How to realize better prices in the printing industry

Due to worldwide shortages on raw material markets, prices for raw materials and consequently also for printing inks increased in recent years. Nevertheless, many printing houses feel they cannot adjust their customer prices accordingly. An alarming development for the industry, as printing houses need to generate a higher level of added value for themselves in order to survive.

For this reason, bvdm, the German Federal Association for press and media, organized the pricing congress 2019 in Frankfurt am Main on June 5, 2019. The congress, which hubergroup sponsored as a partner, aimed at providing assistance to printing houses for a professional price management. In the focus of the event were several expert sessions by leading pricing consultants of Simon-Kucher & Partners on pricing strategies and their realization.

Sandra Binder, Sales Director Central Europe Sheetfed/UV at hubergroup, visited the event. She recounts: “There were many interesting sessions with helpful practical tips. For me, one of the most relevant aspects was that all of us should avoid a price war as profitability is more important than growth.”

Furthermore, the Simon-Kucher & Partners experts explained the concept of value pricing, which implicates that the price expresses the value of a product. This means for pricing one should not only consider the competition and the own costs but also the customers’ value and benefit. In addition, the consultants advised to differentiate prices with regard to customer segments, products, types of orders, and the customers’ willingness to pay.

When it comes to price adjustments due to increasing costs, the experts by Simon-Kucher & Partners pointed out that an intensive preparation work was important. Additionally, salespeople should keep in mind that service can be a helpful argument for negotiations while discounts and bonuses should never be arranged without a reason. Those are sensitive instruments, which should only be granted for a limited period of time and only for transactions paid for on time.

“With more than 200 participants, the event was a great success and hopefully a boost to revive the printing industry financially,” concludes Sandra Binder. “In any case, the participants’ feedback was very positive.”