. If there’s something wrong, we’ll fix it. There’s no one else to blame, and it’s easy to fix because it costs half as much as it would sending it out.”

Johnson sells the print through projection in the studio’s theater room, plus a plethora of examples that hang up on the wall.

Then, costs and profits are managed through the studio management software. All combine to build a super-efficient business model, allowing Johnson to hone his photography skills and capture the best possible image.

Johnson even goes so far in his presentation materials to show the difference between a typical 8x10 silver halide print and one produced with his inkjet printer on Sunset Photo eSatin and coated with Hahnemuhle Protective Spray. The two prints were taped side by side, and Johnson “aggressively” ran a key through each print. “The silver halide print is trashed, but our eSatin print is still sellable.”

Though Johnson can point to certain factors that have led to the relatively astronomical growth of the studio, it’s all built on a simple philosophy, from which everything else flows: clean, simple, fun, and real photography. That’s also the studio’s tagline, but it’s not just a throw-away marketing line; it’s a literal way of doing things and it starts at image capture.

Capturing Clientele

“Our goal is to capture emotion and get to the true person through a photograph, and to produce that right out of the camera. That may mean some minor polishing here and there, but for the most part we want to nail everything out of the camera. We have a very natural, simplistic approach. We’re trying to maximize the time we spend with the client, and minimize the time we spend touching up the images afterward,” says Johnson. “We’re capturing a moment in that person’s life and freezing it on paper for them. Not only is it something cool now, but the most important thing for us is that this image will increase in value to them and their family as it gets older.”

Johnson says the studio is currently in a “transitional” year as markets are reevaluated and refined according to the five-year business plan. Last year, the majority of the studio’s business was in weddings. The remainder was divided up among portraits and commercial work.

This year, the studio’s transition will be away from weddings, though not completely, and more toward newborn and senior portrait photography.

Johnson estimates that 70 percent of the studio’s business in 2008 was weddings, 25 percent portrait work (families, children, seniors), and five percent commercial.

In 2009, Johnson would like to shift the percentages in the opposite direction. He simply sees more current business opportunity through the transition, plus the residual effects of focusing on these groups as the years go by.

“We want to increase the number of newborns and seniors that we photograph, and we believe both will lead into more families and children, so we’re being very intentional in our marketing and promotions. Babies will turn into children, seniors into brides, and brides into newborns,” says Johnson. “We’re small enough to be flexible, but we know where we want to go. We have a five-year plan and we’re working it.”

The studio is the culmination of many years pointed in a photography direction, but finally realized. Johnson took up photography in high school and it helped pay much of his way through college, where he earned Bachelor’s and Master’s degrees in business management.

After college, Johnson was a youth pastor and managed flooring stores. It was this varied experience, both with people as a pastor and in business as a store manager that helped sow the seeds for a successful photography studio.

“There was a stage in my life where it was just too busy with photography on the side, and my other job was way too stressful. There was a small studio here in town for sale when the owner decided to go into the printing business,” recalls Johnson. “We bought the studio about three years ago and took on a bunch of debt at the end of 2006,” he laughs.

As for the current state of the economy and its potential impact on business, Johnson says, “First of all, I don’t pay much attention to the economy. We do what we do, have fun, and it works out. We’re keeping our costs down, which is easier with LexJet, but we’re focusing primarily on the three markets that are less affected by the economy: newborns, high school seniors, and weddings,” says Johnson.