Full Speed Ahead
When it comes to wholesale printing, always keep in mind rapid turnaround times, availability and the ability to change and adapt.
Zarik Megerdichian, CEO of Glendale, California-based 4over, said those are the things that count today in the wholesale printing arena. So, according to him, forget the tradition of extended press checks and proofing of jobs. Those are dying trends.
"Speed, convenience and innovations are the name of the game today," Megerdichian said.
Extended presses aren't the only things to abandon. Companies also must change the way they think in terms of quotes.
Lisa Hoffman, product manager for Arlington, Texas-based PrintPlace.com, said the mentality of taking two to three days to return a quote for a printing job is dying out due to the instant and any time accessibility to online printing companies.
"Even if a project can't be 100 percent configured online, PrintPlace.com and UnitedGraphics.com return custom quotes within four business hours. [Another trend] dying is the mentality that online printing is only for gang-run business cards, and [the idea] that quality is secondary to price."
No surprise, stationery products also are on a steady decline due to the increase of e-mail and other forms of communication, explained Daniel Gaugler, director of business development for Livingston, Montana-based PrintingForLess.com (PFL).
"The trend of just providing cheap, glossy card stock with little or no service is going away," Gaugler noted.
Instead, companies should be changing and developing new strategies and products on a regular basis.
Sam Vignjevic, director of Greenville, South Carolina-based growll.com, said his company is always striving to improve its equipment and processes. "While we emphasize keeping costs down, our focus stays on the customer and what we can do to improve their experience," he remarked. "Automation plays a key role in giving our customers the ability to service themselves as much as possible without having to wait for an answer. Customers not only can do their own proofing and tracking of orders online, but they are even automatically notified if they have forgotten to upload or approve their artwork once their order is placed. This automation also has allowed us to utilize our customer support team to become more dedicated to unique or custom orders. We are able to provide custom print shop support with wholesale pricing to our clientele."
In terms of equipment, growll.com recently purchased an Indigo 7000. Vignjevic explained this all-new Series III press allows customers to enjoy increased productivity and profits, enhanced print quality and media formats and a choice of innovative remote digital front-end workflow solutions that provide simplified operation and production management. In addition, the company upgraded its server storage space to accommodate the growing number of customer files and digital data used when orders are placed. Improvements also are constantly being made from the IT standpoint since it is the cornerstone of an e-commerce business operation.
Hoffman chimed in, saying long gone are the days of wholesale printing being primarily purchased by very experienced print buyers from a select group of manufacturers who were known only to those in the industry.
"The accessibility to pricing and faster response times have revolutionized wholesale printing by erasing former geographical and informational boundaries. It no longer matters where your print manufacturer is located, as the economies of better pricing combined with faster turnaround times have taken freight costs or project time constraints out of the equation," she said.
PrintPlace.com also acquired new equipment. Last year, it added sheetfed printing, UV coating and bindery equipment to increase capacity for orders. Also, in 2010, the company acquired a second facility specializing in custom and high-volume orders. The renovations and upgrades to the facility included full heatset web, half heatset web, sheetfed and full bindery including saddle stitch and perfect binding.
Those aren't their only improvements.
growll.com is moving toward initiatives that include black-and-white digital products as well as additional booklet sizes and an inventory system, Vignjevic said.
Since integrated print and direct mail online ordering and management are growing segments, Hoffman explained the company will be enhancing its mailing services and options this year. In addition, PrintPlace.com also will continue to expand its heatset web printing online ordering process to provide unprecedented ease of quoting and ordering longer run and higher quantity sheetfed print projects.
Along with the innovations and developments mentioned, there are even bigger trends happening.
One is simple. Vignjevic said the greatest trend is more competition.
"Barriers to entry have come down such as the cost of websites and software," he commented. "Other printers in the market are constantly striving for quicker turn times, more competitive pricing and greater customer support. Advertising efforts have noticeably increased."
According to Hoffman, online printing will continue to grow in the wholesale market, as pricing is instantly available, and ordering is easy.
"It's up to print buyer[s] to decide how much interaction and assistance they prefer," Hoffman explained. "With our websites, the expertise is available but we don't force the customer to contact a person to manually place, check status or proof an order. For the end-user, print resellers will continue to play a vital role as long as they are offering value-added services. For our print reseller customers, this often translates to graphic design, overall marketing management or full-service account management services. Print buyers want their products to be inexpensive, fast, high quality and with top-notch customer service, whether they are the ultimate user or a value-added reseller of wholesale printing."
Furthermore, she said turnaround times will continue to get faster as print buyers become more conditioned to the instant access provided by online quoting and ordering. PrintPlace.com now offers same day turns on all of its coated stock products, including plus-cover booklets and calendars. Regardless of what companies are doing, they must keep on top of marketplace demands.
PFL is keeping up with the changing marketplace demands by becoming more lean and efficient and adding value to every print job through additional services, expanding product offerings and by using small (1/4 sheet) presses to maintain quality while remaining flexible, Gaugler stated. In addition, the company continues to invest heavily in employee training to make sure its reps are friendly, knowledgeable and "easy to do business with."
Realizing the challenges of the current marketplace, 4over has concentrated on opening new print facilities to reduce turnaround times and shipping costs, making high margin specialty products affordable, and using automation and technology for its customers' benefit, Megerdichian explained.
growll.com has changed to meet the growing demand of its customers to go green by becoming FSC-certified. And, Vignjevic reported it raised expectations with quality by becoming G7 Master certified.
But, what really sets one company apart from another?
Vignjevic said growll.com has always focused on customer service, especially the importance of customer service that is reachable.
"An actual person will pick up the phone when there is an issue or question on an order. We provide knowledgeable customer service availability Monday through Friday," he said. "Unlike our competitors, this support allows the customer to change an order even after the order is placed. We provide expedited turn times, instant online proofing and encourage our customers to promote their business by supplying a free non-branded sample pack to our members."
For PrintPlace.com, it's depth of manufacturing capacity, significant and continuing investment in technology and a commitment to quality and customer service, all backed by a team of loyal people who are excited about the future of the company and print industry, Hoffman noted.
It's many things for PFL. "What sets PFL apart from our competitors is our personalized, award-winning customer service," Gaugler said. "Every time we work with a customer, we strive to provide a remarkable interaction—from the first phone call all the way through to putting a great product into their hands, on time and with a smile.
"Another unique thing about PFL is our company culture. PFL is located in southwest Montana, but we serve customers all across the country. We have an on-site daycare and a dog-friendly workplace. We have built our business on sensible alternatives that both help sustain our local and global environment. PFL's responsible paper sourcing practices have earned us certification with all three of the globally recognized Chain-of-Custody Certifications: FSC, PEFC and SFI. Plus, our manufacturing facility is 100 percent wind-powered."
In regard to the future, a few words come to mind like "competition" and "technology."
"Technology will continue to be the determining factor in the growth of print providers," Hoffman said. "Progressive resellers will leverage the technology provided by their suppliers to become more responsive and efficient for their own customers. Print manufacturers who are unwilling to embrace this requirement will either lose market share, or partner with companies like ours to meet marketplace demand."
Vignjevic anticipates greater competition.
"Prices will continue to drop, forcing printers to come up with ways to produce less traditional products and think outside the box. growll.com will embrace this concept and expect to see growth," he surmised.
Megerdichian believes the economy will decide what holds next. "We believe that the economy is beginning to turn the corner, which means the demand for printed materials will strengthen over the next few years," he explained. "The market, however, will become increasingly competitive because of direct to retail, online printers, who cut the print broker/reseller out of the supply chain completely. The challenge, therefore, is for members of the trade print industry to retain their existing customers and attract new customers by offering innovative, quality print products at competitive prices."
Megerdichian added, as a result of the economy, 4over's customers have suffered, and by extension so did the company.
"The downturn in the economy meant that we had to make some hard choices with respect to where best to place our resources. We decided that continuing to expand our footprint and to develop new products and services would be more beneficial to our customer base in the long run. We have continued to devote significant resources in these areas, when conventional wisdom would have suggested otherwise. Because our resources are not unlimited, however, some minor cutbacks in services were necessary," he said.
PFL, for the most part, weathered the economic storm with record profits, Gaugler said.
growll.com, too, came out pretty much on top.
"growll.com has been fortunate enough to have a loyal, supportive customer base that allows us to continue to grow," Vignjevic remarked. "We have had no decrease in labor force, no down sizing or plant closings. We are in growth mode. We are expanding our marketing efforts and customer education through social media and direct mail campaigns. We look forward to seeing a high return on these, providing an increase in member sign-ups and sales from existing customers."
Hoffman said the current economic climate has positively impacted the progressive print manufacturers. "Budget constraints have forced print buyers to look online for solutions. As such, PrintPlace.com and UnitedGraphics.com are poised to provide offset printing at a speed, quality and price that is difficult to match."
And that's all it takes—new ideas, the ability to change and speed.