3D management of printed quotations

- Nov 15, 2018-

3D management of printed quotations

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The current market is relatively transparent and the competition is fierce. Many industries are playing "price wars." As a traditional industry, the printing industry is also often a phenomenon of “shopping quotes”. If you maintain customer stability and company profits in the price war, as a printing industry personnel, especially the printing industry marketing manager, to face this market reality and combine the actual situation of their controllable resources, develop an effective printing price strategy, so that The two-phase situation of the company's profit business is guaranteed in the marketing strategy.


The market is used to exchange value, so the importance of pricing value is unquestionable. Therefore, many manufacturers, especially emerging powers, are not difficult to understand when they raise the banner of low prices. But not just the low price, customers are willing to cooperate. In many cases, customers use low prices as a means of exerting pressure on their partners. The customer understands the price as “comparative price” rather than “absolute price”. The customer compares the various conditions of the printing company to form a company grade concept, and then compares the printing suppliers of the same grade (mainly matching their own status), which customers think through comparison A reasonable price is a "price image." Just like there is only one single black printing machine, there are only three or five people in the workshop printing factory. If the one-color order is priced at 60 yuan, the quotation staff will hear the most answer: you will still receive 60 yuan for this factory! The customer believes that the "price image" of the printing factory's market is worth a few yuan.


The "price image" is the most important factor in the price war.


The price image means that the customer determines the corresponding supplier level through a certain customer evaluation system through the hardware environment of the supplier scale and the received image information of the supplier, and the acceptable supply price level determined according to the level information. range. Customers generally evaluate through three aspects: price advantage (Price Advantage), Price Quality, Price Honesty (Price Honest). The price advantage refers to the absolute price advantage, usually referring to the absolute low price under the same conditions. The price/performance ratio refers to whether the customer believes that this cooperation exceeds his psychological expectations after the end of a cooperation. Price honesty refers to whether the printing supplier is honest and trustworthy in terms of price. The impact of these three aspects on the price image is different for different consumer groups in different countries and at different times. According to the survey conducted by survey institutions on Chinese consumers in 2002, the weights of the three factors affecting the product/service price image are as follows: the price/performance ratio is 43%. The price advantage is 40% and the price honesty is 17%. This result has certain reference value for the people in our printing and marketing industry when formulating the price strategy.


The general price war in the market is only at the level of the print quotation. It is not part of the price image or just the price advantage of the price image element.


The supplier has a price advantage in the customer's mind, which refers to the market advantage of the company in printing companies with the same scale and technical conditions. The market advantage is the commanding height in the price war. Only printing suppliers with absolute market advantages can have a say in the printing price in the corresponding price war. Market advantage also determines the position of suppliers in the price image. If the overall quotation in the market is divided into three ranges of high, medium and low, the level of market position corresponds to the level of quotation.


In this regard, we need to start from the three levels of the following prices.


In general, the price hierarchy within the printing industry is divided into three levels: class price level, market price level, and transaction price level. The relationship between the three is shown in the figure.


The class price level is generally the leader of this category, which is owned by the flag company. For example, a company has the pricing dominance of this category of yellow pages printing, and the company's offer for yellow pages printing almost limits the yellow and white printing quotes. Then customers with yellow page printing requirements are generally based on the company's yellow page printing quotes as a reference to form a price reference system, and then according to the supplier's market image to correspond to acceptable supplier quotations. Here, the price width in the price reference system formed by the customer's mind constitutes the market price level of the yellow page printing.


After the price of the class and the market price are determined, the transaction price is the specific price at the time of the completion of each order in the market price activity range. The more obvious the market advantage, the more active the company has in the negotiation process of transaction prices. The transaction price range is determined by the company, but the specific transaction price is controlled by the business personnel. The price of the transaction determines how much profit will eventually fall into the pocket of the company! As a marketing manager, specific pricing guidance and encouragement methods can also reduce profits and turnover, and even play a key role in the adjustment of customer structure.


There used to be a company whose business structure was mainly based on social parts. As the company develops to a certain scale, it is hoped to adjust the product structure to obtain the journal business of the publishing house. After the task was released, the corresponding marketing system only made some changes in performance requirements and quotations, and other methods such as the commission did not change. The business commission of this company is calculated according to the processing output value. In general, the same amount of printed matter, the proportion of paper in the composition of journal products is far greater than the proportion of paper in the parts, and the processing output value of the parts is far greater than the processing output value of the journal. Since journal customers are relatively large customers, the cost of acquisition and maintenance is higher than the cost of social parts. But for business people, the difficulty of making a lot of money is less.


Here, the transaction price as the real price in the price war is not only a weapon in the price war but also a flag for marketing incentives and marketing direction.


Since the market image of the company is relatively fixed within a certain period of time, enterprises with market advantages have a price advantage! However, it can be seen from the survey results that the price advantage is not the majority of the price image, and its influence is even slightly lower than the performance price ratio!


The processing service characteristics of the printing industry are destined to determine the market image of the printing company by processing technology and customer service. The level of processing technology determines which team the printing company stands in, and the level of customer service determines the ranking of the printing company in the corresponding team.


Since the conditions of the printing enterprise and the processing technology level are relatively stable for a period of time, for the marketing manager, how to improve the customer service level to obtain a favorable market position, so as to grasp the initiative in the price war, perhaps A viable path to marketing breakthroughs.


From the information exchanged when I took office, when printing a new supplier, the first thing to focus on is the price. The price requirement is generally the same as the price of the previous supplier. Factory highs can be low, as long as it is not very outrageous. Too low to dare to go, on the one hand, worry about the quality is not guaranteed, on the other hand, worry about to prove that he was previously dereliction of duty or his predecessor dereliction of duty (predecessor may still be the boss). Moreover, if the low price is temporary, then it is difficult to apply for a loose price right regardless of whether the factory is changed or not after the price increase; the unnamed factory cannot go, even if the price is low. Because in the eyes of leaders, the low prices of these factories should be. It is also useless to say that the price is low, and the choice of these suppliers is risking being suspected of “falling personal benefits”.


Therefore, it is often preferred to choose a printing factory that is similar to the original printing supplier. Take a small order to the new factory to try. In the case of quality assurance, where to feel comfortable after that, choose which supplier to cooperate with. (This does not include the individual boss to choose the supplier, but the average individual boss also chooses to save the supplier when the price is the same)


This also shows that the purchase experience is determined by the consumption experience within a certain price range. The degree to which customers expect such consumption expectations determines their ability to rate the price of this supplier. Therefore, it is possible to simulate all aspects of the cooperation process between the printing and the printing supplier, and take corresponding measures to strengthen the customer service level for different links, so that the customer is satisfied with the process satisfaction.


Doing better in all aspects of customer service can effectively improve the "price-performance" score. The higher the level of customers, the higher the emphasis on “price/performance”. And this part of the customer is the high-end customer that many suppliers dream of.


For price honesty (action rate: 17%), any company that wants to develop in the industry will not adopt this kind of suicide.


As the saying goes, killing the enemy 1000 is self-damaging 800. The price war may be profitable for an individual in a certain period of time. However, the drinking and quenching thirst behavior of many individuals has caused the profits of the whole industry to fall sharply, and the industry has no profit. I can’t make any hard work. There is no final winner in this war. Only by creating my own unique selling point—market personality is the fundamental way to solve the price war.

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