The 1st Step in Re-Urbanization - Ahead of the Sharp Curve - Buy Local

Part of the re-urbanization of this country is going to be driven by the Buy Local initiatives happening everywhere.  Buy Local initiatives will eventually emphasize a "Net Better" - Price competitive, better service and better products.

Buy Local will take much more than just saying "buy local"; it is much more than a lip service trying to get locals to stay in town rather than going to the malls or online. It is going to take collaborative efforts by local commerce and local politicians working together as well as educating their community.  Buy Local must become a destination. Buy Local must be price and service competitive.  Buy Local will require an online presence of products and services like many grocery stores are trying today.  As a matter of fact, a good Buy Local model will require all the exact products and services that a shopping mall provides to ensure success - plus more - educating the community on why Buy Local is good for them.  This is not an option, this is a must and will happen - it is just going to be a matter of who recognizes this first and takes advantage of the opportunity most.

SOURCE: Civic Economics - "Local Works!".
Commissioned by Local First.
According to an independent study commissioned
by Local First and conducted by Civic Economics,
approximately 73% more money stays in West Michigan
when consumers choose locally owned and
independent businesses.
By supporting locally owned businesses over their
national competitors, we are supporting our community:

Buy Local initiatives will require:

• Collaborative Advertising
• Collaborative customer sharing (being close together or easily cross accessible).
• Being price competitive with the Internet retailers.
• Collaboratively educating the community on "Local".
• reduced energy
• local jobs
• higher and broader tax base
• better schools
• better roads
• a safer community
• face-to-face service
• less travel time - more leisure time

Even the United States Postal Service (USPS) is getting into the Buy Local game; it's EDDM program and service, possibly its final encore, favors local business and does such at both a price and service level that its competitors cannot match.  EDDM targets local; as finite as an individual mail route (imagine real estate agents, the 500 homes around the one you are selling). - I have wondered if the USPS knew this upfront or was it just an unexpected by-product of their initiatives..

It takes collaborative efforts in development, entertainment and advertising. This makes "Local" a destination; it makes "Local" the mall.  Some places were created with this in mind (though upscale) like West Palm Beach, Florida's CityPlace.  Some places were converted such as Boulder, Colorado's Pearl Street Mall.

What we will end up with is "self sustaining communities" - a topic in vogue in both political and academia worlds.

Fixing the Local Print Business - The Biggest Target

 
It might be about the local postal store, franchise or independent.  Many years ago someone told me about a company (a start-up at the time) called Mailboxes, Etc. (now The UPS Store)  My original thought was, why use them instead of the post office?  I believed the business concept was flawed - I was way wrong.  Yes, many of these businesses are feeling the strain of the economy and being a franchisee, but the outlook for this group is very positive - just walk into one on any given weekday (especially after 2pm).  The question I have is - can the franchisors bring in higher margin products to more utilize their current foot traffic - and give the franchisee a chance to succeed?

Being a target market for LightsOn Graphics is the wrong phrase; it is much more a prediction. Postal stores provide a convenience that creates foot traffic and business in that it is hyper localized - one stop to send mail, UPS, Fed-X, get the boxes and packing you need to complete your mailing.  They have morphed from a post office box and shipping center to a business center providing copy service, document shredding, limited but critical office supplies, and limited emergency print (copies, business cards).  Just a side note - If you need shredding, buy a shredder.

Offering print and collateral marketing services is a natural expansion to their business; some would say they already do.  I tend to use Postnet in my examples because, not only are they in that postal store target bunch, but they also use a service that, from my research, provides nothing except the satisfaction that they can say, "we have an online print site".  No they don't, but that is just my opinion.  I have interviewed several small printers that use the same system - orderless (like zero) - they stretch to find value in something they pay for every month.  The system they use does provide marketing benefits and a few  convenience tools, but not sales.

Now that the market has been identified, we can start talking about the product and what makes LightsOnGraphics.com different (better) in both product and concept - see our forthcoming blog entries (or see an earlier taste - Fixing the Local Print Business).

In Review - Targets:

1. Postal Stores - because this is where the customers are.
2. Local Quick Printers with poor web presence.
3. Postal Store Franchisors Postnet, Postal Annex, Goin' Postal, etc.)
4. Quick Print Franchisors (AlphaGraphics, Minuteman Press, Sir Speedy)
5. Local Graphic Designers.
6. Vertical Market providers (newly identified)

Thank You For Reading.!.!

Bob

561-371-4113

Local: Competing with the Internet Print Giant in the Evolving Local Print Market and How I Plan to Disrupt (Fix) it.

Introduction
This is about much more than the local printer - it's about "Local" everything.  It's also about the impressions (mis-information) that Madison Avenue style advertisers can create.  The printing business is so typical of "Local"; maybe that is because I know it that way; maybe it is because it used to be so "Local".  I have described in past writings what consumers want: it's "NetBetter".  As a primer to this, one should read my "Understanding the Changing Print Market" article.  This is a long one - I hope you have time.

The Defensive Printer 
The first thing I tell people in business, or starting a business, is to never take your first step with or from a defensive position - wins will come few and far between if you do.  Knowing this, which all printers do (at least today's survivors), why do they still?  There are so many things that can be said when a client walks in and says "... can you match that $3.99 Vistaprint price?"  So many good answers exist that put you on the offense.:

• "We don't produce at that low a quality level".
• "Here is our price, see if they can match it" (I like this one best).
• "Here, lets sit down and try ordering some cards from Vistaprint; I'll match their price for comparable product" (when/if they do this you have won a customer forever).
• Next time you see them ask, "Hey, how much did you end up paying for those $3.99 cards?"
• When someone hands you a Vistaprint card, acknowledge such and show them the differences.  It will point out the importance of first impression and embarrass them in a similar fashion to them ripping their pants all without you looking like a jerk; after all you are only trying to help.  Any salesperson (someone who handles many cards) can "feel" a Vistaprint printed card - and that is never a good thing.

Let's provide some food for thought here.  This will include some research, opinions and some of my solutions.  Happy Reading.

The Price Comparison 

How much did you pay for
your Free Vistaprint cards?

So today I thought I would do a little market research and evaluate some of the pricing of Vistaprint - every local printer's primary nemesis.  So I went in to the Free Business Cards area to get the numbers I have heard people spout.

Free business cards were for the quantity of 250; 500 are $9.99 and 1000 are $19.99; all these are amazing prices - if this is what they actually cost.  I selected 1000 cards for comparison.

I was first asked how quickly I wanted them - this surprised me.  Your typical local quick printer will have your cards available for pickup in 3 - 5 days at no premium.  At Vistaprint, the following charges existed:

•   3 Day - $26.89
•   7 Day - $17.40
• 14 Day - $10.42

I have never had the luxury of having a customer say "get them to me whenever" so I am going to assume that most people, after going this far in the process, choose the "3 Day" option - after all, they need some cards!!!

Then came my choice of card stocks and finishes.  Now if you have ever felt Vistaprint Cards you know they are uniquely different.  The "Free Matte" stock is very light weight, almost like a heavy paper rather than card stock.  There are multiple levels of premium offering including both stock weight and finish.  I chose the second most expensive choice, which is on a premium stock with gloss finish.  I did not see a more specific description of the stock, but I recall in the past this being a 14pt card stock - a very acceptable card stock.  This choice added $18.74 to the price.

Then came the card's back.  If you want nothing done, it's $2.99.  Have them print "what you want" on the back - its $7.49.  The free version has a Vistaprint Advertisement on the back - How classy is that - sorry, I just laugh every time I see one of those "get your free cards.....".  I chose the $7.49 option.

Total Price for my Vistaprint Free Cards:  $73.11
(albeit I wanted 1000 rather than the 250).

Price sounds like less an issue when you know the facts.

Vistaprint screen image showing
the real cost of their Business Cards

I like so much the way Vistaprint advertises their "Free" and "$9.99" cards that we added a similar (better) product to some of our websites; a "$9.99 for 250" set of business cards.  We considered free, but we don't see the demand for the real low quality stuff especially after someone holds one. The Link shows you how we do it - it's not meant to sell you something - after all you are in the business. Get Your $9.99 Business Cards Here.

The Click Comparison
Wow, who has the time to do this?  Actually it isn't so bad, especially for the B2C market.

I had 15 clicks and each one required some review so it was not like just clicking "next", "next", "next".  Vistaprint is the ultimate in "would you like fries with that" website. We can all learn from what they do, even though I do consider, they do it to an extreme.

It took me just over a half hour to order my first card.  If I had needed to do a second, it would be substantially quicker; probably in the 15 minute range.  This is why Vistaprint owns the B2C market. In B2B, time is money and this is the first thing felt by the buyer or manager.  What if you needed to order a second set (or more)?

One could argue that Vistaprint saves the customer design expenses - it's not about you - ever been to a trade show and you get two identical cards from 2 (or more) vendors?  How can this happen with so many choices?  Popular is Popular. Click.
 
The Quality Comparison
I don't think much needs to be said here. Just feel the difference.  Next time someone hands you a Vistaprint card (I can tell by feel), simply say, "oh, you get your cards from Vistaprint?"  Listen to what they say - it's usually funny - it's always a sales opportunity.

The Vistaprint card is on top.The correctly sized card (2 x 3 1/2) is beneath.
Note the difference in size.

 Why The Local Printer Can't Compete
With a Branded Website

Local will win only if the "Locals" can work together.  Their growth must be about taking back the local and not fighting over someone else's local.  Get back the Vistaprint customer - educate the Vistaprint customer.  There are many branded websites out there (Their site, your name), but they are each unique; like many many small fish fighting for the same food.  There is a need to learn from Brick-and-Mortar examples.  Bill's Hardware can't compete with the marketing and buying power of Home Depot; but it can under an Ace or True Value Logo.  Want more info?  See the articles from May 2012 "Why Branded Websites Don't Work With Any Business, Especially with Local Printing", from April 2012 "Who Me, “Who Three” - Fixing the Local Print Business – Part Three"; and, also from April 2012 "Understanding the Changing Print Market".

Our Solution and Plan to Disrupt

We Love The
ACE Hardware Business Model
(We Will Improve That Later)

Our solution at LightsOn is to provide a uniform online collaborative brand; much like Ace Hardware or True Value Hardware does for the local Brick-and-Mortar hardware store.  When  you visit LightsOnGraphics.com note The local info (Your local info) on the right.  Our objective is to fill that with people in that local's graphics business.  Our plan is never to take your local business, we don't want the business from the phone call that the website generates, we simply want the business from the website - the order you would have lost anyway - with the local referrer/printer/designer getting an attractive commission.  Our Objective is to recreate the "Local" printer the way ACE Hardware recreated the Hometown hardware store.   How will we do this?  Read more.  Who Me, “Who Three” - Fixing the Local Print Business – Part Three. 

More to come.

Want more now?  Local Printers, Local Designers, Local Postal Stores - collaborate with us, collaborate with each other and Brand Local - turn the LightsOn in your home town. Call or email for more information.

Click

~Bob Leonard
rleonard@LightsOnGraphics.com
561-371-4113 

Local - Net Better

Buy Local - Ahead of the Sharp Curve - The 1st Step in Re-Urbanization

Part of the re-urbanization of this country is going to be driven by the Buy Local initiatives happening everywhere.  Buy Local initiatives will eventually emphasize a "Net Better" - Price competitive, better service and better products.

One of many Buy Local initiatives
in Maine near the Time4 offices.

Buy Local will take much more than just saying "buy local"; it is much more than a lip service trying to get locals to stay in town rather than going to the malls or online. It is going to take collaborative efforts by local commerce and local politicians working together as well as educating their community.  Buy Local must become a destination. Buy Local must be price and service competitive.  Buy Local will require an online presence of products and services like many grocery stores are trying today.  As a matter of fact, a good Buy Local model will require all the exact products and services that a shopping mall provides to ensure success - plus more - educating the community on why Buy Local is good for them.  This is not an option, this is a must and will happen - it is just going to be a matter of who recognizes this first and takes advantage of the opportunity most.

SOURCE: Civic Economics - "Local Works!"
Study, 2008. Commissioned by Local First.
According to an independent study commissioned
by Local First and conducted by Civic Economics,
approximately 73% more money stays in West Michigan
when consumers choose locally owned and
independent businesses.
By supporting locally owned businesses over their
national competitors, we are supporting our community:

Buy Local initiatives will require:

• Collaborative Advertising
• Collaborative customer sharing (being close together or easily cross accessible).
• Being price competitive with the Internet retailers.
• Collaboratively educating the community on "Local".
• reduced energy
• local jobs
• higher and broader tax base
• better schools
• better roads
• a safer community
• face-to-face service
• less travel time - more leisure time

Even the United States Postal Service (USPS) is getting into the Buy Local game; it's EDDM program and service, possibly its final encore, favors local business and does such at both a price and service level that its competitors cannot match.  EDDM targets local; as finite as an individual mail route (imagine real estate agents, the 500 homes around the one you are selling). - I have wondered if the USPS knew this upfront or was it just an unexpected by-product of their initiatives..

Buy.Eat.Live.Local.

This is what Time4 / LightsOn's Buy.Eat.Live.Local. publication helps to address. The theme / affinity is your hometown.

It takes collaborative efforts in development, entertainment and advertising. This makes "Local" a destination; it makes "Local" the mall.  Some places were created with this in mind (though upscale) like West Palm Beach, Florida's CityPlace.  Some places were converted such as Boulder, Colorado's Pearl Street Mall.

What we will end up with is "self sustaining communities" - a topic in vogue in both political and academia worlds.

Quality, and How it is Marketed and thus Perceived will Define Success.

There are many definitions of quality in business.  The ISO 9000 definition is the "Degree to which a set of inherent characteristics fulfills requirements". "The standard defines requirement as need or expectation".

Quality is something a product has when it is reproduced the same over and over and over to a defined set of specifications.  Some companies maintain quality by producing the product in one place.  Some companies maintain quality with well defined and well engineered systems.

Consumers buy quality - they know what to expect because of the quality.  This does not mean that the consumer is getting a better product. or even good product; the consumer just knows what they are getting. Having a better hamburger is not enough to compete with McDonald's just as having a better print product is not be enough to compete with Vistaprint.

Followup on "Who Me, Who Three - Fixing the Local Print Business" Can the Local Printer Survive?

 There is an economy of scale that the local quick printer (franchise or independent) needs to have to survive.  Read my blog entry "Who Me, “Who Three” - Fixing the Local Print Business", it will provide some further background and insight.

The local printer's first issue is utilization of assets which means increasing it's business.  Since they have higher end and more capable equipment than the new competition (office product stores and postal stores), they have a bigger financial mouth to feed.  Reduced copy business revenue and traffic and then losing some of the higher end business to online printers has made this difficult and their future questionable. It will require some aggressive creativity for these businesses to continue as an ongoing entity.

The local printer needs to aggressively network to two groups, the graphic designer and the local postal stores and signing them up as partner/affiliates (sound familiar).  This will require very attractive commissions be paid to the partners; so attractive that they wont want to do it with anyone else.  As it is said in the venture capital business, "Do you want to own a percentage of something or 100% of nothing".  It's a strong argument.  This is one of those areas where I can tell everyone the answer, and for one reason or another (can't execute, too busy, don't have talents beyond retail, etc), its doesn't happen. Let's just say they need to begin to collaborate with each other more aggressively.

The franchisors should be all over this as they need to help (save) their franchisees.  BetaGraphics (our make believe franchisor) needs to do more than educate, but actually push their local franchise into partnering with local graphic artists and postal stores, basically offering satellite franchises (BizOps) and relationships to the local BetaGraphics.  These people are looking for a solution that the local quick printer has.

What you read is the why our business model at LightsOnGraphics exists.  A player needs to unify the fragmented local market or the local market will ultimately disappear causing everyone to lose; quality will suffer (as it already is) and prices will ultimately rise.

Bob Leonard
561-371-4113

Collaborative Marketing Efforts Make The Impossible - Probable.

One misconception I have found in talking to prospective partners and affiliates is that they think we are selling them a website - we are not.  We are simply partnering to bring local exposure (everywhere) to LightsOnGraphics.com in exchange for the local exposure of the partner and affiliate resulting in local foot traffic, additional revenues and commissions (commissions from LightsOn Graphics).

LightsOn Graphics' business objective is to increase traffic to the LightsOnGraphics.com website, and the local partner/affiliate to appear when the user traffic is in their locale.  It is not to drive traffic to (or from) a local area. The results and objectives are achieved through collaboration and not brut force.

Taking this approach gives the local printer and postal store a chance to compete for the market which is slowly being lost to the major online printer(s) as described in this past blog entry - Understanding the Changing Print Market. 

Bob Leonard

“Who Four” - The Biggest Target - Fixing the Local Print Business – Part Four

"Who Four":  The local postal store, franchise or independent.  Many years ago someone told me about a company (a start-up at the time) called Mailboxes, Etc. (now The UPS Store)  My original thought was, why use them instead of the post office?  I believed the business concept was flawed - I was way wrong.  Yes, many of these businesses are feeling the strain of the economy and being a franchisee, but the outlook for this group is very positive in my opinion - just walk into one on any given weekday (especially after 2pm).  The question I have is - can the franchisors bring in higher margin products to more utilize their current foot traffic - and give the franchisee a chance to succeed?

Being a target market for LightsOn Graphics is the wrong phrase; it is much more a prediction. Postal stores provide a convenience that creates foot traffic and business in that it is hyper localized - one stop to send mail, UPS, Fed-X, get the boxes and packing you need to complete your mailing.  They have morphed from a post office box and shipping center to a business center providing copy service, document shredding, limited but critical office supplies, and limited emergency print (copies, business cards).  Just a note - If you need shredding, buy a shredder.

Offering print and collateral marketing services is a natural expansion to their business; some would say they already do.  I tend to use Postnet in my examples because, not only are they in that postal store target bunch, but they also use a service that, from my research, provides nothing except the satisfaction that they can say, "we have an online print site".  No they don't, but that is just my opinion.  I have interviewed several small printers that use the same system - orderless (like zero) - they stretch to find value in something they pay for every month.  The system they use does provide marketing benefits and a few  convenience tools, but not sales.

Now that the market has been identified, we can start talking about the product and what makes LightsOnGraphics.com different (better) in both product and concept - see our forthcoming blog entries (or see an an earlier taste - Fixing the Local Print Business).

In Review - Targets:

1. Postal Stores - this is where the customers are..
2. Local Quick Printers with poor web presence.
3. Postal Store Franchisors Postnet, Postal Annex, Goin' Postal, etc.)
4. Quick Print Franchisors (AlphaGraphics, Minuteman Press, Sir Speedy)
5. Local Graphic Designers.
6. Vertical Market providers (newly identified)

Thank You For Reading.!.!

Bob

561-371-4113

Why Branded Websites Don't Work With Any Business, Especially with Local Printing

Several of the larger trade printers will provide their customers with somewhat sophisticated websites for them to call their own.  There are several problems with these which are listed below.

1 - When there are more and more websites, especially websites that are both functionally and visually identical, the net result is noise in the market place (web market place).  The only people that are going to find these sites are people that the local printer tells.  This is a big negative in my mind as the job of the local printer is to service the local customer; sending the customer online is reducing service levels and introducing your customer to the online competition.

2 - Maintaining the website (just the prices) is a job in and of itself assuming the branded site allows you to determine prices.  If you have the time to spend on this, you may already be out-of-business.  My most commonly used 'line' for printers that say "We already have a website" is "how many orders have come in from your website" or "Have you ever had ANY order from your website?"

3 - Limited Product Line - Typically limited to the trade printer providing the branded site.

4 - Getting Traffic - As was pointed out in the first problem, you do not want to send your face-to-face customer to your website (EVER IMO).  SEO is a very very expensive process as it is a job, not a task - don't be sold SEO by the "expert around the corner"; in my opinion, 99% of the people that sell SEO are fraudulent and don't know the meaning...  Just my opinion ... as a friend of mine says, "tell me how you really feel...!!"  The other way to get traffic is Pay-Per-Click which is expensive, but very real; you will be competing with the big boys and you must position your products against the big boys to convert that click into an order.  Just a note, we estimate the cost of a converted lead in the printing business to be about $150 - How does anyone make money at it?  They do - maybe for some future blog entry.

Finally, I ask,  does anyone know a local printer whose website (branded from a trade printer, or their own home grown) makes them money?  I don't.  All I ever hear is people complaining (always off the record) about Vistaprint - sometimes they will spend 20 - 30 minutes telling me how Vista doesn't effect them - touch a cord..!!

What makes LightsOnGraphics.com different?  Follow me.

I need to start talking about the business rather than the business plan - soon.

Who Me, “Who Three” - Fixing the Local Print Business – Part Three

Just in case you did not read the last blog entry, “Who Three” is the franchise local printer and the independent local printer.  Forget for a moment that this group is the second of the target markets as the obvious (IMO) is explained here.

Why does the local printer need to collaborate with printers in other local areas?  Then, why do they need to become part of the LightsOn network to do so?

The local printer can't compete alone with the online companies like Vistaprint, PSPrint, Over Night Prints, etc, etc, etc.  Why?  Very simply those companies have invested heavily in Pay-Per-Click and SEO marketing for their online sites.  Pay-Per-Click has lower cost of entry but has costs for every click through to your site.  SEO has high development and maintenance costs but minimal to no cost per click. Both are very complex and expensive and are a game of numbers.  In addition, when many many try alone, they simply end up being noise in the search.

The first step is to collaborate with other companies that are providing copy/print/graphic services; not only local to you, but local everywhere.  Regretfully, this is much more than providing a franchise website - just ask yourself how much business you get from that website; is ZERO the right answer?  Maybe this website thingy doesn't work.  Ask Vistaprint...

LightsOnGraphics.com has been built, from day one, as a site for collaboration with the objective of taking back and to stop the encroachment of that business that Vistaprint is taking from the local print service provider.  Our expertise in print, SEO and collaborative systems will make print local again and make you locally, the printer again.

The second step is to collaborate locally with other service providers.  Local printers need to recruit local graphic designers, web designers and advertising companies; there are many locally everywhere.  Make what you perceive as competition today, your sales rep tomorrow.  Collaborate with them a variety of products and services that let them make more money as well as you make back some of what you are currently losing.  This will take some proactive marketing, sales and networking.  Franchisors - make these non-retail mini-franchises (biz-ops) around your franchises - Please - Steal This Idea.!.!.!

Our objective at LightsOn is not to move your business to our website.  When a client calls you from the our LightsOnGraphics.com website (I include you in "our") we strongly suggest you provide the service and sell that customer directly, bypassing the LightsOn site.  Our objective is not to get your foot traffic, but to get the traffic you are losing to online.

Take a look at our affiliate information, how we protect you, your client and your territory.  We are taking back business, not taking your business.

Next, "Who Four" - why local postal stores may be the local graphics shop of tomorrow.

Thanks again for reading

Bob

561-371-4113

Identifying the Opportunity - Having a Vision - More Cause (not the effect- yet).

As I have said before, even though my focus is local printers and saving the local printer, what I am saying can be applied to so many different businesses today.

Local printers are having a great deal of difficulty competing with the 'online mega-print website'; why?

1) Perceived price - the 'online mega-print website' advertises low prices that are not real, especially if you, the buyer, are really in business.  You don't want the printers information on the back of the card, you want it faster than 3 1/2 weeks, you want it to represent you and not some generic template and you want it on a card stock, not a heavy paper.  Of course you can pay for the "upgrades" that make it a normal business card, but then you would pay about the same, and sometimes more, than you would if you had bought it from the local printer (without the local printer guidance for you).

2) Advertising - the 'online mega-print website' can advertise in big ways, painting a picture that they are the norm.  They are not, but consumers don't interact enough with printers thus they have no knowledge of any other place to go.  This is why the online mega-print websites have won the B2C business, but have not been able to pierce the B2B opportunity.  Once your business becomes real, you no longer have the time to waste 45 minutes placing an order, wait 3-4 weeks (std delivery) for the order and then finally receive the inferior-undersized product.

In reality (in my head), the local printer needs to NOT try to fight this battle with the online mega-print websites; it is a waste of their resources and they can not convince the consumer until they experience both the product and process first hand.  The local printer must focus on real businesses.

A funny footnote... I was talking to someone last weekend about this and they said they liked the 'online mega-print websites' as they saved money, did not mind the 'online mega-print website' ad on the back, did not need it fast and the quality was not important.  I said, "your law firm orders from 'online mega-print website'"?  Her response was "Oh no. for my side business, they (the law firm) would never order 'online mega-print website' cards".

Finally, if the printer focuses on competing with 'online mega-print website' we will see the end to this local business and service and the cost of this product will only increase in the long run.

Yes, I think I have the solution and am getting around to telling you about it.  Visit www.LightsOnGraphics.com - figure out what we are doing.  Rolling this out on a broader basis shortly.