Promodata Announces Transition to Standardised Add On Pricing Model

Promodata is dedicated to revolutionising the promotional industry in Australia and New Zealand (AUNZ) by standardising product data formats. This initiative, which has already made significant strides with the implementation of standardised categories, attributes, and colours, is now focusing on standardising pricing models. This change promises numerous benefits for both suppliers and distributors.

Current Pricing Models

Built Up Model:

– Description: Pricing includes both the product and decoration costs.

– Example: Pen with 1 colour print, 1 position.

– Challenge: To present a comprehensive view of available options, every possible variation must be formulated and displayed.
For example, combinations like Print 1 col 2 pos, Print 2 col 1 pos, Engrave 1 pos, Engrave 2 pos, Digital print 1 pos, and so on.

Add On Model:

– Description: Base pricing is presented, typically undecorated or with core decoration (e.g., 1 colour print, 1 position). Additional costs are then provided for upgrades and options (decoration, packaging, kitting, variations, etc.).

– Advantages: 

  – Suppliers can quickly and easily provide pricing for all possible product options, as the same pricing structure can usually be applied across multiple products or their entire catalogue.

  – Distributors can swiftly configure quotes to meet client needs. It also facilitates easier product comparisons.

  – Consistent pricing models benefit distributors by allowing them to focus on a single “formula” when developing technology platforms. It also simplifies staff onboarding and training.

Transition to the Add On Model

Implementation Date: From August 1st, 2024, Promodata will begin transitioning all suppliers to the Add On pricing model, except those who are already using this method.

Acknowledgement: Promodata recognizes that this shift may cause initial difficulties for some users. However, the long-term benefits are substantial as the promo industry evolves in the digital landscape.

Benefits of Standardised Add On Pricing

1. Efficiency for Suppliers:

   – Streamlined pricing across products and categories.

   – Simplified management of product options and upgrades.

2. Empowerment for Distributors:

   – Enhanced ability to create customised quotes.

   – Easier product comparison and selection process.

   – Improved integration with technology platforms.

3. Scalability and Training:

   – Consistent pricing models facilitate scalable business operations.

   – Simplified training and onboarding for new staff members.

Promodata’s commitment to standardisation is set to bring lasting improvements to the AUNZ promo industry, fostering a more efficient, transparent, and competitive marketplace.