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Pricer’s Points: Win at Print: Knowledge vs. Price | John Roche

So, you have a printing business and you want to make it a big success. What is the best commercial strategy for you to adopt in order to achieve this goal?

Let’s bottom-line it for you: in today’s super competitive printing industry, it is all about the price. It is not always about the cheapest price, but it is always about the customers perceived value for money; which is just another way of saying it is all about the price (have I already said that?)

With this in mind, there are only two business strategies that really work for printers, the knowledge-driven business model and the price-driven business model.

As good as it is, the knowledge-driven model can be trumped by an even more compelling business model in a very competitive marketplace; one that is driven by price alone.

The price-driven model

Price may be a dirty word, but it is often the most important part of a customer’s negotiation with you. Sure, go ahead and try to win over your customers with knowledge and expertise. Better do a good job of it, else you will see your customer list shrink in size rapidly. Or, you can take a different approach. You can try to out-compete the market on price alone using the so-called ‘pile them high, sell them cheap’ (PTHSTC) commercial model.
The PTHSTC commercial model really works; but only if you make it sustainable.

The very word ‘sustainable’ means that you should ideally never sell at less than cost. Using a low price, high volume selling model you need to be cheap so, to make this model a success, you will need to work at re-engineering your cost base and improving your productivity. Your objective is to manufacture as cheaply as the market is willing to pay at the bottom end, whilst still returning a profit.

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Win at Print: Knowledge vs. Price | LinkedIn.