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The fairest pricing model is I guess to do a profit-based one. Take your costs and add the profit you want and that's your price. As in, if it costs $2 to deli
by IkmoIkmo 12y ago
The fairest pricing model is I guess to do a profit-based one. Take your costs and add the profit you want and that's your price.
As in, if it costs $2 to deliver a print, and the content costs $4 to produce, and you want $1 of profit, you price it at $7.
If you take out the cost of delivery, and find that the software team (hosting, apps, web design, database etc) costs $1 which replaces the $2 print delivery, you price it at $6.
The $6 would be pretty much universal, the $7 might be $9 in some places where delivery is expensive.
Anyway their current pricing is one of those things that the market should sort out in a few years. Seems like they can temporarily get away with charging 2.5x the American price because the costs of mailing is so expensive. But once you get other media going fully digital, or even partially digital, with the ability to massively undercut that price while staying profitable, you'll probably see prices come down a bit (or stop growing as fast as the rest of the world.)
Shitty thing to do though. On the other hand, consider this... NZ is probably a bit of an outlier. A place without a big enough market to make massive shipments by relatively cheap water, forced to do expensive shipping, and small enough for local printing not to make much sense logistically, creating a huge gap between digital costs and print costs. A discount-on-print is probably a pretty smart, easy, straightforward and fair pricing model almost everywhere else. Is it a better alternative to go with a pricing model more convoluted, more volatile and less straightforward for the entire world market, to accommodate a small market? I might have made a similar pricing decision if I worked there. Anyone got other good ideas?