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The Role of Promotion in Driving Digital Printing Sales

Posted Monday, October 15, 2018 by Ryan McAbee, Director, Production Workflow, Keypoint Intelligence.

Investing in digital printing devices doesn’t guarantee print demand. The key to building demand lies in promotion. Marketing communications, or promotion, is what propels the marketing and sales process for digital printing; it catapults demand.

Promoting digital printing is of prime importance because customers and prospects may not be aware of the benefits and value it can deliver. Promotion is a vital component of marketing digital printing as it can prove your ability to handle and produce digitally print jobs that yield results.

Attracting new digital printing customers or expanding share of business with current clients starts with creating awareness and educating customers on its benefits and your competency. Awareness of competency can lead to consideration as a potential supplier. If a print service provider is considered in more sales cycles, its hit rate (or close rate) for new business should increase.

Self-promotion campaigns, marketing materials, and educational efforts that demonstrate digital printing capabilities will open more doors for sales reps. These efforts also help shift the sales conversation away from a price-per-piece discussion by focusing on new opportunities and the value that digital printing can deliver.

Where Should You Start? Identify the Key Value Messages

  • Short-Run, Fast, Affordable Production. Digital printing accommodates demands for shorter runs and faster turnaround times at competitive prices. This isn’t a new value message, but it remains important. According to a recent Keypoint Intelligence – InfoTrends survey of enterprises with 500+ employees, the top criteria used to select a print provider included the ability to meet deadlines and competitive pricing—both of which are benefits of digital printing.
  • Digital Printing is More than Four-Color. Advancements in digital printing technology, substrate availability, and finishing capabilities bring great flexibility to end customers in terms of the jobs they can produce and the use of special effects. Unique imaging capabilities lift the status of printed materials from commodity, price-sensitive offerings to higher value products. InfoTrends believes that the market value for enhanced digital printing in the U.S. and Western Europe is about $917 million. This value is expected to experience a compound annual growth rate of 14%, reaching $1.3 billion by 2020.
  • Expanded Substrate Capabilities Extend Application Options. Digital print engines can support an increasing array of substrates, including heavier stocks and synthetic materials. They can also support high-value substrates like rugged synthetics; pressure-sensitive stocks; photo media; and pre-scored, ready-to-print dimensional stock. This brings great flexibility to print buyers in terms of the jobs they can produce. The right substrate can create the opportunity for higher value (margin) print in today’s market.
  • Personalizing One-to-One Communications. Personalization enables marketers to deliver the right content, to the right person, in the preferred channel, at the right time. According to InfoTrends’ survey of enterprise marketers, 41% of printed communications include some type of personalized information or images targeting the recipient. Personalization was primarily pursued to improve results—communications with personalization delivered a 38% higher response rate than communications that did not. Personalization is primed for mainstream use, and 55% of surveyed enterprises expect to increase their use of it over the next two years. Print providers can help drive the use of personalization by creating personalized promotions and measuring/sharing the results of those efforts.
  • Markets for Customized Print Products are Expanding. Digital printing’s ability to customize and affordably produce lower quantities on an ever-expanding range of substrates enables customers to create new products for specific audiences or individuals. One of the more significant trends that has emerged in recent years is the influence of technology on homemade manufacturing. The combination of the Internet with technological innovations that enable individuals to easily make and sell products has resulted in the rise of the “Maker Movement.” Makers are found in fields ranging from food to crafts to technology; they are a legion of entrepreneurs starting their own businesses to create and sell self-made products.

Now is the time for you to demonstrate the value that digital printing services can deliver to your customers. Promotional efforts build awareness, showcase value, and demonstrate your ability to deliver innovative digital printing applications. Print providers that use their digital printing capabilities to demonstrate the possibilities can build stronger customer bonds and position their organizations as trusted and valued partners.

Getting your message across requires involves continually showing customers what is possible while also positioning your organization as a provider of innovative applications. Now more than ever, customers are looking for a partner—not a manufacturer—that can help them accomplish their organizational goals. Demonstrating how digital printing can help your customers maximize their communication budget dollars is a strategy that can enable you to out-finesse the competition.

  • Sponsored by Canon Solutions America

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Premier Press Announces Acquisition of JTW

Posted Friday, October 12, 2018 by Chris Feryn.

Premier Press, a leading west coast creative production company, today announced the acquisition of JTW Partners, LLC (formerly Ivey Performance Marketing) in a deal that takes effect November 1, 2018. With more than four decades in business, both companies have a long history of providing design and creative production services for major retail brands like Nike, adidas and T-Mobile.

Premier President Chris Feryn describes the acquisition as an opportunity to provide clients of both companies with a broader range of services. “We’re taking advantage of the synergies between our two companies to expand our capacity and capabilities,” Feryn said. “For our clients, this means we will be able to produce more work, faster. And they will have access to more specialized services, all under one roof.”

JTW Partners’ employee talent and equipment brings new design and expanded production capabilities to Premier Press, including:

  • Photography studio with commercial photographers and stylists
  • Production artists with prototyping and post-production retouching expertise
  • Dye sublimation for premium fabric printing

Feryn says Premier will bring many of JTW’s employees on board, including client services representatives as well as designers and other key resources. “It’s just a really great fit. They’re coming to a good home, and we’re going to be able to grow from there,” Feryn said, adding that the transition is expected to be complete by the end of 2018. Previously, JTW Partners was known as Ivey Performance Marketing, a long-time Portland Portland retail marketing company , which became a subsidiary of Wright Business Graphics in September 2017.

About Premier Press Premier Press has been conquering chaos, executing ideas, and helping clients achieve greatness for more than 40 years. Our privately held company in Portland, Oregon, has led the way investing in our people, new technology, and the environment. We’re a carbon neutral company, 100 percent wind powered, and SGP certified. We’re passionate about quality, customer service, and taking your project to the next level. Learn more at

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Posted Wednesday, October 10, 2018 by Bob Lindgren, The Management Guys.

Article by PPI Trusted Partner

Achieving success as an outside sales rep requires an unusual ability to listen to customers, learn their needs but then accept “no” as the answer but keep on trying. It’s generally acknowledged that some form of commission on sales is the best way to incentive these folks to keep on trying. The simplest form of such an approach is a percentage of sales, usually around 8% or 9%.

Because printer’s estimating/pricing systems produce quotes that include not only the actual expenditures to produce the job (production wages, materials, outside services, etc.) but also allocations of all the overhead costs of the business (plant, machinery, front office, etc.) they usually identify amounts charged to the customer in excess of this as “margin” and think of it as “profit” in the same sense as profit for the business as a whole at the end of the month. Because of this, some firms have keyed commissions on margin (25% to 50% of the margin) or a sliding scale based on gross sales but varying it by margin (0% on negative margin, 5% on a 5% margin, 10% on a 10% margin, 15% on a 20% margin). The motivation for these approaches is the belief that “margin” equals “profit” for the business as a whole.

However, the reality is that profit for the business as a whole is reached when the “contribution” from the jobs produced for the month covers the overhead for the month. The typical job involves an actual expenditure (paper, outside services, factory wages) of about 60% of the invoice price and thus produces a 40% contribution to overhead. If a job is sold for $10,000 about $6,000 will be spent to produce it and $4,000 will be left to cover the overhead. If the overhead is $75,000 per month, the firm is now $4,000 closer to profit. A moment’s thought makes it clear that if the job had sold for $9,000, the firm would still be $3,000 closer to profit than if the order had been lost to a competitor. Similarly, if the job had been sold for $11,000, the firm would be $5,000 closer to profit. Simply put, any job that is sold to produce a positive contribution makes the firm better off. If the price is increased by $1 dollar the firm is $1 better off.

This reality demonstrates the problem with commission systems that are keyed on margin. They discourage the sales reps from selling jobs that would contribute contribution dollars while at the same time they give a disproportionate reward to jobs that contribute at a higher level as the contribution dollars are not more valuable as they get larger. Also, since really high contribution jobs are scarce, the sales reps focus on them may starve the firm for overall contribution dollars and make achieving profit at the end of the month more difficult.A far better approach would be to pay the sales reps a percentage of contribution. However, this would sensitize their compensation to variations in plant performance beyond their control. As a practical matter, a percentage of value added is preferable as it achieves the same result and is easier to understand. “Value added” is the difference between the invoice to the customer and the actual cost of paper and outside purchases.

If the firm has decided to make a change in its system, implementation must be carefully planned if disruption of the sales force is to be avoided. First, the rates used should not effect a global change in the rep’s compensation. If they continue to sell the same jobs for the same prices, their pay will not change. What the firm is trying to do is to get them to sell more jobs for as much as the customers will pay with the goal of fully utilizing plant capacity which will maximize the firm’s profits. For example, if the reps are now being paid 8% of gross, the value-added equivalent would probably be about 12%. This can and should be tested by looking back at a year’s sales data and identifying gross sales and value added. This is relatively easy as paper and outside services are usually identified.

Then the new system must be explained to the sales reps not as an attempt to cut their pay but to make both them and the firm better off by selling more work at the most that the customers will pay. It is also wise to implement the change with a transition period of at least six months where the commissions will be computed under both the old and new systems and the rep will receive the higher of the two. Reps who grasp the opportunity, will sell more jobs and make more money. Those who can’t will eventually leave.

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Better Workflows for Smaller Shops

Posted Tuesday, October 2, 2018 by Ryan McAbee, Director, Production Workflow, Keypoint Intelligence.

Managing a print shop is complicated. There are many moving parts and interdependencies, along multiple streams of inputs and outputs, that must be executed with timeliness and precision. A print management information system (MIS) has been the default tool for shops to control the chaos. As you know, the challenge, at least for small-to-midsized shops, is that many solutions on the market have been financially out of reach and the ones within reach are often not as sophisticated or encompassing. According to a Keypoint Intelligence/InfoTrends study, money and time were two of the top three reasons smaller shops (up to 19 employees) did not upgrade to a more robust print MIS.

better workflow

Smaller but Similar Challenges

Smaller print shops have similar business and operational challenges as larger shops, and the need for a single system of record to manage the business is just as critical. With fewer employees, smaller print shops are even more challenged to meet production demands. Having an easy-to-implement and use print MIS is important for smaller shops to:

  • Have a central place to update and track customer information
  • Communicate with customers and suppliers
  • Quickly create consistent pricing regardless of who is estimating the job
  • Create accurate and up-to-date production job tickets
  • Track inventory and waste
  • View production capacity and schedule jobs based on key criteria (e.g., due dates and service level agreements)
  • Track production costs
  • Interface with accounting (general ledger, accounts receivable/payable)
  • Generate reports to ensure business goals are met or exceeded

Beyond these tasks, you also need to on-board your customer’s jobs (ideally through a web storefront) and the jobs into a workflow before each can be printed, finished, and delivered. These connections that point upstream to a web-to-print solution and downstream to the workflow are needed to automate your processes. Until recently, print shops had to purchase a more expensive print MIS with integration capabilities and pay for professional services to setup the connectivity to the other software solutions. That’s changing.

Enter Skinny Print MIS and Web-to-Workflow Solutions

Smaller print shops are an attractive market for software solutions providers. While they do tend to spend less annually on software, smaller shops vastly outnumber large ones. Based on the latest US government data (NAICS), there were slightly less than 70,000 print shops with less than 9 employees while there were roughly 3,000 shops with more than 50 employees.

Software vendors realize they need a different approach to reach smaller shops, from how print MIS solutions have traditionally been sold and installed. To keep the costs down, vendors are creating lightweight solutions that can be quickly implemented (weeks instead of months) and delivered over the cloud via subscription. These skinny print MIS and web-to-workflow solutions are operated within a web browser, the user interfaces skew modern and simplistic, often centered around a customizable dashboard for each user. You can also receive orders over the Web and automatically route them to your workflows since most of these solutions include or have pre-built integrations for web-to-print and workflow automation. Several solutions use the costing capabilities of the MIS component to dynamically generate pricing for storefront products which eliminates the administrative task of maintaining static price lists and reduces the risk of providing an inaccurate price. Canon’s PRISMAdirect is an example of a web-to-workflow solutions with many of these capabilities that can take in orders from various entry points and push them downstream for more workflow automation.

Big Benefits for Small Print Shops

The increased vendor focus is a win for smaller print shops. The solutions are providing more MIS sophistication and integration capabilities (web-to-print and workflow) at price points that are better aligned with the average software spend of smaller shops. Since these solutions are cloud-based, you can redistribute time previously spent on securing and maintaining the computing infrastructure.

Odds are high that your MIS solution has been in place for many years (research suggests the average life is around 7 years). The long lifespan of a print MIS provides many opportunities to not install current versions, avoid database and cost maintenance, and find creative workarounds for any functional shortfalls of the solution. If this sounds familiar, it is time to re-evaluate your business needs and ensure your print MIS solution is up to the task of today and the next 7 years.

Sponsored by Canon Solutions America

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How to Get Students Interested in Print

Posted Monday, October 1, 2018 by John Berthelsen, VP-Development, Print & Graphic Scholarship Foundation.

PGSF logo

Companies throughout the industry (and this includes suppliers) are facing a common problem. They have an increasing number of employees who are reaching retirement age and are wondering where they are going to find replacements for these skilled workers. While this has always been somewhat of an issue for our industry, today it is becoming mission critical. A 2018 industry survey listed the top three business challenges as 1) Finding skilled sales personnel (65%), 2) Finding skilled production employees (42%), and 3) Recruiting and retaining employees (38%). How we address this going forward is of vital importance to the future survival of the graphic arts community. This article will not address the need to fill an opening that you have to solve in the next month but intends to look at the macro view of how you can address this issue long term and more globally.

Traditionally the graphic communications industry has done a poor job of promoting itself. In the eyes of most high school guidance counselors, and the typical parent, “printing” is thought of as a dirty non-essential and old-school industry. All over the country at both the high school and post-secondary level graphics programs are being dropped by school administrators. As a statement, very few graphics companies make an effort to support their local or regional educational programs, or to do any industry promotion.

The main focus of the Print and Graphics Scholarship Foundation is to award funds to students who are enrolled in a vocational school or college program. But an equally important mission is to actively encourage young people to consider the graphic communications as a viable career path. It has several tools and aids available to enable recruitment of young people into the industry and to support efforts of companies on a local basis.

Get Involved on a Local Level

So, what can a company do in its own area to improve recruitment and encourage young people to consider the graphic arts as a career choice? Here are a few ideas…

  • Hold tours at your company. Let the local middle and senior high know that you are available for class tours to show how the company operates and what you produce. Place an emphasis on digital, wide format, creative and other new technologies that showcase the modern aspects of the industry.
  • When offering tours, don’t forget about Boy Scouts, Girl Scouts, Yearbook staff, Design club, Journalism class or any other related group that may have an interest in touring or learning about your company or manufacturing process. You never know where you might strike an interest.
  • PGSF has a Career Guide flyer available that you can give to visitors that describes the industry and lists several potential positions available in a typical company. Downloadable files are available so that you can add your own logo and information on the back cover to produce your own localized version.
  • Send speakers to local high school career days whenever the opportunity exists. Hand out literature (see previous note) and use interesting graphics or display materials if your company produces them. One company I know of produced a life size cutout of Justin Bieber and every kid in the room wanted to take a selfie with it. Do one of your local sports team mascot. Send one the youngest and best talkers you have - who will relate to the kids – not just any senior VP or manager.
  • Do whatever you can to promote the industry in whatever venue you can. PGSF has updated our Career Poster that is available to anyone requesting it. It can be posted in schools or anywhere kids will see it. It is intended to pique their interest and encourage them to consider a career in the graphic arts. Several companies have made large banner size copies for posting at strategic locations in their facility.

PGSF poster

  • If you know of a student who is planning on going to school to get a one, two or four-year degree in a graphics related program, encourage them to apply for a scholarship with PGSF. This year we will give out 217 scholarships totaling over $500,000.

Take Action!

If enough companies start taking action, we will certainly be able to move the dial, and be able to ensure that we have enough young people entering the workforce to replace those that are leaving. Support a local or national scholarship program to perpetuate the workforce of the future. Let’s get started!

For more information on PGSF, to download files, or how you can support its programs, go to

John BerthelsenJohn Berthelsen retired from his position as CEO of Suttle-Straus in Waunakee, Wisconsin after leading the company for over 35 years. He is now working with individuals and companies to create the future employment workforce, support education and increase funding for the Foundation.

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