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Printing paper goods
Printing paper goods may not sound like the best business to get into these days, but Hammerpress is nonetheless carving out a niche in this old industry. And they're doing it by returning to old technology. Most of today's printing firms use computerdriven graphic design techniques and printing processes. But Hammerpress creates greeting cards, calendars, and business cards that are hand-crafted by professional artists and printed using traditional letterpress technology. When it comes to competing, this old-fashioned process presents both opportunities and challenges. While Hammerpress's products certainly stand out as works of art, the cost for producing such goods is considerably higher than the industry average. This video illustrates how Hammerpress employs dynamic pricing techniques to meet the needs of various customer segments and thrive in a competitive environment. After viewing the video featuring Hammerpress, answer the following questions:
1. How does Hammerpress employ the concept of dynamic pricing?
2. Discuss Hammerpress in relation to the three major pricing strategies. Which of these three strategies is the company's core strategy?
3. Does it make sense for Hammerpress to compete in product categories where the market dictates a price that is not profitable for the company? Explain.
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