Sales Tip From Dirk:

The Concept of Subtractive Pricing

One pricing strategy often overlooked is the concept of subtractive pricing. Most of us are conditioned to think about add-on sales, and that should always be an important part of a solid pricing strategy. Add-ons could include frames, wallets, albums, additional prints etc. Subtractive pricing does just the opposite by adding the additional product into the price on the front end, and requiring your client to take action to remove this product from the sale.

One example is frames. Lets say you have a line of products that you have difficulty selling frames for - say a small composite of images - lets use a 4 image, 4x10 composite in this example. Using a subtractive pricing strategy, you would add the frame price to the composite price, and that would be the "default" method of purchase. You could list the composite like this example:

4x10 Composite with Frame - $XXX
(without frame - $xxx)

For a client NOT to get a frame would require a conscious decision on their part. So instead of causing them to think of ADDING a frame, they have to make a decision of REMOVING the frame from their order. This method is proven to build larger sales - give it a try sometime!

Dirk Witt
National Sales Manager
Mid-South Color Labs, Inc.
496 Emmett St.
Jackson, TN 38301
731/422-6691
800/221-3920
dwitt@midsouthcolor.com