In my first post, I discussed choosing “regional games” over the “Olympics.” Today, I want to pull back the curtain on a specific boring game I’m currently playing: Professional ID Photo Software.
It isn’t glamorous, but it fits my criteria for a sustainable B2B SaaS: it solves a recurring problem, has near-zero marginal cost, and operates in a mature market where customers are already accustomed to paying for solutions. The problem can be solved with, e.g., Photoshop, and I know, based on my interviews, that some studios do. However, the market for a dedicated tool exists, as evidenced by software like ID Photos Pro.
Upgrading an existing product to target a new market
I already run a small, consumer-targeted DIY service for Finnish passport photos that I built years ago. While analyzing the space, I noticed a potential gap. There are old-school, Windows-only tools studios use, and there are consumer-focused web wizards individuals use. But there’s a lack of modern, web-based solutions tailored for professional studios that support Windows, Mac, tablets, and offer a modern UI.
I wondered: Is there a market for a modern, OS-agnostic (web-based) tool for professional studios?
If you want to check out the product in its current state, visit Passport Photo Lab at https://passportphotolab.com.
Here is how I broke down the idea:
– The Problem: Studios need to crop ID photos according to strict government specs. They might also need to replace photo backgrounds and create multi-photo layouts for print.
– The Competition: Heavyweights like ID Photos Pro are popular. Their pricing is: initial purchase (about 100€) + optional annual update fees. Based on available data, I estimate that ID Photos Pro is about 70k€ MRR business (if we do a rough conversion from their pricing model to a subscription model). It’s a mature market, but there could be room for a modern alternative. I’d expect some studios to always be looking for a tool (e.g., new studios or those revising their workflow), and those are the ones I should target. On the other hand, there are multiple web-wizard type tools targeting consumers. However, these often are pay-per-photo, and their privacy is questionable (this is my hypothesis based on the fact that they send customer photos, i.e., personal information, to their servers for editing), which makes them less appealing for studios.
– The Wedge: Modern web-based, OS-agnostic, privacy-first, pro-grade editor, that has a real editor look and feel instead of a spammy consumer web wizard. Pricing model: a subscription with no usage limits.
Pro vs. Consumer
One of my biggest hurdles in validating paid ad performance is search intent. Keywords like “passport photo software” attract many searches, but most of those people are likely individuals trying to save €20 by doing it themselves. They are high-churn, low-value users. To build a stable business, especially with paid ads, I need the B2B purchasers.
Early traction and the “broken PC” catalyst
I’ve started moving. I updated my existing product to target a “Pro” audience and landed a few initial professional customers or potential customers via lukewarm emails and (possibly) paid ads.
Based on my interviews with Finnish studios, the switching cost (or switching willingness) for studios is high. Most photo studios are creatures of habit. If their 10-year-old Windows software still prints to their 10-year-old DNP printer, they have zero interest in changing, and I can’t blame them.
My early few pro customers didn’t switch because they wanted a prettier UI. They switched because something broke, or they were setting up a new workflow for some other reason. A PC died, a driver stopped working, or they bought a Mac and realized their legacy software didn’t support it.
What’s next?
Validation is ongoing.
1. Google Ads: I’m running Google Ads targeting keywords like “passport photo software” and “ID photo software.” The goal is to attract the right kind of traffic (i.e., professionals) and gather data on acquisition costs and conversion rates.
2. SEO: I’m also working on SEO to capture organic traffic. This is a longer-term play, and I can’t expect immediate results, if any will follow. SEO is bad for validation because it takes time, but it’s worth investing in for the long-term potential.
3. Cold/lukewarm outreach: Reaching out to Finnish studios to understand the specific “pain point” that would trigger a switch. I have relationships with some Finnish studios from a related earlier project; hence the “lukewarm”. This has not shown much promise as a conversion source so far, but I’ve learned how studios run their ID photo operations. This step started long before I decided to update the product. The low willingness to convert was a strong argument against taking the next step, but other analyses still outweighed the interview feedback. If there are existing products, there must be a market, even if customers of existing competitors are unlikely to convert.
4. Reseller research: Identifying the distributors who sell photo printers. If I can get my software bundled or recommended at the point of hardware sale, the “low-touch” model becomes much more viable.
It’s slow going, but the data I’m gathering on B2B acquisition costs is worth more to me right now than the initial revenue.