A few projects have made me think about pricing strategies of late which lead me to think about the way PSPs price their wares. Having been in over a 150 print shops, I have seen many methods from the ‘My gut tells me $X’ to very sophisticated calculations churned out of a print management system (MIS). Most print management systems use the cost plus method method to calculate price. This method adds up the costs, as defined by the PSP, for all materials and processes involved in producing the job in question and adds a markup percentage to ensure profitability based on those variables. What about jobs that are sold over the Internet?
Print eCommerce systems typically utilize a price list that is manually entered and edited by the PSP. But other factors come into play when multiple, standardized products are displayed in a storefront. A simple change in the way the price is formatted can affect purchasing decisions (consumers prefer 1499 to $1,499.00). The way products are displayed in juxtaposition to other similar or different products can also affect behavior. For other pricing idiosyncrasies, check out this post at Help Scout.
Fortunately, the Internet is perhaps the greatest consumer research tool as well. Setting up A/B tests, where one user(s) gets choice A and the other user(s) get choice B, will allow you to quickly see what is working with your audience.
photo: Paul Brigham