diff --git a/api/lib/prices.py b/api/lib/prices.py
index 9af2980..cda3862 100644
--- a/api/lib/prices.py
+++ b/api/lib/prices.py
@@ -80,11 +80,15 @@ def canvas_cm2_price(cm2):
     return cm2_price
 
 
-def package_price(width, height, market):
-    longest_side = max(width, height)
-    if longest_side > 119 and market.territory in ['US', 'EU']:
-        return 800
-
+def package_price(product_group, width, height, market):
+    if market.territory in ['US', 'EU']:
+        if product_group == 'canvas' and max(width, height) > 119:
+            return 800
+        elif product_group == 'poster':
+            if width > 110:
+                return 1100
+            else:
+                return 400
     return 0
 
 
@@ -103,7 +107,7 @@ def canvas_price(width, height, market, framed=True, designer=None, reseller=Non
     price *= market.price_adjustments
 
     # Package price should be added after market price adjustment but before other price adjustments.
-    price += package_price(width, height, market)
+    price += package_price('canvas', width, height, market)
 
     if designer:
         price *= (float(designer.pricepremium) / 100) + 1
@@ -133,11 +137,15 @@ def canvas_frame_price(width, height, market, reseller=None, rounded=True, inc_v
     price = max(price, 317.44)
     price *= 0.65
 
+    price *= market.price_adjustments
+
+    # Package price should be added after market price adjustment but before other price adjustments.
+    price += package_price('canvas', width, height, market)
+
     if reseller:
         price *= (float(reseller.pricepremium) / 100) + 1
 
     price *= market.exchange_rate
-    price *= market.price_adjustments
 
     if inc_vat:
         price *= market.vat
@@ -185,12 +193,8 @@ def poster_price(width, height, market, hanger=True, designer=None, reseller=Non
 
     price *= market.price_adjustments
 
-    # Price adjustment for high shipping costs to US and GLOBAL
-    if market.territory in ['US', 'EU']:
-        if width > 110:
-            price += 1100
-        else:
-            price += 400
+    # Package price should be added after market price adjustment but before other price adjustments.
+    price += package_price('poster', width, height, market)
 
     if designer:
         price *= (float(designer.pricepremium) / 100) + 1
@@ -218,7 +222,9 @@ def poster_hanger_price(width, market, reseller=None, rounded=True, inc_vat=True
     price += 50 # add 50 SEK extra since they are buying only the hanger
 
     price *= market.price_adjustments
-    price += package_price(width, 10, market) # we assume the poster hanger has a height of 10cm here
+
+    # Package price should be added after market price adjustment but before other price adjustments.
+    price += package_price('poster', width, 10, market) # we assume the poster hanger has a height of 10cm here
 
     if reseller:
         price *= (float(reseller.pricepremium) / 100) + 1
diff --git a/tests/lib/test_prices.py b/tests/lib/test_prices.py
index 7dde3f9..5ed4b2d 100644
--- a/tests/lib/test_prices.py
+++ b/tests/lib/test_prices.py
@@ -122,8 +122,6 @@ class TestPrice(unittest2.TestCase):
 
         self.assertEqual(299, canvas_price(width=40, height=40,
                                            market=sweden, framed=False, inc_vat=True))
-        self.assertEqual(277, canvas_frame_price(
-            width=40, height=40, market=sweden, inc_vat=True))
 
         self.assertEqual(731, canvas_price(width=80, height=80,
                                            market=sweden, framed=False, inc_vat=True))
@@ -160,6 +158,14 @@ class TestPrice(unittest2.TestCase):
             500, 500, market=sweden, inc_vat=False))
         self.assertEqual(222, canvas_frame_price(
             1, 1, market=sweden, inc_vat=False))
+        self.assertEqual(277, canvas_frame_price(
+            width=40, height=40, market=sweden, inc_vat=True))
+        self.assertEqual(154, canvas_frame_price(
+            width=40, height=120, market=us))
+        self.assertEqual(54, canvas_frame_price(
+            width=40, height=100, market=us))
+        self.assertEqual(578, canvas_frame_price(
+            width=40, height=120, market=sweden))
 
     def test_wallpaper_custom_inquiry_price(self):
         with mock.patch.object(Inquiry, 'market', nl):
@@ -245,8 +251,11 @@ class TestPrice(unittest2.TestCase):
             self.assertEqual(91, inquiry_price(inquiry, framed=False))
 
     def test_package_price(self):
-        self.assertEqual(800, package_price(150, 40, market=us))
-        self.assertEqual(0, package_price(150, 40, market=sweden))
+        self.assertEqual(800, package_price('canvas', 150, 40, market=us))
+        self.assertEqual(0, package_price('canvas', 150, 40, market=sweden))
+        self.assertEqual(1100, package_price('poster', 150, 40, market=us))
+        self.assertEqual(400, package_price('poster', 40, 40, market=us))
+        self.assertEqual(0, package_price('poster', 150, 40, market=sweden))
 
     def test_poster_cm2_price(self):
         self.assertEqual(0.08399104, poster_cm2_price(1))
@@ -264,3 +273,5 @@ class TestPrice(unittest2.TestCase):
     def test_poster_hanger_price(self):
         self.assertEqual(182, poster_hanger_price(30, market=sweden))
         self.assertEqual(438, poster_hanger_price(150, market=sweden))
+        self.assertEqual(66, poster_hanger_price(30, market=us))
+        self.assertEqual(176, poster_hanger_price(150, market=us))