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££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££ ££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££ ££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££ BUSINESS DEVELOPMENT www.images-magazine.com 108 images JANUARY 2018 Erich Campbell is an award-winning digitiser, embroidery columnist and educator, with 18 years’ experience both in production and the management of e-commerce properties. He is the partner relationship manager for DecoNetwork in the USA. www.erichcampbell.com Volume discounts Volume discounts can be granted not simply as a reward for larger orders, but because higher volume orders are legitimately less costly to run. They reduce time taken in loading files, reviewing instructions and rethreading machines, as well as reducing errors made during these transitions. Certain levels of efficiency are only achieved when production is dedicated to only one job for an extended period without any alterations in the run. You can offer volume discounts without necessarily undercutting your profitability if you understand the way this efficiency affects your costs. Valuing the difference Although pricing may include more variables – from digitising and design costs to rush fees and speciality processes – the central truth of pricing is clear: while we don’t want to overcharge in comparison to our competition, we must account for the resources required to run our specific businesses before quoting prices. The way a single-head business in a small home office and a 60-head shop in a commercial space charge for their work must be different, even if we only examine the difference in cost incurred by each and the potential volume each can produce. That said, there are tasks each type of shop is most suited to undertake. The 60-head shop is not best suited to individually monogram 10 gifts with a different cipher for each, while the single-head shop is unlikely to take on a 1,000-piece corporate order. In each case, these jobs don’t play to the best value of the shop in question. It also stands to reason that what may be the best pricing structure is to price based on the unique value each shop – whether based on positioning, technology, or the skills of each decorator – and what it can bring to the end customer. What a customer is willing to pay is the true value of the work in the market: convince the customer of your unique value, and you’ll be able to increase your prices based on their perception. Make their lives easier by offering simpler ways to order and receive goods, dazzle them with products or decorations unique to your shop, and make the experience of dealing with you enjoyable, and their estimation of your value will rise. In short, know what you must make, and provide real value by way of quality products, customer service and your knowledge and creativity. Leverage the experience you provide to increase the perceived value of working with your shop, and you’ll not only establish a price that your customers will be happy to pay, but one that’s sure to allow your business to grow and thrive. [Above] These types of orders with personalisation can be very lucrative for a shop that is set up for individual customisation and is willing to put in the extra service to make the customer ordering experience as simple as possible. With the addition of a name and the extra step of providing order forms or a customwebsite portal, you can take what would have been a wholesale-priced order and bring it into retail territory. Price doesn’t always have to be pegged directly to labour. £££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££ £££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££ £££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££