Stir Up New Blends of Integrated Products
Creative thinking and new backings allow for more varied applications.
They're thin, they solve a lot of problems and they keep clients out of jams. They are integrated products, and they can be used for a growing number of applications within a growing number of markets.
From chain-of-custody forms, direct mail packages and Rolodex cards to visitor passes and membership and ID cards, integrated products have found a niche within venues such as health-care, banking, vacation/resort, nonprofit, education and crime prevention.
This kind of adaptability is attractive to customers wanting to take full advantage of integrated products' benefits, such as streamlined processing, greater handling efficiencies and long-term cost savings to their clients. This is why Jeff Russell, president of Major Business Systems, Hillsborough, N.C., suggested that distributors take time to thoroughly research customers' business practices and apply some creative thinking. By doing so, he said, they would be able to move beyond common integrated product usage—distribution and shipping invoices—toward innovative applications, including resort permits and chain-of-custody and admissions forms.
"For instance, a hot item right now is an integrated hotel check-in folio for gated, high-end resorts," said Russell. "By uncovering the varied needs of such a buyer, we were able to combine vehicle permits and laminated, waterproof identification cards into one piece."
Having recently manufactured approximately 50,000 integrated forms for a Florida account, Russell emphasized the need for such a product and the potential profits distributors can reap by offering them to customers.
"Distributors can enhance their traditional margin expectations by double-digit percentage points," he explained.
A not-so-new application that Russell reported is growing in popularity by leaps and bounds is the use of integrated labels on chain-of-custody forms—forms that are typically used for drug-testing programs in which a specimen is taken and a label is applied to the vial simultaneously. "This ensures that the specimen and the information of the person providing it are kept together at all times," said Russell. "We are producing a lot more of this type of product than we have in the past."
New Biz in the Backings
Russell added that this popularity may be attributed to the industry's new-found flexibility regarding sticky backings. "More adhesive choices are available today, which allows us to adjust to whatever the need may be," he said. "For instance, in health-care, variables that determine adhesive strength may be whether or not a handler is using latex gloves, or if a label is going to be applied to a vial."
According to Dennis Albert, president and CEO of Glue-Fold, Livermore, Calif., new suppliers are the reason for different adhesive solutions. "For a long time, adhesives were produced by the same suppliers, but the market for backers has opened up to new players, making it very competitive," he said.
For instance, Albert explained that improved, less aggressive adhesives that release better are replacing older integrated product adhesives that made cards and labels difficult to remove. They can also replace products utilizing the dry-lift method. "When an integrated product is just die-cut, it can be difficult to peel up. In fact, some have an arrow indicating where one should start."
Albert added that the more modern adhesives are still strong enough to keep cards and labels in place without causing jams when the documents they are attached to are run through laser printers—a feature for which integrated products are best known.
Mail, Magnets, Promos
Where else can distributors drum up new business for integrated products? Universities and associations are ideal places to start. John Osborne, CEO of Wichita, Kansas-based Midwest Single Source, revealed that both markets are big users of integrated cards. While it may be profitable to sell to larger associations equipped with headquarters, almost all universities provide enough volume to make the sale cost-efficient.
"Universities almost always want to use specialized cards in their mailings to prospective students, or even to dues-paying alumni," said Osborne. "And, one of the greatest marketing benefits is that integrated products tend to make a package more attractive to the recipient." He added that larger associations usually like to mail integrated donor cards.
Another attractive solution that seems to be on the rise comes in the form of a magnet. According to Albert, magnets built into a document offer a high perceived value that many customers are seeking. "We produced a direct mail, high-gloss brochure for a poison control center that incorporated a magnet bearing the center's 800 number," he said. Albert mentioned financial institutions advertising home equity loans as yet another idea.
Dave Wandling, vice president of marketing for The Flesh Company, Parsons, Kan., has also experienced an increased demand for integrated form/magnet products, including sales to a benefits organization that wanted its VIP phone numbers to wind up on recipients' refrigerators.
But, distributors should not limit themselves to only the forms side of the business. Paul Curry, president of Printgraphics, Vandalia, Ohio, suggested that they also focus on the promotional side. Integrated products found in this category include dual, laminated cards, freezer-grade labels, scratch-off patches, clean liners for cards and labels, specially shaped die-cut cards and labels and peel-out cards revealing a scent.
Integrated Advice
Now that distributors are armed with ideas on what types of integrated products to sell and to whom, the question of how to go about selling them needs to be answered. Albert, who has been offering integrated cards and labels since 1988, said that pitching faster turnaround times, less spoilage, and long-run cost savings should convince buyers to reach into their pockets. "Sometimes, a client will look at the package deal and, especially with shorter runs, think that integrated solutions are too expensive," said Albert. "But, when one takes into consideration all of the benefits, these solutions are far less expensive than other options."
Curry suggested that distributors take a tour through the customers' facilities and look for messy work stations. The distributors should then ask if they are experiencing any workflow problems or organizational changes, find out if new product lines are being introduced and if marketing and support pieces are needed.
"We really encourage distributors to talk to an organization's marketing people," said Curry. "They should also call on sales management, but not purchasing and data processing staff," he added.
As far as additional markets that distributors should think about targeting, Curry recommended beginning with existing customers, while also investigating third-party administration groups, ambulance services, technical schools and community colleges. "Asking the Fed Ex driver where he does a lot of pick-ups is also a good idea," he concluded.
By Sharon R. Cole