There are a lot of printers going out of business or about to go out of business because they can’t change their business model. Customers no longer walk in and ask for something to be duplicated. The day of commodity printing is over. People no longer need forms to collect information. It is now done on a computer. What print customers now need is help in finding the best way to communicate their message with their customer. The answer isn’t always ink on paper.A recent report by John Stewart for the National Association of Quick Printers found that the average age of a print shop owner was in the mid-50s. They opened their businesses when making a copy required expensive equipment. Today, everyone has a copier attached to their home and business computer. The print services people are buying have changed. Those services aren’t best served by having a walk-in location in a high traffic area.

Printers need to add new services that take advantage of the Internet. One area would be content development for electronic media. Adobe and Quark have released new software will help printers and designers turn their InDesign and Quark files into documents and apps that can be read on iPads, tablets, and smartphones. If the major page layout software developers are taking their businesses into a new electronic direction, printers might want to follow. Adobe has also introduced a line of apps to create content on tablets including a Photoshop type of app. If printers are going to survive and compete they must now learn how to create content that will work in environments other than on paper.

Website development, mobile marketing, QR codes, and other Internet related products can be integrated with print to make a message stronger. Printers will have to learn about and provide these services in some way if they expect to compete in the new electronic communications world.

Printers don’t have to go out of business. They need to evolve their business. That evolution needs to begin today.

Is the summer a bad time for printers? Over the years I have heard that July and December were down months. Printers could expect to see their sales plummet twice a year as print buyers took vacation or enjoyed the holidays.

That sounds logical, but the more printers I meet the more I begin to think this is just an urban myth. I am finding that printers have smoothed out the roller coaster sales ride by constantly working on increasing sales. They don’t stop their sales activities when they get busy with printing. They keep making sales calls. They use the same tools and technology they are selling to customers to improve their own sales.

The new products and services driving successful print companies relate to helping customers get more leads. QR codes, websites, variable data printing, mobile marketing, mailing, Personal URLs, e-broadcasts, and social media are tools that help send a targeted message meant to improve a brand and create interest in a company. The successful printers use these tools to get more of their own leads and to demonstrate how the tools can help their customers.

Buying doesn’t stop in the summer and neither should selling activities. Most printing customers don’t shut their businesses down in the summer. The reality is that it isn’t customers who stop buying in the summer—the printer stops selling. Vacations, longer days, and warm weather can change a company’s focus, and lazy summer days become lazy selling days.

Print companies must continue their selling activities every day. They need to be touching customers in some way constantly so they will be the first printer a customer thinks about when they want to order something.

For a print shop to be successful, it has to develop a sales funnel to keep touching the customers. With websites, e-newsletters, Facebook, LinkedIn, etc., printers can easily keep an ongoing dialog with their customers year round. They just have to do it. No printer should be slow in the summer. They should be busy touching customers, making sales calls and asking for the order.

As printers search for new revenue, selling and supporting websites is becoming an exciting new product to sell. Websites integrate easily with printing companies since many printers are already working closely with customers to manage their message.

But there are some printers who do not want to get into Web services. Printers do not have to sell Web services, but they must realize that it is important to understand the Web if they want to continue printing for a company. Printers will have to become “Web experts” because they need to help customers integrate their print collateral with the current website information, even if they don’t maintain the websites.

Combining the power of the Web with print is proving to be a powerful vehicle for getting out a message. Any response generated by the Web needs some sort of printed information. It might be in the form of brochures mailed to the customer. It could be leave-behinds from a personal sales call. Print is still an important part of the communication process.

Customers need help making sure the printed material matches the Web-based material. Is information available both in print and online? Do the logos and colors match, helping build the brand? Do the messages from both media match? In the rush of business, many customers haven’t really looked at how they have integrated their message, and they need help. Printers can help the customer be assured that the look and feel of the Web and printed material are the same and the customer’s brand is protected.

At the same time, printers can be looking at the Web to see what mobile marketing and QR code opportunities are available. Has the customer added QR codes to their printed material to drive customers to websites? Does the customer have online video that can use more clicks?

If print owners ignore the Web, they are just putting another nail in their coffins. Print and the Web play well together. Neither can be as powerful separately as they can be together. No sales call should be done without a review of the customer’s current website. Printers must understand how a customer is using their website and what they want to accomplish with it so they can provide the printing support that is needed.

Rising fuel costs are pushing prices up for everything we buy. Printers are seeing jumps in paper and every other thing they buy. The rising costs mean lower profit margins if a printer doesn’t react quickly, but we aren’t seeing a jump in print prices because customers tell the printer it isn’t happening.

Every day I talk to printers who are concerned about raising their prices. They tell me that they can’t raise prices because their customer told them they could get the job cheaper somewhere else. When we drill down in the conversation, I find that usually the printer doesn’t have any facts to what the prices really are. He is just going on what he was told by the customer.

Printers lose jobs every day because of price. A certain percentage of customers requesting a price will make their buying decision on price, but that doesn’t mean everyone buys on price. There is usually one other factor besides pricing that affects the decision.

I think a printer would be hard pressed to find a top 25 customer who buys from them based solely on price. Usually, top 25 customers have a history with the printer in which the printer has proven he can meet the customer’s needs with a fair price. The printer delivers the job on time. The printer assures the quality is high. The printer will work with the customer’s budget and his emergencies. There are a lot of intangibles that can’t be obtained from the low-priced printer.

Yet printers don’t listen to their top 25 customers when it comes to price. They listen to the person who walked in off the street and is buying his first printing order. He is shocked when the price is higher than he expected. The printer is listening to the person who just saw a price on the Internet that was low, but doesn’t realize the specifications for the low cost job are limiting. Does he really want the Internet printer’s name and Web address on the back of his business card?

Printing isn’t a charity. You can’t give people special prices because they can’t afford the printing. You are allowed to make a fair profit on your products and services. You need to make a fair profit so you can pay your employees and purchase the equipment that gives customers better and faster service.

And the average invoice for most quick printers is in the $300 to $500 range. If you added $25 to the $500 order, would you lose the customer? That is a five percent increase. Would a customer leave you because the bill last time was $300 and now it is $315 to cover your rising costs?

Next time you hear that walk-in customer or price shopper complain about your price, just think of your top 25 customers. Did they complain when you stayed late to meet their required delivery date and you charged them the normal price? Your top 25 customers buy from you and your staff because they like you and you give great service at a fair price. Know the facts before you start cutting your prices just because a customer couldn’t afford what you sell.

Industry consultant John Stewart recently released the 2011-2012 Quick Printing Industry Pricing Study. The document is packed with interesting pricing information, but to me one of the most striking observations was not in pricing, but in the Basic Company Data section. According to the report, the average age of the 350 printers participating in the report was 55 years old. The average age of the company was 28 years.

If this report is representative of the industry, then quick printing is going to go through some major changes in the next 10 years. The age factor raises more questions than answers.

Are younger people not coming into the industry? The baby boomers who started the quick printing industry are still here, but where are their replacements? Are their children going into other industries and forsaking the businesses their fathers and mothers built?

Why aren’t younger people attracted to owning a quick printing business? The industry has become more high tech over the past decade. Profitable shops are computer driven and integrated with the Internet. Don’t younger entrepreneurs see opportunity for their future in printing?

Has the core business changed and older owners just not recognized it? Much of the work that was once the bread and butter of print shops has disappeared. Today’s printing growth is in marketing related printing. This type of printing is integrated with Internet-based services such as social media. It includes variable data printing and database management. Are younger owners attracted to a new business model where printing is only a minor component in the array of services offered?

Are younger owners just not attracted to associations that do these types of studies? Do the younger owners not see themselves as businesses that put ink on paper, but as more of a communications partner to help customers sell their products and services? Association membership in the printing industry is dwindling. Is it because there are fewer print shops, or is it that there are fewer owners who see themselves as traditional printers?

Has the age of quick print owners hampered the advancements in the industry? Does the age of printers cause them to overlook the changes in the way people communicate? Have older owners been too slow to adapt to business and cultural changes to keep their businesses viable for the future?

And the biggest question of all: if young entrepreneurs aren’t coming into the quick printing industry, who will be buying these quick print shops from the soon-to-be retiring owners? Many of the 55 year old owners can probably make some money over the next few years, but can they sell their shop for enough to support their retirement? Have they modernized their businesses so they will sell? Do they have the trained people on staff? Are they selling the products and services that customers need and want?

There is always going to be printing, but how much printing will there be? I’m hoping the 55 year old owners are concentrating on making their businesses something they can sell in the next few years because it doesn’t look like there are going to be many buyers available.

A visit to the grocery store or gas pump lets us know how quickly prices can change. Prices are going up quickly and not just for consumers. Printing companies are seeing their costs rise. The question is whether or not printers will react and raise prices or eat the rising costs and suffer the consequences.

I’m continuing to get calls from printers who are complaining that their competitors are “giving work away.” They say they are forced into price wars because a few low-ball printers are messing up the market for everyone and making customers expect to get lower prices.

I can’t agree. Printers are notorious for being poor salespeople. Most just wait for customers to call and then react by giving a price. Since studies show that most customers don’t have more than three vendors for any product or service, it is hard to believe that customers are getting that much pricing information to put pressure on a specific market. I can’t believe that print prices are the topic of conversation between businesspeople over lunch or that some printer is actively calling on customers promising the lowest market price.

What I believe is happening is that all customers are looking for the best deal possible and are asking, “Is this your best price?” Price is only one of the considerations a customer has when selecting a printer, but printers think that since the customer asked the question, then price must be foremost in the decision.

There is always going to be a customer who only goes for the cheapest prices. There are always going to be printers who will do the job below costs just to have work for their employees. The best way to combat this is to get out of the shop, make sales calls, and build a customer base that will pay a fair price for your products and services.

Tom Crouser recently posted a video at his website at www.crouser.com that discusses how lowering your price doesn’t get you additional business or profits. The 18-minute video will help expose some of the myths about pricing and, perhaps, keep printers from cutting their price just to get the job.

Printers have to raise prices. The cost pressures are increasing, and to delay passing on price increases is unfair to printers and their employees. Printers are in business to make money. There is nothing wrong with asking customers to pay a fair price.

Are printers going to let someone else make money off a cool communication idea and just sit around waiting to compete for the printing? It seems so as we see new social media support companies popping up around the country to handle the social media mechanics for businesses. These companies are charging premium fees and handling the print buying for their clients because print is important to use when creating followers and fans.

Why can’t printers offer social media services too? They already work with customers in creating and distributing the customer’s message with print. They know how to manage a customer’s printed brand. Why not use those same skills to help customers with their social media?

The printing industry has let this happen before. Graphic designers and ad agencies sell the print buying customer the perceived value part of a project (idea, design, concept, etc.) and leave printers to compete on price and service for the printing portion. Printers can do just as good work, but customers don’t think about printers when getting graphic design.

The same thing happened with PURLs. PODi, the organization that helps set strategic direction in the digital print industry, reported that on many PURL (personal URL) projects, printing costs made up only 10% of the total selling price. The people selling the idea to the customer took the other 90%. Printing became the commodity product in the mix. Someone else sold the value of the project to the customer and left the printer to compete for what was left.

The same thing could happen with social media unless printers get in front of the curve. Printers need to learn and use social media to increase their own sales as well as learn the mechanics so they can do social media services for their customers. It isn’t hard. It doesn’t require a major equipment investment. It is an opportunity that the printing industry shouldn’t let slip through its fingers.

In a recent email, a printer was lamenting the fact that non-profit organizations were always beating on him to lower his prices. He was complaining that because they were “non-profit” he felt obligated to provide a lower price because they weren’t in the business to make money.

I have to disagree. Being a non-profit organization means that an organization does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. The organization is also exempt from paying some local, state, and federal taxes. It doesn’t mean the organization is poor or that its employees work for free.

In a new book entitled “Death to the BCS,” the author studied tax records of bowl organizations for college football’s end of the season wrap up and found that nearly two dozen bowl directors earned more that $300,000 a year. Most of these organizations are non-profit organizations. I wonder how many printers “donated” printing to their local bowl game?

Of course, there are some organizations that work with volunteers and need the community support from local businesses to do their good deeds, but too many printers believe that any organization that is non-profit has to get a special deal.

It is easy to find out if a non-profit organization really needs help. Most state governments keep records about non-profit groups that show how much money and services really make it to the cause in need. You can also check out legitimate organizations at www.guidestar.org. The Guidestar site gathers and publicizes information about nonprofit organizations. Visitors to the site can even access an organization’s IRS Form 990. This is an annual reporting return that certain federally tax-exempt organizations must file with the IRS. It provides information on the filing organization’s mission, programs, and finances. You can even find out how much the organization spent on printing for that tax year.

Discounting is just another way to avoid having to do the hard work of getting out and talking to customers and asking for the order. Discounting might be a selling strategy if the printer was making money and could afford it.

One of the main reasons that printers are going out of business is that they don’t charge enough. I see print owners working 60 to 70 hours a week and still not making any money. They use price as their selling tool and figure the only way to get new business is to be the cheapest vendor.

Non-profit organizations can be top customers for printers. If you are going to discount to a non-profit organization, make sure you still make a profit. A non-profit organization can provide enough printing on a regular basis that a printer could adjust prices because of the large volume of steady work.

If you are going to give a discount to a non-profit organization, make sure there is something in it for you. You can offer a lower price if the non-profit organization will guarantee a certain sales volume or a certain volume of work. Don’t lower your price unless the customer is going to give you something in return.

I recommend that every printer be a good neighbor and help charitable organizations when they can. But remember, charity begins at home and we can’t help our neighbors if our house isn’t in order.

It is amazing the pricing strategies that some printing companies use to gain new business. One strategy that has been around for ages is to offer discounts for first time buyers to show prospects the quality and service they can receive if they were to become a regular customer. The discount might get the job the first time, but it doesn’t guarantee you will get the next job at the higher price. You just trained your customer that you are willing to give lower prices.

I suggest another tactic you can use with a new customer, especially if creative design is involved, is to raise your regular price 10 to 15 percent. This allows you to test your pricing structure and make sure you aren’t leaving money on the table. Printers create custom work. In the case of most custom manufacturing, the price goes up when the customer selects a manufacturer that provides better service and quality.

The primary reason that most printers are attracted to discounts and low price selling is that it replaces the best way to sell printing. The best way to sell is to get in front of the customer and ask for an order. The reason aso many printers are failing is that they hope that customers will call, ask for a price, and then buy because it is the lowest price they have found. There is too much competition to just sit back and wait for customers to call and then hope a low price will attract them to buy.

The only printers being really successful with that strategy are the low cost producers who maintain their margins by using production efficiencies and keeping sales costs low by selling over the Internet. The typical printer is still a job shop that custom produces every order to the customer’s specifications. Producing custom work has a higher cost and has to be sold at a higher price.

If printers are contacting customers, making sales calls, finding out what customers need, and asking for the order, they won’t have to use discounting and low prices to build sales. Printing customers, especially those who need creative services, are willing to pay to get the high quality and service that only a profitable printer can provide.

So when the next new customer asks for a price, take your regular price and raise it. You may find that the only one really concerned about low prices is you.

Keeping up with social media is tough. Between onsite visits to help printing companies prosper and use the new technology, researching how to use all the new tools, and writing about them, I try to keep up with my blogs, twitter posts, LinkedIn discussions, and Facebook visits. If you are sticking your toe into the social media pool, then you know what I mean when I say that “it is hard.”
My problem is time, but for most printers I talk to, their problem is content. Printers continually tell me they don’t know what to post on the various social media vehicles. A number of printers think that just posting on social media will make them look “needy” and like they are “begging” for work. They cannot separate sales messages from valuable information.
I tell them to keep it simple. What would you want to say to your customers if you were face to face? What information would you want to put in a customer’s hand that would make print buying easier for them? What would you want to train a customer to do correctly to make production easier?
I think any printer who can come up with answers to those questions will have hundreds of topics. Got a link that tells the difference between CMYK and RGB? Have a link that tells a person how to get the best photo from their digital camera? Have a source for online training for Publisher or InDesign that you would like to share? Any of these topics would be of interest to customer s and make you look like the printing expert you are if you would only share them through social media.
But too many printers hide their light under a basket. They don’t realize that sharing information will create a bond with customers that will lead to more sales. They think that offering unsolicited advice is too much like asking for a sale. They rather customers come to them and ask questions.
Customers aren’t going to buy from you unless you ask for the order. Customers won’t order unless they feel comfortable that they are dealing with a professional. You can become the local expert by using social media tools and your website properly.
If you can’t come up with content, it is because you are not out talking to customers. Once you find out what customers need by making a sales calls, you will have enough content to keep your blogs, Facebook, Twitter, and LinkedIn accounts active for months.