Cimpress (CMPR) Fiscal Q4 2016 Earnings Call

posted in: Earnings Call, Notes | 0

Cimpress (CMPR) CEO Robbie Keane on customer expectations of the pricing of shipping their product 

“The market certainly has shifted in terms of what customers expect to pay for shipping. And so, we want to be right in the middle of the bell curve of the market. Now, our customers tend to be small businesses who use shipping services like DHL or UPS or whoever and they know very well the cost of shipping a product. And they would expect that we would have better cost than them. So we have to align with that. And they are, our research says our customers are perfectly willing and happy to pay what they perceive is a fair transparent price for shipping. What they don’t want to do is pay something that they say is materially above the cost that they themselves can buy from this small business just because we include our processing costs in that overall amount. Now, there are companies that are going towards no shipping charges. We’ve tested that and we do not see that that is something we need to go to. Our pricing stays very, very value based as a holistic pricing including the product cost itself. But the Vistaprint customer seems to very much focus on fairness and transparency as opposed to free.”