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Printers have historically undervalued their services due to a manufacturing mentality. They operate under the labor theory of value, which states that the value of a service is determined by the amount of labor used in its production. Because marketing and cross-media service providers are offering a different portfolio of services, there is an opportunity to change both the structure and approach to pricing and be rewarded for value-add.
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About Barb Pellow
A digital printing and publishing pioneer, marketing expert and Group Director at InfoTrends, Barbara Pellow helps companies develop multi-media strategies that ride the information wave. Barb brings the knowledge and skills to help companies expand and grow business opportunity.
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Discussion
By Jason Pinto on Aug 11, 2011
Barb,
Thanks for posting this great article. Pricing is not always an easy topic to discuss... I'm absolutely thinking that this study is a must-read.
By Erik Nikkanen on Aug 11, 2011
I have thought and still do that price is determined by the market and not by the producer.
By Jeffrey Stewart on Aug 12, 2011
Thank you Barb for the excellent article. I love the point about labor value and/or undervaluing. If the print providers continue to give away everything to get the print, then their future is bleak. This is also why you are starting to see the trend of marketing services being cast out to independent business models so the conflict between services and filling the funnel for the manufacturing process (and capital investment)is eliminated. See you in a few weeks!
By Tony Hodgson on Aug 17, 2011
PODi has understood the link between value-based pricing and profitability for many years and recommended to its digital printing community to use value-based pricing strategies. PODi teaches the methods through its online Strategic Solutions Sales training. It is a methodical and practical technique for evaluating the customer benefits in a marketing solution and pricing accordingly. Thanks for your interesting article Barb because it shows real evidence that value-based pricing works for cross-media marketing services.