It's Distributors Vs. the Desktop
Distributors can prevail over printer technology to increase cut sheet sales
FOR YEARS NOW, the underlying story in the cut sheet world is one of man against machine. As end-users entertain ideas of saving money by churning out forms on high-tech laser printers, they are depriving distributors of cut sheet business. In essence, distributors are fighting against the desktop—a situation causing some to push cut sheet promotional efforts further down the priority list. And, recent advancements aren't helping.
"The widespread use of laser printers means individuals can use cut sheets to create forms at their desks for applications that previously required computer programmers and large continuous form printers," said Rick Vullo, manager, Hospital Forms & Systems, Dallas. "Hospital Forms & Systems recently made innovations for improving cut sheet integrated labels including pattern adhesive labels that lie in flat stacks and have adhesive-free edges, which feed more efficiently into high-speed laser printers."
Despite the seeming rise of printer technology, profits still exist for distributors as do opportunities to convert laser printer users back to the purchasing world. "It's just more cost-effective to purchase cut sheet products through a distributor," said Rick Pasco, salesman for Data Papers, Muncy, Pa. "When end-users factor in the time, the cost of toner, maintaining inventory and everything else that goes along with creating their own forms, they soon realize it takes a lot of time, energy and money to do it all in-house. Distributors can focus on this fact to win back cut sheet sales."
Going Up
While a percentage of cut sheet business continues to be cyclically lost and regained by those investing in laser printer technology, there are products experiencing a steady and consistent increase in demand. Some of those forms are currently circulated throughout the health-care industry, reported Vullo.
"The demand for cut sheets is increasing all the time despite continued technological advancements," he said. "I'm talking specifically about the forms we manufacture, such as integrated membership cards, which are used by many associations across the country, and multiple-use integrated label cut sheet forms—such as picking tickets—which include address labels, product information and instruction sheets."
Other hot commodities right now, he added, include twin-web pharmacy prescription forms—bearing drug information and warning labels—as well as forms consisting of narrative information about drug usage and side effects.
Hospital Forms & Systems manufactures a number of cut sheet products, including laboratory mount sheets, integrated cards, integrated labels and twin-web forms. "Mount sheets have been used by hospitals, and in some instances, by other industries as well for many years, and this demand has not changed significantly," said Vullo.
Check products are also experiencing an increase in demand, said Pasco. "We've been selling a tremendous amount of laser checks lately," stated Pasco. "In some cases, we're producing stock checks and selling them a carton at a time."
Pasco noted that end-users purchasing checks run the gamut of payroll agencies to restaurants such as TGI Fridays. "The types of customers seeking check products are endless," he said. "And, these days, the idea is to stay one step ahead of the crook, so end-users are investing in checks with multiple layers of security such as thermochromic ink, watermarks and void pantographs."
In addition, Frank Michael, plant manager for Data Papers noticed a trend in the way end-users are purchasing cut sheets.
"Larger cut sheet orders are going roll-to-roll," he commented. "They involve less processing and handling on the end-user's part. We don't see much of a drop in the amount of cut sheet work that we produce. Oftentimes, our large cut-sheet orders go to mail houses, which do most of their work for big financial companies. By ordering a roll, they can get upwards of 50,000 to 60,000 forms at a time."
Bill Prettyman, president and CEO, Wise Business Forms, Alpharetta, Ga., said he, too, has noticed a trend occurring within the cut sheet world.
"This product has evolved by offering other services with it," said Prettyman. "For instance, through our E-business software, distributors and end-users can now enter orders online and receive their products even faster than in the past. We started out offering a quantity range in the short-to medium-run, but now offer longer runs as well, especially with our recent acquisition of Woodbury Business Forms and its longer run capabilities."
Another evolution for Wise Business Forms is offering value-added statements and invoice processing through its Digital Services Group. "Now, we not only print the cut sheets, but accept the data from the end-user and print the variable information on the statement or invoice cut sheet," said Prettyman. "To make this a one-stop turnkey solution for the distributor, we also provide the envelopes, print the inserts in our commercial division, insert all of these pieces and then, mail them for the end-user."
The advantage for distributors, he added, is they can sell a program once and have it repeat daily or monthly for years. "This provides a tremendous residual income opportunity for distributors," he said.
Inside Tips
Apparently, the market for cut sheets is fairly strong, but distributors still question how
to pitch them most effectively.
"My advice is pretty generic," said Vullo. "Find out what your manufacturers' capabilities are and learn everything you can about your customers. When you know both, you may be able to design forms and systems that will improve your customers' operations while gaining their respect, trust and, of course, their business."
Prettyman added that any statement-purchasing end-user is a candidate for statement processing. "For example, banks, credit unions, utility companies, manufacturers, distribution companies and retailers are all prospective customers," he said. "It may seem like common sense to target these types of customers, but they are easily overlooked in the scheme of things."
Future Outlook
As far as how cut sheet product sales will fare in the distributor-against-the-desktop struggle, interviewees were optimistic.
According to Prettyman, the demand for cut sheets will steadily increase as they continue to displace other, older form products—primarily continuous forms—still being used today. "And there will be a trend to refining and improving cut sheet products to stay one step ahead of new innovations, such as pattern adhesive integrated labels that feed more efficiently through high-speed laser printers," he said.
Vullo agreed, adding that technological advances have dramatically and steadily reduced usage of multiple part and continuous forms. "A majority of the new forms that will be created in the years ahead will be cut sheet forms, which will replace multiple part and continuous forms," he said.
All interviewed concurred that the cut sheet business is still thriving. Whether distributors choose to add value to that business for greater profit, or target prospective customers in new and different ways, it was the general consensus that profits are plentiful in the world of cut sheets and distributors can prevail over printer technology.
By Sharon R. Cole
- Companies:
- Data Papers
- Wise Business Forms