Takin’ It Old School
E-forms are exploding onto the scene. As a result, educational institutions operate by a different set of procedures today than they did when young adults of the MTV generation started to receive their college diplomas just a few years ago. For example, students can now take tests online, register for Internet courses, fill out financial aid applications via the Internet, and those in college can obtain semester grades from their school’s Web site. All of these acts eliminate the unnecessary costs of ordering traditional paper-based forms. In addition, the use of e-forms lowers expenses for keying data, printing and distributing. Add budget cuts to the mix, and manufacturers catering to this market could find themselves having to tweak their business model.
More than 80 percent of states’ budgets are in trouble because of cuts and tax revenue declines. Despite President Bush’s plan to reform America’s high schools, in his budget proposal released in February, he suggested reducing federal spending on education by more than $3 billion. Therefore, more schools are teaming up with their states to find solutions yielding cost savings on educational products.
So, what does this mean for distributors who sell to this niche market? Despite the increasing popularity of e-forms, profits still exist in paper forms, including accident reports, attendance forms, cafeteria forms, demerit slips, financial aid forms, labels (for file folders), mailers, newsletters and registration forms. But, closing a forms sale, with colleges in particular, requires more effort than guaranteed money makers, such as e-forms, because many large schools often have in-house print shops. In fact, out of 202 universities surveyed by In-Plant Graphics, a sister publication of BFL&S, 57 percent have insource printing. On the other hand, elementary and secondary schools have centralized purchasing and distribution of forms. Nevertheless, these institutions may lack the ability to produce promotional items, thus requiring them to go to an outside source, proving that distributors’ persistence and ingenuity influence success.
In its vertical market report, the DMIA (Document Management Industries Association) offered these sales tips:
• Emphasize service
• Understand the processing equipment—from typewriters to computer systems
• Don’t use an overbearing sales pitch—potential clients are educators first, and may be uncomfortable with that type of pitch.
While many manufacturers believe printed education forms is a dying market, some have found success and anticipate a continued increase in sales. To gain a better insight of trends in this industry, BFL&S spoke with C. Julia Randall, director of marketing, Specialized Printed Forms (only from Ennis), Caledonia, N.Y. .
BFL&S: Lack of funding and budget cuts are ongoing concerns for educational institutions. What type of impact have these issues had on your sales?
Randall: We have actually seen a 4 percent to 5 percent increase in our overall sales to the education market over the last three years. In particular, there have been increases in some traditional products, such as grade report mailers and tamper resistant transcript paper, but, most notably, in the addition of direct mail pieces. The [mailers] sometimes promote the educational facility or promote financial products targeted to students.
BFL&S: How has the push for e-forms affected the sales of printed forms?
Randall: E-forms certainly have affected our sales, especially in the quantity and format of student loan applications. As recently as five years ago, we produced a couple million continuous student loan applications. Sales of that product have dropped significantly each year. For example, last year, we produced about 5 percent of what we produced 10 years ago. Eventually, that form was replaced by a booklet of forms, made on a rotary press, that are run through a laser by the individual user. Still, as I mentioned earlier, our overall sales to this market continue to increase despite this large loss.
BFL&S: How is your company adapting to the changes of the
electronic age?
Randall: We have added products, such as pressure-seal mailers, to our capabilities to meet the needs of end-users as they transfer their internal printing process from dot matrix to laser and ink jet printers.
BFL&S: What trends are currently changing the face of the education market?
Randall: End-users need to self-promote to get noticed in a competitive market. In addition, because there is a need for confidentiality and protection of student information, end-users need to produce documents that are tamper resistant. It is important to communicate efficiently with potential students, [current] students and alumni.
BFL&S: What advice can you offer distributors looking to break into this niche market?
Randall: Look to both the marketing, as well as forms procurement personnel. If possible, form an alliance with both or act as a conduit. Marketing can enable traditional forms to appropriately present the facility’s image [with color, quality, etc.]. And, marketing will have the need to promote the school consistently.
BFL&S: What are your predictions for the future of this market?
Randall: In looking at the trends we have experienced over the last few years, I expect incremental increases in this market. As the industry continues to move away from some paper-based forms, there will be an increase in promotional/direct mail campaigns. Distributors can aid end-users by developing products that function best for their facility and their clients (e.g., students, internal staff, etc.), even if it is with a paper-based product.
- Companies:
- Specialized Printed Forms