Shutterfly Growth Surge

Shutterfly’s growth was up 10% last quarter, doubling the analyst estimate from the street (what do they know anyway, but I digress). According to the article in Motley fool

http://www.fool.com/investing/general/2008/10/30/shutterfly-ready-for-takeoff.aspx

not only is Shutterfly getting more customers, but those customers are spending more when they visit. The catch is, they are spending more on personalized products such as mugs, calendars, etc, and less on prints and photobooks. Could this catch on?

Market trends, or Holiday bliss?

It seems to me that even more of these type of personalized products will sell during the busy holiday season. Yet, at the same time, people generally have less disposable income as of late, I can’t personally see the need for yet another coffee mug, this one with photos from my recent trip to Hawaii on it. Then again, I can get prints anywhere, and there are only so many places that can put my digital “mug” right on a coffee mug for $10. Still, I wouldn’t quite agree that this will lift Shutterfly’s revenue to yet unforeseen heights in the long run.

In these market conditions, my money is still on Clark Color Labs, who offers the lowest print prices around, at 8 cents each. Even on Sale, Kodak and Shutterfly and the others still don’t come close to that price.

For more information or to see a detailed review of Clark Color, check out

www.photosharingreviews.com/reviews/

Aaron


3 Comments

  1. Gaurav Mahajan
    Posted January 11, 2009 at 8:15 am | Permalink

    Shutterfly has attracted a large no of custmers due to its lucrative offers. It is foreseeing a great future certainly.

  2. Xio
    Posted January 11, 2009 at 12:09 pm | Permalink

    Shutterfly.com has been doing very well. I see them getting alot bigger.

  3. historytrivia
    Posted January 11, 2009 at 2:21 pm | Permalink

    Who would not love to make something nifty and give away? I like to put photos of kids on calendars. I guess we can learn from shutterly that the key to success in any kind of business is providing good service to people at affordable price. I think free membership account and free photos are what drawn people to shutterfly.

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