What is the largest hidden cost in a photography studio?

[Amy R]

Doing research for a business plan in a senior level business class. Wondering what the biggest cost is that I am overlooking...i.e.credit card fees, time spent in photoshop, etc.??
I mean those that you wouldn't normally think of. (equipment, rent, processing, utilities, props, advertising, etc.)

 

[cubfan745]

I'd probably go with maintenance and perhaps technology upgrades. Things do wear out (though if you buy good stuff to start it can last quite a while).

There often isn't a huge incentive to upgrade your camera (in spite of the frequent new models/versions offered by companies) but I do know some photographers that feel they have to get the latest. One common concern with wedding photographers is that they prefer to have better equipment than the people attending the wedding. Whether it makes a difference or not, I'm not sure. Sometimes there are new features that you may need to keep up with your competition.

Computers/storage/backups of data also are important ongoing costs. More and more storage needed, costs (labor + Media + hopefully offsite storage in case of fire) to create backups.

I guess keeping up with competition might be an issue, too. A new marketing plan from them may require you to react with one of your own. Pricing pressure from their sales/specials/etc.