Selling cheap products does not create profit...
It is easy to find a cheap laptop. There are lots of computer manufacturers that compete heavily at the lower end of the market. However, one company where you wouldn't look for a cheap laptop is Apple. If you buy an Apple laptop, you are definitely purchasing at the premium end of the market.
Unsurprisingly, this means that Apple does not have a large share of the laptop market. Despite this, Apple makes rather better profits than their competitors. In fact, their profits from laptop sales exceed those from Dell and HP combined.
If you want a profitable business, you need premium products
This is particularly true in the print market. Standard prints products have become commodity items. Your customers will usually choose these products on price. Whoever provides the lowest quote will win. And there is always a cheaper price out there.
However, many companies need to stand out from the competition. They are happy to pay premium prices for something that is a little different. They also have to look harder for a company that will provide the sort of products. This is because, despite the price wars, the majority of printing companies want to focus on standard products.
Premium products offer you excellent opportunity to stand out from your competitors and to raise your profit margins.
Branding creates great opportunities for print
Over the past few years there has been a huge rise in the number of independent products that are being created. Many of them have a brand and a message that must be clearly communicated in order for the product to succeed. Print is a highly effective way to communicate a brand.
Remember that the branding is not just about the design that is being printed. The brands must also be reflected in the way that packaging and publicity materials are specified. The right substrates and the right finishes must be chosen.
Let's take the example of artisan chocolate. This chocolate is being sold at premium prices. The packaging needs to reflect an air of luxury. Luxury goods deserved luxury print. Because they are being sold at higher prices and, usually, higher profit margins there is also more budget to spend on print.
Here are three ways to create premium-priced print products
Add Scodix Finishing
Scodix is a print finish that creates a raised ink effect. It is a digital enhancement printed on top of an image after the printing and laminating process. Here’s a guide to Scodix, including how to set up your files.
Studies have shown that people are more likely to pick up and examine print that has a tactile, raised finish. In addition, Scodix finishing is often used to create a luxury effect on premium print pieces.
Add Laser Cutting
Laser cutting is a new alternative to die cutting. Traditional die-cutting relies on the special manufacture of cutting guides. These are expensive and take a long time to create. With laser cutting, this is no longer necessary.
Laser cutting allows very complex shapes to be produced. It also means that short-run special shapes are now economical. See here for more details about Laser Cutting using our motion cutter system.
Laser cutting allows you to be very creative in the shape of items that you produce. Remember, it's not just about the outside edges. You can also use laser cutting to cut out shapes in the middle of a print piece.
Engraving is usually thought of as a finish that is used for metal or glass products. However, now it can be added to print products as well.
Imagine removing a layer of ink, a layer of varnish or a layer of a substrate. The effects can be stunning. Again, using our motion cutter system allows this to be achieved without an expensive set-up. It means that this solution is completely suitable for short-run items.
Aren’t premium products just for a select few customers?
You may be surprised at how many people are interested in unusual printed items, no matter how high the price. These items definitely act as door openers. They can make the difference between you winning or losing a meeting with a client.
Many customers do not specify this type of product because they do not know it exists. Remember to advertise that you offer the sort of services. Make sure that you offer them as an upsell when you are clicking on standard items. You can find out more about how to upsell successfully here.
Make sure you apply premium pricing to these items
Remember, there is a big difference between the manufacturer's cost of an item and the perceived value of the item. It is important not to undersell the opportunity that premium products give your clients.
Apple makes its profits in the laptop sector by applying a high markup to premium products. That's exactly the same business model that you can be applying in the print sector.