McCurry Associates Marketing Idea Exchange Archives

Volume 11 - July 11, 2002

Bill McCurry McCurry Associates wmccurry@mccurryassoc.com 609 688-1169

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This week's issue is comprised of "gems" picked up on the beaches of Cancun while attending the Independent Photo Imagers (IPI) convention. The exchange of ideas was superb and I highly recommend IPI if you are a photofinisher and not part of any buying group. The idea exchanges and education are a secondary benefit of belonging to a buying group. The main purpose of buying groups is to consolidate their purchasing power to buy better together.

As a side note, it's amazing how an independent operator will let his ego outrun his common sense and feel he gets better pricing by himself than part of a group. Why do buying groups have large chains as members while small single store operators don't join? In today's marketplace, you have to subordinate your ego when common sense dictates another course. If you're not part of a buying group, check them out.

Bill

(As a matter of disclosure, McCurry Associates is an advisor to the Photographic Research Organization, a co-operative camera store buying group.)

Because of the format of some idea exchanges, it was not possible to determine who came up with what idea. Therefore, no credit to any individual store can be given. These ideas all came from IPI members at last week's convention in Cancun.

Idea #1 -
EVALUATE YOUR PRICES

   Sounds unheard of. in today's market, raising your prices. Two members reported very successful price increases. One lab increased prices twice in the last three years. Another raises his prices by his per print cost. Example: Old price was $2.50 for processing and $.40 per print so a 24 exposure would be $12.10 - the new price would be $2.90 for processing and with the same per print price (now $12.50 for 24). Thus, the customer is already "used to" that pricing because they recently paid that when they had 25 pictures on the roll. Neither lab reported any sales falloff.
   Bordered prints are all the rage. Some labs reported doing this for free. Many labs offer bordered prints as a premium service at a different price. The winner goes to a lab who charges $5.00 (as in Five Dollars) for bordered prints. While his peers drooled over that extra margin he replied, "Hey it costs a lot to shrink all those pictures to fit inside those white lines."
   In truth, it does cost a lot. PMA President George Champagne said last September that today's labs have to set aside 15% of retail sales revenue just to pay for equipment upgrading and maintenance. If you're not doing that you can't afford to compete. Does your pricing allow you to do that and still make a profit?

Idea #2 -
GIVE THE LADY WHAT SHE WANTS

   This quote has been attributed to many merchants from JC Penny to Marshall Field. The point is valid regardless of who said it.
   Many times in this industry we turn away the customer who wants a "tiny" picture for a locket. We're thinking of our production needs rather than the customer's benefit. One IPI member sells a sheet of 5x7 paper for $10. On that sheet are a dozen predetermined small cameo type prints of the same picture. Some are ovals, some are heart shaped, all various sizes. This $10 investment on the part of the customer gives them a picture they can use, plenty of spares for future lockets and rewards the lab for the initial template design work on their digital printer. A true Win-Win.

Idea #3 -

   Educating the customer about digital printing is still the major issue. One lab does free trial prints. Others work coupons or exchange deals with big box stores that sell digital cameras but don't do finishing.
   One lab makes ink jet prints on a cheap home printer and puts them in their front window in the direct sun. They price out what this home made print cost to make and how much time it took to print at home. Then they put one of their silver halide digital prints next to it. They show the lower cost and the customer can see the difference in quality and color permanence. They claim it drives digital print business right into their front door.