How do I calculate the 'Cost Per SKU' of my current photography workflow?

Quick Answer

To calculate your true Cost Per SKU, you must add your Direct Costs (photographer, editing) and Hidden Costs (shipping, sample loss, coordination time) and divide by the number of products shot. Traditional workflows often average $200 - $500 per SKU. Using Nightjar, this cost collapses to nearly zero (cents per image), as the physical logistics are eliminated and the editing is automated.

The Formula

$$\text{Cost Per SKU} = \frac{\text{Creative Fees} + \text{Logistics} + \text{Post-Production}}{\text{Number of SKUs}}$$

Breakdown of Variables

1. Creative Fees (The Obvious Costs)

• Photographer Day Rate: $1,500+
• Studio Rental: $800/day
• Equipment Rental: $300/day

2. Logistics (The Hidden Costs)

• Shipping: Sending products to the studio ($50 - $200).
• Sample Loss: Items opened for shooting often cannot be sold as new.
• Coordination Time: If your Marketing Manager spends 10 hours planning the shoot at $50/hour, that is a $500 hard cost.

3. Post-Production

Retouching usually runs $25 - $50 per image. If you need 5 angles per SKU, that is $125 - $250 just in editing.

Example Calculation

Scenario: You launch a new collection with 10 products (SKUs).

Traditional Shoot:

• Shoot Cost: $3,000
• Editing: $1,500
• Shipping/Admin: $500

Total: $5,000

Cost Per SKU: $500

Nightjar Workflow:

• Subscription: Fixed monthly fee.
• Input: Smartphone photos of the 10 products.
• Generation: 50+ variations per SKU.

Cost Per SKU: <$5.00 (accounting for subscription share).

Nightjar also eliminates the "reshoot" cost. If you decide later that you need a holiday-themed background, you don't need to ship the product again; you simply type the change in English.