The document discusses SuperPhoto's pricing, product, and delivery policies. It identifies issues with consumer choice and quality. Key questions are around whether pricing stimulates larger orders and frequency. Competitor analysis shows SuperPhoto is priced competitively. New policies propose a photo cover as superior, adjust prices, and offer samples/themes. Delivery policy changes address issues with the carrier by offering express options. The goal is to satisfy customers and stimulate repeat and larger orders.

1. Pricing, Product & Delivery
Policy
Dimitri Popov
CEO
SuperPhoto
July, 2009

2. Current issues
• Consumer Choice - made difficult
• Poorly communicated (web site and software)
• Difference in 20 and 40 pages misleads
• Photobooks start only from 199, nothing below 100
• Quality (soft cover)
• Low demand for some formats: A3, A4 Portrait

3. What we want from a
satisfied customer?
• Recommend others (family, office)
• Increase average check
• More expensive photobook
• Larger format
• More pages
• Several photobooks in one order
• Increase frequency of orders

4. What a satisfied customer
wants from us?
• FINANCIAL • SERVICE
• Frequent flyer program • Faster delivery
• Volume discounts (several • Reliable delivery
copies, additional pages,
various books) • Help in design (professional
or a class)
• PRODUCT
• Help in photographing
• New features and formats (professional or a class)
• Constant quality

5. Key pricing questions?
• Is our pricing good enough
• to stimulate customer future choice of a larger book?
• to stimulate customer to insert more pages?
• to compete with photo printing (to make customers think of
switching)?
• Is our delivery policy OK to initiate first orders as well as generate
profits?

6. Current pricing & formats
Soft Cover Hard Photo Cover Hard Linen Cover
A5 199/7.95* 249/7.95
Small Square 21 339/9.95 379/9.95
A4 Landscape 395/9.95 365/9.95
A4 Portrait 355/9.95 385/9.95 375/9.95
Big Square 30 695/15.85
A3 Landscape 795/15.85
* Here and everywhere price for 2 pages

7. AlbumPrinter Pricing
GBP Hard Linen Cover Hard Photo Cover Leather Cover
13x10 9.95/+0.25 +2.95 +3.50
A5 15.95/+0.40 +3.95 +4.95
Small Square 21 24.95/+0.65 +4.95 +7.50
A4 Landscape 25.95/+0.65 +4.95 +7.50
A4 Portrait 25.95/+0.65 +4.95 +7.50
Big Square 30 34.95/+0.75 +7.25 +9.95

8. Blurb Pricing
Euro Soft Cover Hard Photo Cover Hard Linen Cover
Small Square 18 12.95 24.95 22.95
Standard Landscape
20x25 19.95 31.95 29.95
Standard Portrait
25x20 19.95 31.95 29.95
Large Landscape
28x33 n/a 56.95 54.95
Big Square 30 n/a 62.95 59.95

9. Smilebook Pricing
US$ Booklet Soft Cover Linen Cover Hard Cover Leather
Pocketsize 5’’ 9.95/+0.50
Square 21 16.95/+1 26.95/+1 32.95/+1 44.95/+1.25
A4 Portrait 19.95/+1 28.95/+1 34.95/+1 39.95/+1
A4 Landscape 39.95/+1
Large Square
30 68.95/+1 68.95/+1 68.95/+1
A3 Portrait 89.95/+1.50
A3 Landscape 149.95/+2 189.95/+2

10. We are priced in line with
competitive markets
Base* Index Base Index Base Index Base Index
A5 245 100 15.95 100 100 100
Small Square 21 375 152 24.95 156 24.95 156 32.95 156
A4 Landscape 395 159 25.95 163 31.95 200 34.95 165
A4 Portrait 395 159 25.95 163 31.95 200 34.95 165
Big Square 30 695 275 34.95 219 62.95 395 68.95 325
* Price for 40 pages, while international brands all have 20-26 pages in Base

11. Stay with 20 pages
Base Index Base Index Base Index Base Index
A5 195 100 15.95 100 100 100
Small Square 21 275 140 24.95 156 24.95 156 32.95 156
A4 Landscape 295 150 25.95 163 31.95 200 34.95 165
A4 Portrait 295 150 25.95 163 31.95 200 34.95 165
Big Square 30 495 250 34.95 219 62.95 395 68.95 325
* Price for 40 pages, while international brands all have 20-26 pages in Base

12. Prices for booklets and books
are balanced
PhotoBooks Booklets
Base Index Base Index
A5 249 100 59 100
Small Square 21 379 152 89 151
A4 Landscape 395 159 99 168
A4 Portrait 395 159 n/a
Big Square 30 695 275 n/a

13. New policy: photo cover is
superior
Booklet Hard Leather Cover Hard Photo Cover
Min/Max Pages
8/24 20/120 40/120
(Step)
A5 59/4 195/4 245/4
Small Square 21 89/5 275/5 375/5
A4 Portrait 99/5 295/5 395/5
A4 Landscape 295/5 395/5
Big Square 30 495/8 695/8

14. Price for A4 hard cover dropped,
9 changed to 5
Hard Leather or Linen Cover Hard Photo Cover
New Old New Old
A5 195/4 never existed 245/4 249
Small Square 21 275/5 never existed 375/5 379
A4 Portrait 295/5 365 395/5 395
A4 Landscape 295/5 375 395/5 395
Big Square 30 495/8 never existed 695/8 695
A3 Landscape deleted 795 never existed never existed

15. Samples & Themes for sales and
online promo
Booklet Hard Leather Cover Hard Photo Cover
Min/Max Pages 8/24 20/120 40/120
A5 Love 8 + Kids 24
Small Square 21 Family 20 Vacation 40
A4 Portrait Catalog 24
A4 Landscape Portfolio 80
Big Square 30 Wedding 120

16. Delivery Policy
• Current:
• all orders above 95 UAH free delivery all Ukraine
• Issues:
• UkrPoshta does not provide for exact delivery costs,
thus making customers to pay extra
• Financial losses in the range of average check of 96-125
UAH (photos only)

17. UkrPoshta
• FOR CUSTOMER
• Unclear delivery dates (±2 workdays)
• Unpredictable fee (breaking the promise of Free Delivery)
• Unable to open/check unless paid (breaking COD promise)
• FOR US
• Has it been delivered? Paid? RETURNED?

18. Express Production and
Delivery
Regular Express
2 workdays
Production 5 workdays
+150 UAH
Delivery Kiev 1 workday 1 workday
Delivery Ukraine 5 days 5 days

19. Shipping Options
Kharkiv,
Other oblast
Kiev Dnepropetrovsk, Rural
centers
Odessa
Service COD COD COD COD
Novaya
Carrier Courier Courier
POchta
UkrPochta
Costs 23 60 80+ 33 + client pays 20-30
Timing same day next day 1-2 days 5-8 days

20. Open questions
• How can we stimulate a customer
• start a new photobook more often?
• order another photobook asap after
he received his first one?

21. SuperPhoto has to compensate for the
lack of business infrastructure