Add On To Print Sales
Distributors find increased profits through service programs.
Distributors can add to their sales of printed products by offering other services to meet the changing needs of their clients. Advances in technology, downsizing and tightening office space provide distributors with the opportunity to offer lucrative services such as warehousing, graphics design, distribution and Internet business solutions.
One distributorship that has taken advantage of this opportunity is the Atlanta-based FIA Corporation. The company's major products include forms, envelopes and commercial printing, but customers have also a multitude of services to choose from.
In addition to printed products, FIA offers warehousing, on-demand print and supply, forms design, Internet ordering, distribution, pick-and-pack fulfillment, in-house graphics, product delivery and shredding services.
President Brad Dorsen stayed ahead of the industry trends by starting distributor services in the late 1970s and warehousing—which took off in the mid 80s—in 1978.
"It started with a customer who wanted to order a larger quantity of items, but didn't have the space. We stored the extra boxes in a back corner of our office and it mushroomed from there," he explained.
The company has moved three times to acquire additional space as the need for warehousing grew. Noted Dorsen, "We now have two warehouses totaling 12,000 sq. ft. We can also lease additional square footage at a discount when we need it."
FIA began distribution services a year after it started warehousing. "We grew from a couple of boxes to handling approximately 50 packages a day," Dorsen said. Today, the company uses three vehicles for distribution, in addition to UPS and Milan Freight Line.
In 1978, increased demand also justified the establishment of an in-house graphics department. "We were using an outside graphics typesetting service, but if there was a typo, we would have to send it out again," Dorsen noted.
FIA now offers a complete in-house turnkey graphics system. "We employ a full time staff and can add a night shift when things get busy," stated Dorsen. "A customer can come in with an idea and leave with a proof. We've even had customers send us sketches to see if they were on the right track with their idea."
St. Louis Business Forms, Fenton, Mo., has followed the trend of offering additional services as well—including a bar code design bureau and forms management. The company will also install software and hardware at a customer's site.
In 1992, Bill Raible, CEO, recognized bar coding as a growing market. He wanted additional revenue sources for the company as business forms sales started to flatten out. Today the company's bar code service bureau offers thermal-transfer printing in both custom and generic formats.
"We use our easy label program—which formats the correct bar size and thickness—to design and input bar codes onto the labels," Raible explained. After the labels are printed they are shipped out on rolls, cores or fanfolded packs.
The company's on-site bar coding hardware and software installation service also includes support and maintenance. "If a customer already has a software program, we will try to integrate the bar codes with that programming," said Jeff Lange, a system specialist at the company.
In an effort to distinguish himself from competitors, Raible began offering forms management in 1990, thus transferring inventory records from paper to a database system. According to Raible, "Forms management provides an automatic inventory control system. A customer can view status and usage reports monthly or by the year. The big advantage is that it reduces the customer's inventory, because products are warehoused and shipped as needed."
The company added a new building last year to meet its growing warehousing needs. Although the forms management system keeps track of inventory, it is occasionally necessary to do it the old fashioned way—by hand.
"We have to view what's on supply and be the watchdog of what the client is using," said Raible. "Forms management is a growing area and in the long run it is a great way to maintain clients. Some clients have been with us for more than 35 years."
Cost of Services
Distributor services are usually paid for up front with a large order, however Dorsen does not charge separately for warehousing, distribution or shredding services.
"We offer free service for our long-standing clients," said Dorsen, explaining that warehoused items are usually paid in full and the client can earn a discount by purchasing large quantities. The customer understands that part of the service is built into the product price. An additional handling fee is charged for distribution.
According to Raible, "The company's service bureau pricing is based upon materials and labor. Forms management using ASI software is a no-charge service as part of our selling process, and installation of the bar code hardware and software is done as part of the material cost." He noted, however, that support after the sale and maintenance are charged.
Both distributors provide their services internally. "Our services are provided by our own staff with excellent customer service backup and our bar-code bureau is maintained by an inside technician," said Raible.
Although the Internet has diminished the need for some types of printed products, it has also generated a new demand in other areas, such as forms and database management, warehousing and graphic design.
Keeping in step with technological advances, Dorsen plans to increase FIA's Internet capabilities. "Within the next year, I would like to give all customers the ability to order via our Web site. Those who order from the site will receive a five percent discount. The Internet will cut down on costs, paperwork, errors and proofing stages, and those savings can be passed on to the clients," stated Dorsen.
Raible estimated the growth of his distributor services in the range of 25 percent to 30 percent annually and added that he plans to continue expanding current services.
"These services show a tre-mendous amount of growth potential as more and more clients require some type of bar-code support, either in house or as an outsourcing requirement," Raible concluded.
By Nicole Johnson