Stock Market Downturn And Benchmarkers

In 2001 after 9/11, the US stock market took a dramatic downturn. The Singapore stock market followed soon after. One of the most well known advertising photography studio in Singapore slashed their fees by approx 33%, the rest of the commercial photographers had to re-adjust their day rates since clients were saying, “If this famous studio can charge me a lower rate, why are you charging me same/higher?”. The day rates for that segment of the photography market tumbled almost overnight. The rate cut was a tad too drastic.

Like it or not, professional photography fees are not arbitrary. They are linked to a complex supply/demand chain that is also closely tied to the Singapore economy. In this system, the de facto bench markers play an important (though not 100% critical) role in the price structure, especially if they decide to lower fees. In an economic downturn, the benchmarkers don’t have much of a choice since the clients will have less money to spend. But more importantly, they have a choice in how much they want to lower their fees. Benchmarkers have a responsibility to their peers, even if they are ignorant of the fact.

If the stock market in 2008 mirrors 2001 situation, the downward shift is inevitable. As for our fees, we will wait and see what benchmarkers do.