Offer Remedies in Health Care

While selling these products to large hospitals might seem to be a tempting proposition, both Freimuth and Posey prefer distributing to medical offices.

This is because hospitals generally opt for the lowest bidder when purchasing printed products, said Freimuth. And that usually doesn't work to an independent distributor's advantage. "Small practices, on the other hand, provide more loyalty," he said.

Posey agreed, adding that hospitals demand a lot of work but only generate small gross profits.

Another factor to consider when selling into health care is technology. For instance, said Freimuth, since laser printers have become so popular, color-coated products have almost disappeared, which hampers the sale of customization pieces.

"Distributors should stress the importance of customization pro-ducts," said Freimuth. "They not only provide better advertising for the client, but better margins for the distributor."

Posey added that many companies are also moving away from paper-based statement mailers to electronic ones, which has resulted in South Shore losing some of that type of business. "Even still, we've managed to retain the same volume," said Posey, adding that health care remains a worthwhile venture.

"We sell well over a million health-care forms a year, so the health-care market can yield great profits," Posey concluded.

By Sharon R. Cole