Distributors can still experience consistent sales with basic forms.
It was French author Alphonse Karr who once said, "The more things change, the more they are the same." Karr made the profound statement during the 1800s, yet it still rings true today. Even in the world of business forms, labels and systems, where e-commerce, on-demand printing and modern alternatives seem to be taking the industry by storm, one will still find a constant—a continued demand for some very basic traditional products.
Take, for instance, just how much traditional products account for overall sales at Web Graphics, Glens Falls, N.Y.—70 percent. And, at Highland Computer Forms (HCF), Hillsboro, Ohio, they account for 80 percent of sales. Interestingly, the numbers for some of those products at both companies are increasing. "Here at Web Graphics, we still have a constant demand for unit sets and checks. And, actually, the sales of these products have increased over the past two years," said Robert Mongin, regional sales manager. "I think the reason that these still-popular products continue to have a calling is because items such as unit sets fit a market that is geared toward the lower-volume end-user who just wants to keep it simple."
Rob Jones, plant manager at HCF, also reported an increase in demand for select traditional products. According to Jones, HCF's custom continuous single, continuous multiple-part forms and custom cut-sheet forms still fill a basic need in certain core markets, which distributors can easily tap into.
Other traditional products presently drawing in profits at Web Graphics include everything from unit sets and continuous forms to carrier-mounted envelopes, forms and checks. At HCF, choices run the gamut from stock tab continuous one-part forms and stock tab continuous multiple-part carbon interleaved to HCFA/CMS/UB92 stock health-care forms, unit sets, copy paper, continuous checks and custom cut-sheets.
Where's the Demand?
Who is still making use of traditional forms? According to Mongin, traditional products such as unit sets are being sold into the health-care, service, educational and repair markets. Check products, he said, fit into just about any industry imaginable.
The secret is to get into these markets, said Mongin, and find multiple, reliable contacts that distributors can follow up with on a regular basis. "Also, distributors should make themselves available whenever a buyer happens to call upon them. They should speak to everyone from the receptionist to the big decision makers," he said. "Anyone who might have a need—on a moment's notice or weeks in advance—is an important person to connect with."
Mongin also suggested working with end-users to develop forms that fit into their current work situation. "This helps to develop that all-important relationship or bond, while also helping to develop something to make end-users' jobs more efficient."
Jones said that HCF's custom continuous products and cut-sheet forms are primarily sold into the financial, retail, publishing, transportation and distribution markets. "Distributors can tap into these existing markets by dedicating themselves to making contacts outside of the current business they manage," he said. "For instance, they can contact a few local service bureaus and data centers that process for these vertical markets."
For distributors that are searching for an unusual product suggestion that might spark additional ideas, consider this example from Web Graphics: The manufacturer provides security products to the education market, particularly colleges and universities. "We do this mainly for transcript paper," Mongin explained, "to ensure that nothing can be counterfeited or changed."
Mongin added that the opportunity exists to create many different kinds of unusual products that are still considered traditional forms. It all comes down to discussing various solutions with various end-users. "It's also important to note that technology has not changed substantially for the production of traditional products," he said. "Additional security features, such as inks and papers, have become available to meet the demand created by increased fraud."
No Sale
While some old-fashioned forms have found a way to survive and thrive within the ever-changing world of business forms, it is no secret that others are evaporating at a quick pace. According to Jones, what is not selling at HCF in terms of traditional products are stock tab and multiple-part carbon interleaved forms. "These forms are very rare and tend to be found only in specific niche markets," he said. "They are cumbersome in nature, and the additional waste involved in handling these products has made them undesirable."
Mongin added that Web Graphics has seen a bit of a decrease in demand for continuous forms and carrier-mounted forms "because direct mail pieces offer an improved return rate from ink-jet or laser-printed pieces. In addition, checks have experienced a decline in usage over the past few years with the advent of the Internet," he said. "Customers are moving away from continuous checks to laser check products."
In the Cards
So, what is to become of traditional products? Will select forms continue to prosper in the industry, or will a vast majority of them be phased out by a continuing effort by businesses to go completely electronic?
Jones believes that the outlook for sales of these basic products in the near future is stable, "primarily due to consolidation within the manufacturing sector," he said. "In the longer term, the sale of traditional products will probably continue to decline as technology advances. In fact, it may be true that each of these products that we currently sell, including the popular ones, has the potential to experience a decline in sales based upon electronic alternatives."
Mongin agreed, stating that industry expectations are that there will be a continuing decline in the sales of traditional products by 5 percent to 10 percent per year. "It will take quite some time for 100 percent of all traditional products to fade away," he said. "Old habits die hard, and complete change usually takes place over a long period of time. The fact is that there are many, many end-users out there still requiring the same basic forms for certain jobs. In some cases, those forms still provide the simplest solutions."
By Sharon Cole
- Companies:
- Highland Computer Forms
- Web Graphics