Plastic products redefine their role in the industry.
It has become so intertwined with our lives that we often overlook its significance. We find it in various formats necessary for the ease of monetary transactions, efficient luggage tracking, coast-to-coast calling and room privacy. All-purpose plastic has transformed itself into a plethora of products that make life a whole lot easier.
The plastic card has carved a clear and definite path for itself in the plastic products industry. "Plastic cards represent over 80 percent of our printed plastic division's annual revenue," said Dean Boustead, sales manager for Allegheny Printed Plastics, a plastic card manufacturer and printer based in Cranberry Township, Pa.
Steve Pruitt, national marketing manager for Teraco, Midland, Texas, said that several market surveys showed that "the plastic card industry is growing each year at a rate of 10 percent to 12 percent." However, Pruitt noted that traditional payment credit cards are not the largest share of printed plastic cards.
While plastic cards seem to be the leading product offering in the plastic products industry, there are, however, a wide variety of non-card items that hold their own. Pruitt noted that non-card printed plastic items represent about 15 to 20 percent of Teraco's overall sales. "Keytags, luggage tags and name badges are our best-selling promotional items. Our offering of these and other plastic items is part of the history of how Teraco grew to be a leading plastic manufacturer," he said.
Manufacturers say that while non-card plastic items tend to sell at a slower pace than their card counterparts, there are definite opportunities for non-card plastic items in the promotional products industry. "The market for non-card plastic items is in a slower growth mode than other plastic segments, but there remain ample opportunities for distributors to penetrate the promotional market with attractive printed plastic products," said Pruitt.
As far as innovative plastic products go, Teraco recently introduced GiftBucks—a pre-paid gift card that can be used as cash at retailers who accept ATM/debit payments on the Star and Pulse payment networks. The card can be imprinted with one of three stock logo designs, or it can be customized. "The idea of a widely accepted cash/spending card for promotional and premium incentive use has been well received. We see this product doing what pre-paid phone cards did several years ago," observed Pruitt.
Boustead said that Allegheny Printed Plastics is embarking on an expansion that will allow the company to offer medium-sized and large-volume plastic card runs. "The expansion will result in an annual increase in sales volume of between 15 and 20 percent," he explained.
Risky Business
The manufacturing and printing of plastic is not as simple as one may suppose. In fact, it is quite an extensive process that requires much attention to detail.
Boustead said that factors such as turnaround time, pricing and quality are important when it comes to manufacturing plastic products. "At Allegheny, we are time-, price- and quality-sensitive. We keep these factors foremost in mind in order to provide the best possible products for our customers," he said.
Pruitt noted that while the basic concepts of printing are universal, there are unique challenges inherent to printing on plastic. "Printing on plastic requires UV-cured inks to ensure the best registration and color management. Depending on the finish of the card, we have to allow for color shift during the heat-finishing process," he explained.
Pruitt also said that manufacturers and printers should work closely with resellers to assist them in helping customers understand that the end-to-end process is more complex and time-consuming than traditional paper printing. "Printing on plastic is a good mix of art and science," he said.
When it comes to selling plastic products, distributors ought to be aware of the intricacies involved. Boustead said that distributors should understand the make-up of the product and the industry in which it is being sold. "Distributors within the gift card market should understand the industry, the structural make-up of the gift card, point-of-sale activation and software ramifications," he explained.
On the other hand, Pruitt said that in order for distributors to successfully maintain and open new accounts, there needs to be more than a "vendor/customer relationship" with providers. "Distributors should develop a strategic partnership that will provide customers with personalized service and with suppliers who can quickly meet their needs," he said.
As for the future, the manufacturers agreed that printed plastic products are a worthwhile investment for distributors. "Printed plastic products present extremely profitable opportunities for distributors. Once an account is established, the residual and repeat orders are virtually endless," concluded Boustead.
By Cynthia T. Graham
- Companies:
- Allegheny Printed Plastics
- Teraco
- People:
- Dean Boustead
- Steve Pruitt