I came across this post written by Marianne Drenthe for ProfesssionalChildPhotography.com that really does a good job of explaining why it costs more to go to a custom photographer. I'm reprinting it here with permission....
The photographic art you choose to place on your wall is ultimately the result of the vision of the photographer. This vision, coupled with what you wear to your session, the environment, the lighting, even the mood the subjects are in at the time of photographing creates the work that you will want to proudly display on your walls forevermore.
Your first step in the process is more about determining who you are, who your family is and then seeking a photographer that reflects your style. For instance let’s say your family is extremely outdoorsy and loves playing on the beach. You start determining what style you like, browse through photography website portfolios and determine if any of the styles exhibited there would be a good fit with your life and family style. You have already determined that you should probably seek out a beach type photographer (that is if you live near a beach) and then begin narrowing the field down a bit.
Finally after a bit of internet research, you have narrowed it down to two photographers who do what seems like solid work, the sort of outdoor beach look you desire. It is now time to ask yourself: Do you like photographer A’s style over photographer B’s style? Is it because the people in the images of A’s style are having a great time and it seems very caught up in the moment vs. B photographer more posed, looking in the camera images? If this is a case, you probably like lifestyle photography or perhaps even take it a step further and define your desired style as a photojournalistic photography style. The photographer you probably should choose is photographer A because their style is very similar to the style you desire.
What custom photography ultimately is all about is choice and experience (as in THE experience). Custom photography is about finding someone who will photograph your family, give you devoted 1:1 attention without worry of the next ‘in line’ or the feeling of a crowded portrait studio. A custom photographer will typically show you a fairly extensive gallery culled to only show the good images that meet the photographers’ creative sensibilities. Often the images are fully edited images-color corrected with blemishes and undereye circles removed. Custom photographers are also known as boutique studios, offering a range of products and unparalleled service. Think Lexus vs. Hyundai, think Nordstrom vs. WalMart.
Custom photography should have you, the client and your experience in mind.
Why does Custom Photography cost more?
Digital technology is brilliant. The digital revolution has brought amazing flexibility and amazing amounts of control for the photographer, the hobbyist, the professional, the amateur. With flexibility comes a price though. Camera equipment is still considerably more expensive when you factor in its’ lifespan, the need for additional resources for processing those images, the time it takes to get a usable image and the effort that goes into all of this.
Even though you pay $1.99 for a print at your local drugstore and paying for film is pretty much a thing of the past (although you still pay for memory) you may be wondering why you may pay upwards of $40, 50, 70, 90 for a custom photography print. Some photographers hear this statement every once in awhile:
"How in the world can you charge $60 for an 8×10 if it costs me less than $2 to print at the local drug store?"
The answer is multifaceted and has a lot to do with the time, aforementioned equipment costs, artistic vision and reputation of the photographer, expertise and the usual costs of running a legitimate business.
TIME of the CUSTOM PHOTOGRAPHER:
Approaching it from a time standpoint, for instance let’s imagine if you will that you have hired a photographer who has work that you love and that is travelling an hour to your on location session. TIme break down:
Session prep time (30 mins - 1 hour, includes equipment and back up equipment checks + vehicle checks)
One hour travel time TO session
15-30 minutes prep time at client’s home
90 minutes-2 hours with client photographing subject
One hour travel time FROM session
30-45 minutes uploading time from digital cards from camera to computer
30-45 minutes time spent backing up the original images
2-5 hours editing time to present you with a diverse gallery of edited images
1 hour prep time getting ready for ordering
2-3 hours time with client for ordering images
1 hour sorting through and checking order
30 minutes-1 hour prep time for delivery
30 minutes-1 hour getting order shipped
Any additional phone time or time needed for add on ordering, shipment issues, quality issues
As you can see, average client time for a session ranges from just under 13 hours to 19 hours dependent on the photographer’s level of service. This is time dedicated only to your session. When the photographer charges $150-$300 for the photo shoot you are not just paying for the two hours of session time, you are paying the photographer for 12-19 hours complete time for your session. 
COSTS of the CUSTOM PHOTOGRAPHER:
Regarding equipment costs, a good quality professional camera with a selection of good optical quality lenses and digital storage mediums and computer set up can run from $10,000-$30,000 costs dependent on the photographer. Even though you can purchase a really good quality digital slr for about $2100 there are still other costs related to photography. A good lens for portrait photography can run up $900 to $2500. A dependable computer system with software loaded for business and creative usage can run $2500 to $8000 dependent on the photographer.
Then come lab costs for specialty products. A good photographer knows the lab is integral to their success. Photography labs dedicated to the professional photographer often cost more and offer a range of products that allows the custom photographer to continually offer new, innovative products for you, the discerning client.
Discussion other costs of running a photography business could take awhile so we’ll skip the intricate details. There is of course much more: including costs of running the business, taxes, studio rental/mortgage if the photographer has ownership of a dedicated studio, vehicular costs, costs of advertising/marketing, costs of sample pieces that the photographer will likely bring to your session, etc.
APPLES to ORANGES:
Often times clients will mention to their photographer that X studio in the mall/department store only charges $25 for an 8×10 or they may mention other things related to discount photography chains. The fact is those discount chains make their money on volume, not on customized 1:1 service. According to several articles at the time, did you know that in February 2007 a rather well known discount department store that started in Arkansas closed down 500 of their portrait studios across the nation? The reason is simple, you cannot make money on 99¢ "professional" prints if you do not sell enough of them. Interestingly enough - those same studios that offer the loss leader packages often charge much much more for their a la carte pricing (as high as $40-50 for an 8×10). The whole reason the big department stores began offering portrait studios in the first place was to get you, the savvy consumer, in through their door so that you could spend more money with them in other departments. Your "PORTRAITS" are considered the true "loss leader".
Going to a chain studio, as a consumer, you don’t have the benefit of 1:1 attention for 2 hours at your home where your child is allowed to explore, play and be comfortable in their home environment, nor do you get the experience that many custom photographers are known for or the lovely captures of natural expressions. You simply get a bare bones, "SAY CHEESE" experience. Keep this in mind when selecting a photographer. 
REPUTATION/EXPERTISE of the PHOTOGRAPHER:
Being in demand, being well known for quality work, having a good reputation often costs time on the photographer’s part. Their expertise comes at a cost, their time learning their craft and learning the intricacies of lighting and the commitment put forth on their end to create a persona about their business that oozes professionalism. A great number of photographers go a very long time from the time that they purchase their first good camera to making money at the business of photography. Many photographers, when first starting out, rush in thinking that the business will be easily profitable in no time, how expensive could it be to get a camera and use it to create their dream? They often neglect to factor in the cost of business, the cost of equipment, software, back ups, etc..
Being of sound reputation, a better professional photographer knows that they must always reinvest in their business to create the reputation of being top notch. To create good work good equipment, reliable equipment, back up equipment is a necessity. The photographer who desires to be known as better/best/unparalelled reputation-wise knows that the most important thing they can do for their business is reliability and dependability. This is how reputations get built. Good work often is a wonderful side product of building that good reputation.
I hope this (lengthy) article helps shed some light on WHY a custom photographer is a better choice for your family’s memories. The photographs that are produced as a result of the professionalism and dedication that your photographer has will be cherished for a lifetime (or more) and great thought and consideration should be placed into hiring who is right for your family’s most precious investment.
Booray Perry is a custom photographer in Tampa Bay
