The trick is to identify key markets and then add value through service and related products.
It may have seen its heyday come and go but, according to many, continuous product is still a viable profit center for distributors. The key is in paying attention to where and how it's used.
For most manufacturers, sales volume on continuous is stagnant or suffering a slight decline, but they say that's no reason to write off this traditional product.
"Our overall sales are solid for the past three years, though the percentage of continuous in our sales volume is down, but it's still a majority of our business," said Richard Miller, sales manager for Calibrated Forms, Columbus, Kan., an Ennis company.
Short-Run Competition
Unit sets and cut-sheets have filled in where continuous sales have eroded, Miller said, although he's running higher-volume orders in continuous. "We've seen a shift in volume to longer runs, into the millions. Short-run continuous is getting much more competitive," he said.
As small businesses who place short-run continuous orders see their line printers and other hardware becoming obsolete, "it forces a transition to laser cut-sheets," Miller said. The five-part and six-part continuous orders are "few and far between," although manufacturing companies and transportation industry businesses still provide a market, he noted.
The shrinking pie on that niche has made some forms producers "very, very hungry and extremely aggressive. They have the ability to turn orders around very quickly," Miller said.
This strategy has worked for Rotary Forms Press, a $13 million manufacturer in Hillsboro, Ohio. Marketing Manager Cathy Castner said that over the past three years, "We've maintained sales, but have been very aggressive to do that. It's very competitive."
Rotary Forms Press has entered into competitive contract pricing to get more variety of work and has seen a mix of long- and short-run orders, with many orders in the 10,000 to 15,000 range.
"We also get a lot of desperate companies who needed the order yesterday, and we're able to save some of them," Castner said. With 15 presses offering six depths able to accommodate odd sizes, as well as jumbo rolls, the manufacturer can often turn a new job around in 48 hours.
At the other end of the spectrum, Maggio Data Forms, Hauppauge, N.Y., has seen sales grow to over $30 million as it has picked up more market share. Continuous multi-part carbonless and 50˝ roll products have both seen growth, according to Jim Maggio, co-owner.
Miller has seen growth in continuous one-part forms as end-users have gradually scaled back the number of copies they need. Maggio concurred, "Every day, continuous faces a loss to cut-sheet product and, in some cases, to the Internet. Former two- and three-part forms are now one-part for the customer, while the end-user keeps an electronic file copy."
In another move to shore up continuous sales, last year, Calibrated began offering four-color spot continuous forms after noticing that they were unable to bid on many jobs requiring more than three colors. They've been pleased with the volume of orders for such product, according to Miller, echoing sentiments from other manufacturers about this niche.
Maggio Data Forms, which can print five colors and has a UV dryer on every press, has seen growth in continuous product destined for direct mail and subscription fulfillment.
Many Applications
Forms producers pointed to a number of vertical markets that can still be mined for continuous orders. Castner noted that both health-care and education markets have maintained volume in continuous.
Banks, brokerage firms and insurance companies are strong markets, Maggio said, gravitating toward roll product. Shipping companies, freight carriers, the telecommunications industry and companies that handle outsourcing of invoices, statements and other documents are also lucrative markets, he said.
Government, both state and federal, is another viable avenue, Miller suggested. "It's very competitive, but steady, and we've landed some good orders," he said. Usually for large quantities, the orders also frequently require composition changes due to new regulations, even if the specs remain the same, he added.
Marrying traditional continuous with newer products and services has also kept sales going, manufacturers say. Adding value with blow-on labels, ID cards, coating, bar codes, form/label combinations and variable imaging can be part of a solution sales strategy for distributors. In addition, Miller noted, as part of a national company with deep pockets, he can offer distributors modern services, such as digital warehousing and online ordering and tracking. "Bundling with services gives distributors an edge. I have a 40,000-sq.-ft. humidity-controlled warehouse loaded with product that I store for free," Miller said. "That's better environmental control than storing it on the customer's dock and gives the distributor the ability to profit on it."
Continuous Consulting
Miller's advice to distributors? "Don't look away from continuous." Because it's such a traditional product, distributors tend to overlook it and just ask to bid on existing orders, forcing margins down, he said.
"You need to be willing to consult on it the same as with direct mail or any other product," Miller said. By helping the end-user to run better and smarter with the right continuous product, distributors will build both sales and loyalty. "Continuous is not a dazzling product, but some things are very positive," he said.
By Janet R. Gross