Competition is tough all around. Even quick printing chains, which seemingly pummel their competitors, face off against a host of small commercial printers, whether they be chains, franchises or independent businesses. But, profit and growth remain viable for both quick printers and small commercial printers. According to Quick Printing magazine’s 2007 Annual Franchise Review, the industry’s total 2006 sales were up 21.6 percent over 2005. And, as larger commercial printers expand their services, quick printers and smaller commercial printers are finding similar avenues to retain a competitive edge.
To get an overview of today’s quick printing market, BFL&S spoke with John Giles, an industry consultant who focuses on prepress issues and sales opportunities utilizing VDP (Variable Data Printing) and Web-to-print technologies. Giles is a consultant for Certified Printers International (CPrint), a printing franchise offering training and information products and services on new printing technologies. CPrint was developed by Crouser & Associates, a Charleston, West Virginia-based business consulting firm.
BFL&S: What do you see as the biggest industry shifts in quick printing this year?
Giles: The entry costs to providing higher-end variable data printing and Web-to-print services are dropping to allow small printers to add these new services. As print buyers continue to order shorter runs, the quick [or] small commercial printer is
positioned to compete against much larger companies. Quick printers are positioned to take advantage of the trend [toward] short-run work. Another key marketing advantage is the quick printer’s experience with dealing with customer-created files.
BFL&S: What new products will enhance quick printing services?
Giles: VDP and Web-to-print [technologies] are giving quick printers more [sales opportunities]. Special PDF drivers that help customers automatically create printable files make it easy for customers to create documents and buy printing. [Color digital printers under 70 ppm] with robust RIPs make it affordable for printers to enter the short-run, full-color printing market.
BFL&S: How have chains like FedEx/Kinko’s affected the independent quick printing business?
Giles: Printers who rely on walk-in customer traffic have been hurt by the big box printers such as Kinko’s and Staples. Proactive printers haven’t been affected as much. Quick printers who have a strong outside sales program have been positively affected, since many of their low-margin customers have migrated to the big box stores.
BFL&S: Do you think there is still growth potential for independent quick printers?
Giles: The growth of the ’70s and ’80s may be gone, but a well-run quick printer who is getting in front of his [or her] customers can experience good growth by using and selling the new technology. Successful quick printers are moving away from commodity printing and going after marketing work that demands a higher [profit] margin.
BFL&S: In most aspects of commercial printing, adding services that fall outside of the scope of a traditional print shop (such as top-to-bottom direct mail services) has been an important issue. This means expanding the duties of staff and moving into new arenas to stay afloat. Have these same enterprising shifts altered the quick printing business?
Giles: Quick printers are adding new services that require a mind set different from the past. For instance, VDP requires knowledge of marketing and an understanding of the value of the printing. Successful quick printers have moved past the cost-plus-manufacturing model and are serving the market by providing greater value.
BFL&S: Do you see these shifts as beneficial to the quick printing industry?
Giles: The shifts seem to be a logical expansion of the communication services offered by printing. It is beneficial, since it can give quick printers products that have a higher [profit] margin. For instance, combining mailing services with an Internet-based PURL product makes the printed components of a marketing campaign even stronger. PURLs are marketed by direct mail. A customer visit to a PURL usually generates additional customer contacts that include more printing material and marketing collateral.
BFL&S: How can independent businesses retain their customers in such a competitive market?
Giles: Quick printers who target specific customers, make sales calls, ask for the order and [stay] in front of their top 25 customers tend to do well. The competition perception comes from printers who saw sales growth just by having their doors open in a good location. Because so many businesses added their own in-house copying capabilities, those types of retail printers saw a loss in business. They allowed themselves to become victims of changing technology. A good number of quick printers moved into more commercial types of accounts, and kept their short-run service attitudes and have remained viable businesses. They use equipment just as sophisticated as commercial printers to service business-to-business accounts. The quick printer tends to concentrate on faster turnaround and more personalized service.
BFL&S: How does the quick printing industry compare to commercial printing in general?
Giles: Quick printers are faring better than commercial printers since they [are already] comfortable with short-run work now required by many print buyers. Quick printers can adapt faster to changing market conditions because most are smaller (typically under $2 million in sales with the majority under $800,000). With the prices of technology falling, a quick printer can provide the same services offered by a printing company 10 times its size.
The quick printing industry is usually viewed as nipping at commercial print’s heels. But, quick printers are having to learn new technology and offer new services in the same top-to-bottom way as traditional printers. When it comes to new customers, no matter what the organizational structure, forging ahead with bursts of inspiration are necessary to beat the competition.
- People:
- John Giles