What Do Print Buyers Really Want

8/9/2019 What Do Print Buyers Really Want

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2 2012 PressReady Marketing | www.PressReadyMarketing.com | 8888967216

: What Do Print Buyers Really Want?

What Do Print Buyers Really Want?and how can you charge a premium for

providing it to them?

Contents

Challenges facing small, independent printing businesses

Marketing as the engine of the small printing business

Laying a foundation for effective print marketing

Finding your ideal customers

Identifying what print buyers want and need with the

Print Buyer Priority Matrix

Priority: Low cost High performance

Specification: Simple format Complex specifications

Guidance: Minimal assistance High demand for guidance

Summary of print buyer priorities

Strategies for successful print marketing: Next actions

Make a marketing plan

Position your business, state your value

This report aims

to give the owner/

manager of a small

printing business

a framework to

develop marketing

strategies which will

drive the success of

the business.


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Challenges facing small, independent printing businessesThis report is written with the owners and managers of small printing busi-

nesses in mind. These businesses include those with less than about $1 to

$1.5 million in revenue, and fewer than about 25 employees. Shops on the

smaller end of this scale are widely thought to be on the edge in the cur-

rent industry climate, or at least closer to it. They have fewer resources to

compete with, are more vulnerable to business swings or events, and more

vulnerable to competition from larger, more technologically capable firms.

I speak regularly with print owners in different parts of the

world, and find several major concerns repeated again and again.

Many feel threatened by trends in the printing industry such as consolida-

tion, the trend toward larger players in a mature industry, and growing

offshore sourcing both by large competitors and by print buyers.

They worry about the growth of the internet as a sales channel, along with

large office chains getting further into the printing business. They are con-

cerned that print is increasingly thought of as a commodity by print buy-

ers who see no substantial difference among print providers, and who buyprinting by price alone.

In some cases small printers are unable to compete on price, and in others

they find that buyers mistakenly believe the large chain store suppliers offer

the lowest prices and look no further.

Many sense that future success depends on embracing new technology, but

that the costs involved, the difficulty of evaluating choices and steep learn-

ing curves are significant barriers.

While all of these challenges have profound implications for the opera-

tional side of printing businesses, they can all be approached as mar-

keting problems.

Of course, marketing cannot compensate for poor performance, or allow

you to continue obsolete practices. But the process of figuring out what

print buyers find valuable, and how you can do business with those who

value what you can offer, is the beginning of creating a business that does

Almost any

business

challenge can be

overcome with

better marketing.


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not need to compete on price, and has the resources to adapt its capabilitiesto meet the evolving needs of the print marketplace.

This report aims to give the owner/manager of a small printing business a

framework to develop marketing strategies which will drive the success of

the business, no matter how small the starting point.

I hope you will find specific actionable items in this report, and that it will

spur new thinking about the role of marketing in helping you achieve great-

er profitability and more enjoyment in owning and running your business.

Marketing as the engine of the small printing business

In addition to having common concerns, many owners also approach their

businesses in similar ways. The most important example, as it relates to the

topic of building a profitable printing business, is that print owners generally

think that the primary activity of their business is to put ink or toner on pa-

per. I believe this is a fundamental problem, because it places a choke hold

on the potential for growth and success. I believe this commonly held idea

is the single most significant difference between smaller printing businesses

that struggle to succeed, and those that achieve growth and profitability in

any business environment.

If you take nothing else away from this report I urge you to consider

this: the primary activity of your printing business is marketing. This is

so important that I will repeat it in other words and come back to it.

Nothing that the owner or managers of a printing business can

do has more impact on revenue than marketing.

This doesnt mean that operational excellence is unimportant. Rather it

means that by focusing on finding and keeping customers as the primary

activity of the business, the owner can generate a stream of business which

supports investment in operational optimization, and is able to hire staff to

handle operational activities.

The reverse case is the harried owner who is constantly racing to stay on

top of operational activities (working in the business, rather than on it),

never quite manages to get to marketing projects, and is constantly frus-

trated by the obstacles to growth and profitability. This owner is also likely

Consider this:

the primary

activity of your

printing business is

marketing.


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to think of marketing as among the first expenses to trim when businessslows down.

Thinking of marketing as an additional, desirable but non-essential activity is

to give up control of your businesss destiny.

The most successful entrepreneurs, CEOs and managers recognize that suc-

cessful marketing drives growth, while successful operations give a com-

pany something to market. They also know that marketing done well is an

investment which produces a profitable return.

This is a good place to consider what marketing is and what itcan achieve.

I see marketing and sales as two ends of a continuum rather than complete-

ly distinct activities. The whole process encompasses identifying, qualifying,

and engaging prospective customers, then converting them into buyers.

Marketing activity is everything you do to speak to many prospects at

once; sales is everything you do one to one.

Well planned and executed marketing activity makes the sales forces job

easier and more efficient, as it will already have established the value anduniqueness of your services.

Sales becomes a process of clarifying value, eliminating doubt, establishing

credibility for individuals who require it, and facilitating transactions.

Laying a foundation for effective print marketing

The fundamental issues involved in running a successful printing busi-

ness are actually identical to those of any other business. It doesnt matter

whether you are selling printing, food, insurance or bicycles, a business is

built on three essential steps:

1 acquiring customers

2 providing something they value, and

3 collecting a profit for doing so.

It is significant that acquiring customers, or marketing, comes first in this

sequence, but the steps are interdependent. Being able to offer the highest

Marketing activity

is everything you

do to speak to many

prospects at once;

sales is everything

you do one to one.


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precision imaging, with absolute color fidelity and the shortest turnaround,would be of no use without a steady stream of customers to support the

capital outlay necessary to provide the service.

At the same time, without the ability to produce value there would be no

basis to acquire customers, and without a return of profit there would be no

basis for the other steps. However, beginning with the needs and wants of

customers makes the whole process more efficient and effective.

By identifying what customers find most valuable which is also in lim-

ited supply, you can adapt what you sell to cater to the most profitable

needs.

You can then define your target audience very precisely, which allows you

to do two things: you can create tightly focused messages that address their

concerns directly, and you can get those messages in front of them cost ef-

fectively.

The marketing process itself begins with knowing who your potential cus-

tomers are.

Finding your ideal customers

If we think of print buyers as anyone who purchases enough print services

to have some value as a customer, we have a large and diverse group to

consider.

This group would not include consumers, unless we specialized in wedding

invitations, for example. It would be made up of businesses, and the people

who own, manage, and perform purchasing for them, whether they are

enormous conglomerates or home-based sole proprietorships. The array of

concerns and priorities this group encompasses makes efficient targeting

impossible, and identifying profitable needs hopeless.

We must break the universe of print buyers down into subsets and eliminate

those whose needs do not match our capabilities, or to whom we cannot

provide services profitably. In preparing for direct marketing campaigns this

is often done with filtering strategies.

First, you can limit targets to a convenient geographical area. Informal

polling (1) reveals that among subscribers to a web-based service for print

By identifying what

customers find most

valuable which is

also in limited sup-

ply, you can adapt

what you sell to

cater to the most

profitable needs.


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buyers, 40 miles is about the farthest the majority will travel to a printer.This is based on two factors: shipping costs and the convenience of visiting

for press checks and so on.

The area you target will depend on the region you are in. For example, in

a densely populated city you may find all the prospects you can afford to

contact within a radius of only a mile or two.

Next, you can select by industry category. It is routine to filter mailing lists

by SIC or NAICS code, and this will allow you to eliminate industrial sec-

tors which do not use much printed literature, but which would be numer-

ous enough to waste a significant amount of your mailing budget, such

as restaurants. You could also concentrate on categories that you know to

purchase a lot of printing, such as financial and professional services.

Other ways of refining your pool of targets might include filtering by the

number of employees or revenue, or concentrating on members of particu-

lar trade associations.

Applying all these limiting factors will create a much smaller list, but there

are still problems with qualification as buyers. Even within narrowly defined

groups of businesses there is room for a wide array of priorities, which couldmean that companies who purchase products that you can produce still

might not be a profitable match.

A more reliable way to identify good prospects is to use information about

their purchasing priorities and behavior. For a small printing business, this

kind of data can be prohibitively expensive, if it is even available. A practical

alternative is to work in reverse, by defining the behaviors and priorities

that match up with the capabilities you can offer, then using your marketing

messages to make prospects self-identify with those priorities.

Essential to this process is a way of categorizing and quantifying print buy-

ing priorities.

Define behaviors

and priorities that

match up with your

capabilities, then

use your marketing

messages to make

prospects self-

identify with those

priorities.


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Identifying what print buyers want and needwith the Print Buyer Priority Matrix

In developing marketing resources for printers it is my aim to understand

the motivations and fears of print buyers, so that the materials I produce for

clients are as effective as possible. From my research I have formulated a

core set of purchasing dynamics that can be plotted in a three dimensional

matrix.

The result is a visual tool that allows printers to easily identify profitable

customers according to key characteristics of the jobs they order and their

priorities for choosing a printer.

LOWCOST

HIGHPERFORMANCEPR

IORITIES

COMP

LEX

SPEC

IFICATIO

NS

SPEC

IFICATIO

NS

SIMPLE

FORM

AT

EXTENSIVE

GUIDANCE

GUIDANCE

MINIMAL

ASSISTANCE

You can use this matrix to compare your past and present customers, and to

think about the profile of your ideal customers those in the sweet spot

where you can offer excellent performance and return a good profit.

Introducing

the Print Buyer

Priority Matrix, a

tool to help printers

evaluate their

marketing options


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The critical purchasing dynamics I identified are described by three contin-uums, or sets of opposing attributes. These are:



Guidance: Minimal assistance High demand for guidance

Each of these continuums can be used to pinpoint a customer, prospect or

job. Each has implications for profitability that will depend on your opera-

tional capabilities, so you can also use the matrix to think about how youcan differentiate your business from competitors and how you can position

your services.


Of all print buyer priorities, the demand for low cost causes the most

trouble for small printing businesses.

The ability to deliver lowest prices and thrive depends on eliminating human

effort from the workflow with automated systems at every possible stage,and to maintain a high volume of orders. The internet has made this possi-

ble for a number of very large printing businesses, and to some extent print

buyers have become conditioned to expect low prices and fast turns.

Few small printers can compete effectively head on. However, there are

answers to the problem, and opportunities for small providers to carve out a

lucrative niche.

Very low prices are only possible when the job fits a predetermined format

and the customer requires no guidance. When cost is the driving consider-

ation, a buyer is likely to compare vendors extensively, will take risks regard-

ing an unknown performance record, will accept lower standards of quality

and service, and will be prepared to switch vendors for even a small reduc-

tion in price.

This does not make a price motivated buyer an attractive prospect, but

there are opportunities here, including educating inexperienced print buy-

ers about the pitfalls of apparently cheap printing options. For example,

Customers are more

likely to value your

suggestions for

improvement to

the quality of the

end product or the

efficiency of the

work process, and

for ideas to produce

a better return oninvestment.


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although the ordering process is extremely fast for online printers, turn-arounds are rarely particularly speedy, and when shipping is factored in can

be fairly slow. Shipping costs can also erode the low cost advantage. Creat-

ing awareness of the risks associated with unknown vendors can also help

keep print jobs local.

When confidence in the outcome is the priority, a buyer will select a printer

who offers a high assurance of performance, and will be resistant to change

as long as performance is good.

High performance can encompass rapid turns, high precision imaging, or

unusual capabilities. Print buyers who value high performance will judge

printing in terms of the results it returns to them. They may see superior

print quality as reflective of the quality of their own services, or as more

likely to create the marketing results they desire.

Because of this focus, such customers are more likely to value your sugges-

tions for improvement to the quality of the end product or the efficiency

of the work process, and for alternate ideas to produce a better return on

investment.


Just about all low cost internet and mail order printers offer an array of

standard formats at standard prices, often with a premium for faster deliv-

ery. Any deviation from the standard specifications is expensive and incon-

venient.

An obvious competitive advantage is to be able to produce complex custom

orders efficiently. From a marketing point of view it makes sense to demon-

strate your unique capabilities, and show print buyers how they can achieve

their communication goals more effectively with custom work.

This idea extends to technological capabilities, such as multi-channel mar-

keting resources and variable data printing. The harder it is to compare an

estimate for such work to other vendors, the greater the premium you can

charge.

On the other hand, work that fits standard formats optimized for your

equipment and workflow can be very profitable, and may be worth market-

The harder it is

to compare an

estimate for such

work to other

vendors, the greater

the premium you

can charge.


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ing aggressively if you can find the volume to make it worthwhile.

Guidance: Minimal assistance High demand for

guidance

In some cases print buyers will accept a low level of assistance simply be-

cause they lack experience and are unaware of potential difficulties they

dont yet know enough to ask for help.

On the other hand, experienced print buyers may be knowledgeable

enough not to need much help. However, the ability to offer guidance to

customers can be one of the strongest points of differentiation a printer can

use.

Most people have a certain amount of fear based resistance to any pur-

chase, whether it is fear of making an expensive mistake or fear that prob-

lems will cause missed deadlines. A proactive campaign based on providing

guidance to print buyers can be especially effective in removing doubt and

establishing trust.

People also value information that helps them do their jobs better or oth-

erwise meets their needs. By positioning your company as a source of suchinformation, you can establish relationships that translate into premium

priced services and long term loyalty.

Summary of print buyer priorities

To summarize, the most profitable print buyers are those who:

want it fast

want it to look absolutely perfect

want it to perform better

want to do something unusual

want guidance to get better results

By positioning

your company as a

source of such infor-

mation, you can

establish relation-

ships that translate

into premium priced

services and long

term loyalty.


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In all these cases, your services can command a premium price, especiallyif you can make it easy and enjoyable for the buyer to do business with you.

The strongest relationships come from customers who see your contribution

as part of their success.

Loyalty can also come from inertia when assets are placed under your

control, such as data, or materials for frequently updated or distributed jobs,

there is greater resistance to changing vendors.

Part of the value you offer in these cases is a smooth and easy workflow.

Whenever you are able to make your customers lives easier you have po-tential to charge a premium for it.

Strategies for successful print marketing:Next actions

Make a marketing plan

If you havent already prepared a written marketing plan, make it a priority

to sketch one out. Keep it rough in outline at first and refine it as you go.

The important thing is to create an awareness of your current situation and

to detail action steps you can take to move toward specific goals.

Your marketing plan is a living document. You will adjust it in response to

the results form marketing activities, and to the changing competitive land-

scape of your business.

Start by mapping out the kinds of customers you have now, and the kinds

of jobs you do for them. Group them according to two dynamics: the profit-ability of the work, and the smoothness of the workflow. Are these related?

Look for patterns that show where your energy is wasted, and where your

profits lie. From this will emerge a picture of your sweet spots the catego-

ries of customers and jobs where you can achieve profitable work efficiently

and profitably.

Now start brainstorming ideas for how to identify, reach, talk to and convert

The strongest

relationships come

from customers

who see your

contribution as part

of their success.


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The emphasis of

intelligent direct

marketing is on

building your herd

those who have

responded to the

value you offer,

and with whom

you can develop a

relationship.

more of the customers in your sweet spot. Where can you find them? Whatare their most difficult problems? What messages would they respond to?

How can you engage their interest?

From these ideas you can start to create plans, which are distinct projects

with defined steps to move toward clearly defined goals.

Include the steps you will take to measure results, evaluate both perfor-

mance and goals, and test your strategies.

Position your business, state your value

Use the resources in this report to begin shaping your competitive position,

and your unique value proposition.

It is good practice to generate a variety of messages stating the distinct

value you offer to customers, and the ways you are different from all the

other options available.

Remember to focus strictly on the benefits you offer, phrased from your

customers point of view. Prepare messages from a dozen or so words to a

couple of paragraphs, and keep them on hand for use in all your marketing

communications.

The Print Buyer Priority Matrix is a useful tool for pinning down the specific

points of differentiation that you can use to develop your positioning state-

ments.

As a final recommendation, let me suggest that you do not wait for

things to fall into place before you make marketing the main priority of

your printing business.

Begin marketing with the capabilities you have now. The emphasis of intelli-

gent direct marketing is on building your herd those who have responded

to the value you offer, and with whom you can develop a relationship.

Once you have a receptive audience, you can maintain the relationship

relatively cheaply with a steady flow of valuable information and assistance,

and sell new services as they come online.

Apply the same marketing principles to promote your new capabilities as

you did to win leads originally: use relatively inexpensive communications


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Call to set up your

30 minute Printing

Business Marketing

Review

8888967216

to qualify interest, following up with more involved communication to bringrespondents along to the purchase stage.

Marketing activity brings your prospects along the pipeline until they signal

readiness to purchase, and then person to person sales activity takes over.

What to do nextPressReady Marketing has developed a 30 Minute Printing Business Mar-

keting Review which we conduct over the telephone with you. Here is

what we accomplish together in this fast-paced, zero-nonsense session:

Competitive positioning: Identify oppportunities to establish your value

proposition and differentiate your offering from competitors.

Goal setting: review key marketing metrics, establish goals for your mar-

keting program, outline potential return on marketing investments.

Marketing opportunities: Outline marketing initiatives that t your re-

sources and will help meet your goals.

The 30 Minute Printing Business Marketing review is conducted by the prin-

cipal of our company, Colin Dodgson.

Please be assured that this consultation will not be a thinly disguised sales

presentation; it will consist of the best intelligence Mr. Dodgson can supply

in a thirty minute time span. There is no charge for this call, but please be

advised that the call must be strictly limited to 30 minutes.

This consult will typically take place within 1-2 weeks of your call.

To secure a time for this consultation, please call Colin Dodgson at

(888) 896-7216 or email [email protected].

You will also be asked to complete a pre-consultation questionnaire.

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What Do Print Buyers Really Want