Pricing, Product & Delivery Policy

Dimitri PopovCEO

SuperPhotoJuly, 2009

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

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

What a satisfied customer wants from us?

• FINANCIAL

• Frequent flyer program

• Volume discounts (several copies, additional pages, various books)

• PRODUCT

• New features and formats

• Constant quality

• SERVICE

• Faster delivery

• Reliable delivery

• Help in design (professional or a class)

• Help in photographing (professional or a class)

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?

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

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

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

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/+1Large 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

Smilebook Pricing

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

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

Prices for booklets and books are balanced

PhotoBooksPhotoBooks BookletsBooklets

Base Index Base Index

A5 249 100 59 100Small Square 21 379 152 89 151A4 Landscape 395 159 99 168

A4 Portrait 395 159 n/aBig Square 30 695 275 n/a

New policy: photo cover is superior

Booklet Hard Leather Cover Hard Photo Cover

Min/Max Pages (Step)

8/24 20/120 40/120

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

Price for A4 hard cover dropped, 9 changed to 5

Hard Leather or Linen CoverHard Leather or Linen Cover Hard Photo CoverHard 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

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

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)

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?

Express Production and Delivery

Regular Express

Production 5 workdays 2 workdays+150 UAH

Delivery Kiev 1 workday 1 workday

Delivery Ukraine 5 days 5 days

Shipping Options

KievKharkiv,

Dnepropetrovsk, Odessa

Other oblast centers

Other oblast centers

Rural

Service COD COD COD CODCOD

Carrier Courier CourierNovaya POchta UkrPochtaUkrPochta

Costs 23 60 80+ 33 + client pays 20-3033 + client pays 20-30

Timing same day next day 1-2 days 5-8 days5-8 days

Open questions

•How can we stimulate a customer

•start a new photobook more often?

•order another photobook asap after he received his first one?

SuperPhoto has to compensate for the lack of business infrastructure