Pricing Your Adhesive Products for Optimal Profitability. Professionals of the adhesive sector have this say that “they are in a sticky business”, and that’s not far from the truth. The products they sell are made from natural or synthetic sources and have passed through processes that make them bind easily to other surfaces. Not only do they stick to most other materials and surfaces, but they don’t fall off their hosts easily like other non-sticky items.
Adhesives are available in a wide range of forms such as pastes, films, tapes, liquids, and solid forms. They are used extensively for various adhesive applications and across many sectors. It is not all adhesives that work well or attach properly to all surfaces.
Usage for value based pricing for adhesives
Pricing Your Adhesive Products for Optimal Profitability. Adhesives have a wide range of applications. Besides their industrial and technical usage, businesses and a host of other organizations use them for advertising in public spaces like train stations, malls, retail outlets, airports, hotels, corporate spaces, event venues, and corporate spaces.
Advertising is not the only way adhesives are commonly used. Different industries also convert these substances into other valuable forms that include:
Medical Products
In the medical field, adhesives are the standard material used to make non-woven fabrics which are then made into surgical gowns, gloves, and shoe covers. The use of non-woven material doesn’t end there. They are also used to make many of our vacuum bags, shopping bags, landfill liners, and tarps.
Glossy Art Prints
It’s common for graphic arts companies to use adhesives to create many of the catchy, shiny art images that populated many of our suburbs and cities. There is a special class of adhesives called high-gloss laminating adhesives. These materials are extremely good at producing stunning visual effects that catch the eye and interest customers.
Bookbinding
The component that holds the pages of many books together is usually an adhesive. And there are high-quality adhesive products that, when used in bookbinding, won’t stain or reduce the aesthetics of the product, be it a magazine, novel, or textbook.
Huge Potential for Adhesive Graphic Product In 2021
Digitalization and the internet have caused many uses, including the above applications of adhesive products, to go into decline. However, personal and private use in homes has great potential and presents the advantage to price higher.
For example, in homes, the decorative wallpapers, stickers, or wrapping papers for furniture are still made with adhesive materials. Even blurry adhesives for glass used to provide privacy have seen a huge demand this year.
One of the main factors that contributed to the increased use of adhesives in the house is COVID-19. Because of the virus and the stay-at-home order, many people had to work from home, leading to the creation of home offices all over the world.
This act, in turn, created an acute need for graphic adhesives that would be used in making these dedicated workspaces presentable for Zoom and other video meetings. Even school children and college students had to put up attractive corners in their homes for online school.
Every one of these people (workers, students, Tiktokers, YouTubers) collaborating or doing business with the outside world from home has caused a spike in the need for adhesive graphics products.
And data reports from industry analysts confirmed this growth. Earlier this year, projections released by ResearchAndMarkets showed that the global Self-Adhesive labels market increasing at a CAGR of 5.9% between 2019 and 2026 is set to reach USD 65.59 Billion by 2026.
Another industry report by MarketsAndMarkets gave an almost optimistic report of the self-adhesive market. The research firm projects that the market size of the self-adhesive label industry will grow from “USD 46.5 billion in 2020 to USD 59.2 billion by 2025, at a CAGR of 4.9% from 2020 to 2025.”
Pricing Your Adhesive Product Right
If you’re a manufacturer of adhesive graphics, one of the best ways to get the best and sustainable pricing for your product is to use a value-based pricing strategy. Unlike cost-based pricing, which sums up all the costs of producing a product and adds a certain fixed percentage, value-based pricing sets prices primarily on the value customers place on a product or service.
Although the product may have an appreciable demand now, that doesn’t mean all manufacturers are currently reaping great gains.
To position your business to effectively tap into this ongoing “bounty”, you need a pricing tool that will help you manage the thousands of references and prices that are part of your product range. You may argue that getting optimal prices is somehow hard because some of your products have become commodities.
That is a fact that many businesses have to deal with. But what about those products similar to a “diamond-in-the-rough” that still retain their high value? Those products with valuable technical aspects like a longer-lasting adhesive capability (sticky for 1 year, 3 years, or longer)? How are you pricing these ones?
Do you have an effective strategy to get the best price possible for them without reducing sales?
Some businesses have niche products like adhesives that enable video or movie projection on glass. Current trends of a high number of video meetings and visual content consumption will create a growing market for this product and an increased willingness to pay.
Remember, not all customers place the same value on your product. The trick to more profitability and revenue is to understand your customers’ demographics, identify those who value your products highly, and what the rest buyers are willing to pay.
Now which customer is willing to pay which price for which product? That is a question that we are ready to help you answer.
Pricing Your Adhesive Products for Optimal Profitability
Key Contact
Baydhir Badjoko, CEO The Consultants bvba
+ 32 3 297 55 78 | badjoko@theconsultants.eu
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