Lab Discount

[Firegirl]

The lab I use has a big print special right now. So, my question is when I figure pricing on this for my customer do I start with the regular (non-discounted) price or do I start with the dicsounted price? Does that make sense?

[photosbysergio]

I would base my customer pricing on the regular lab prices. If it is a great deal on the lab discount, you can pass on a smaller discount to your customers for this one time. They may order more photos from you.

[Firegirl]

Thanks Sergio...I was beginning to think it was a ridiculous question!

[snidow]

Originally Posted by photosbysergio

I would base my customer pricing on the regular lab prices. If it is a great deal on the lab discount, you can pass on a smaller discount to your customers for this one time. They may order more photos from you.

I agree, base your price on their standard price and if you decide to pass that saving on to your customer be sure they know you are doing so. That way if they come back for more prints at a later date and the cost is back to the standard they will understand in the increase cost to them.

Also no question is "ridiculous", everyone started at the beginning we all have to learn.

[cmalana]

Unless you are into volume sales of a commodity, I would say that the cost of the print (cost of goods sold) for our business is not significant. For us, prints are predominantly priced based on expertise, time, and overhead (depreciation, etc.) that is required to produce the final image and not the raw material cost.

That means that whether the lab has a discount or not doesn't matter with the final pricing as long as the lab produces the quality that is required.

[CobyPhoto]

I have to agree with Carlo. Just because the lab has a special on big prints, doesn't mean that it cost you any less in time and work in the studio to produce that print. I would use this special to your advantage thou, offer a free 8x10" print, etc. with the purchase of a large print and that will help you sell more large prints. People always love FREE. Even if it isn't really free, they love it.

CJ

[boxofrocks]

Originally Posted by CobyPhoto

I have to agree with Carlo. Just because the lab has a special on big prints, doesn't mean that it cost you any less in time and work in the studio to produce that print. I would use this special to your advantage thou, offer a free 8x10" print, etc. with the purchase of a large print and that will help you sell more large prints. People always love FREE. Even if it is really free, they love it.

CJ

I agree. For example, WHCC has a killer deal on fine art prints right now. I'm using it to "upsell" prints, saying that the lab has a special. If the lab discount was, say 20%, I might offer to take off 20% of my price. I still come out ahead, and if you're only talking about the substrate price, there's no extra work involved.

Example with arbitrary numbers:

1 print on regular lustre paper (regular prices):

My cost: $25
My retail: $100
My "profit" $75

1 print on fine art paper (regular prices):

My cost: $50
My retail: $180
My "profit" $130

If the fine art paper were 20% off, you could do this:

1 print on fine art paper (sale prices):

My cost: $40
My retail: $144
My "profit" $104

In this example, I made $29 more without doing anything extra, and the customer gets a "deal". Of course, you could pass on whatever discount you wanted to--you could just say it was $10 off your regular price, and keep all of the difference.

Just seems to me to be a good way to increase revenue in an example like this.

[debibelt]

yes - your regular price
i go so far as to use my back up lab's pricing as a basis (a little higher) because if I am ever in a pinch and have to order from them I don't want to lose money

[CaptainTom]

Originally Posted by debibelt

yes - your regular price
i go so far as to use my back up lab's pricing as a basis (a little higher) because if I am ever in a pinch and have to order from them I don't want to lose money

You should price your prints based on a percentage mark up of the highest price you will be paying for the print.
If you get a special deal , you can offer something to the customer, but as some have said, you must make them aware that this is a one time only offer. They WILL come back a year later and expect the same price.

If you are pricing your prints so closely to your cost that if the cost changed, you would lose money, I would recommend you re-evaluate your pricing scheme.

[DEMDeepEllumMusic]

Since you are getting a deal from your printer why not just give your customer a coupon worth XX amount on further pics or additional shoots, so you are not giving them any indication that you had the job done at a reduced price and you may get additional work from them..

If they ask what the coupon is for tell them that it is a Winter 2007 promotion by you to your clients.

[Davidtxs]

yep all of the above plus what happends if you give the cust the better price and she comes back in two months when the special is not running anymore, you would look better in the long run if ya just used the reg price
i think lol fwiw

[Rolland]

Use the regular price.