Pricing on promotional products can be confusing, especially if you’re looking to get the best value for your money and aren’t sure what your options are. The truth of the matter is that there’s no one right way to price Promotional Products NZ, but in order to get the most out of them you need first to understand how pricing works in this category. The great news is that once you understand how pricing works, you can make better decisions about which options will work best for your budget and needs, leading to greater success down the road!
Understanding the Basics
Before getting into how pricing on promotional products works, you should start with some basics. All promotional products can be separated into one-off and multi-use items. One-off items are used only once, while multi-use items can be used many times before being disposed of.
Cost Per Thousand (CPM)
In traditional marketing, CPM refers to cost per thousand impressions. For example, if a magazine ad costs $100 and it reaches 100,000 people, your cost would be $1 per impression. With promotional products pricing, CPM is calculated in a similar way. If you print 500 pens at a cost of $1 each and sell them for $2 each, your price per impression is calculated by dividing 500 by 2 to get 250.
Cost Per Acquisition (CPA)
This is, by far, one of the most effective ways to calculate promotional products pricing. When you purchase promotional items to give away, you’re typically trying to get recipients of your giveaway items to do something that benefits your company in some way.
Cost Per Lead (CPL)
Most promotional products nz companies use a Cost Per Lead (CPL) model. With CPL, companies pay for each qualified lead that comes in response to an offer via a printed coupon or online at their website. The more leads they produce, the lower their unit cost is. These leads can be collected over time, reducing upfront costs. While it may seem like you’re paying more per item if you order higher quantities, you’re actually paying less per item when you take into account all of your potential customers. This means that it makes sense to order larger quantities of items when using CPL as your pricing model.
Setting An Appropriate Budget
Before you even start looking for promotional products nz, it’s a good idea to know your budget and how much of that budget you’re willing to spend on them. Keep in mind that branding companies aren’t going to work with any company that doesn’t want to invest in branding and they won’t tolerate being nickel-and-dimed by a client. You also don’t want to be so tight with your money that you can’t find anything worth buying. When setting a budget, be sure to include all costs associated with purchasing promotional items: shipping costs (if applicable), customising costs etc.
