TLDR: a local shop wants to license one of my photos for use in their store and advertising.  I have no freaking idea on how to come up with a price for licensing the image.  It'll likely be online and possibly print, in perpetuity.  No copyright transfer, but likely a non-transferrable unlimited use license.

Actual cost for the shoot was around $25 for materials, plus the photo stuff I had on hand, so it wasn't terribly expensive to do.

Any help here would be useful.

You honestly might want to throw this in GD too.

Good idea

How big is the company and what are the potential sales based off the use of your photo? Is it a mom and pop shop that might make a couple hundred bucks in sales off it or a Fortune 500 corporation that has potential to make millions?

Figure your fee based of that....

It's a small local business and I don't generally license my photos, so this is a first for me.  The issue I'm having is I've never had to figure out a licensing fee, so I don't know where to start.  Getty Images charges $575 for similar shots in smaller resolutions that are royalty free unlimited licenses, so that's the general ballpark of what I was thinking, but have no clue really.

Charge them $1 for getting you started.
Free advertising and reference is invaluable.

Valid point, I hadn't thought of that.  But exposure isn't horribly needed currently as I can't take (or usually physically do) paid work currently, let alone it would undervalue the stuff I've already taken and sold.

what do they sell? what do you need?

They're a small distillery that makes some great locally made vodka, and I like money.  Honestly, I'd probably just invest whatever I get paid into getting some filters for my camera for photos this summer.  150x100mm glass filters are spendy, especially when you're looking at grad and reverse grad ND plates.

a 500 dollar bill seems about right for a professional image

No.

Your work is worth something. Your time, travel, camera gear, computer, programs, editing time, all cost you.
Your experience to get the shot cost you all of the above to get. That is worth something.

While you don't need to bleed them, working for "exposure" is working for nothing. You are from Alaska you know people die of "exposure"
Looking up the Getty rates was a good start, and the advice about how big the market, and how wide the distribution, and long the use. was good. Those are things that figure in.

I cant give you a hard number. all of the variables mentioned plus the going rates in your market area I don't know.
But it looks like you need to start looking in to all those things, your work is getting noticed.

I am sure you are researching the net. checking the price list , when you can find one, for other photographers. Give a local commercial photographer a call. Some one who does product shoots will have a basic price list and contract.

Think about talking to a lawyer to have a basic use contract drawn up. something adaptable for different applications and shoots.

Congratulations on getting an offer, welcome to the hard work of photography.