Let's Start with Reining in the Banks - A Localization Fix

I originally released this article a couple years ago - some bank mistake, magnified by it being a national bank had occurred.  Bank deregulation amplified these mistakes making these national mega banks not insurable by the FDIC (even though they do - and tell us they do - it makes us feel better (?)).  Through deregulation, bank mistakes are magnified and local money becomes a foreign investment.  There is a very simple financial principle that makes this very understandable - portfolio theory; if one local bank goes out of business, the FDIC can cover it; when a mega bank goes out of business, not only do we the people lose, but we the people feel it.  Mistakes happen (i was a proponent of the deregulation of banks); it about time this one gets fixed.  Like Politics, all money is local.

Now the original article (with a few small modifications).

Until the 1970s, banking was governed primarily by state laws, and banks could do business only in their home states. From the mid-70s through 1999, a series of laws deregulated banking eliminating state lines until banking became completely deregulated; those laws and acts included:

• Marquette Decision (1978)
• The Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA)
• Alternative Mortgage Transactions Parity Act of 1982 (AMTPA)
• The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA)
• The Gramm-Leach-Bliley Act (GLBA), also referred to as the Financial Services Modernization Act of 1999 

In my opinion, deregulating the banks was one of the biggest mistakes that our government made (allowed) over the last 30 years, but I can only say that in hindsight.  I believed in deregulation of all commerce; only wisdom has taught me differently.

So why did deregulation occur?  Technology, competitive opportunity and expansion, a spreading of the capital to where it was needed, and finally, an economy of scale - a more efficient system.  All of these reasons make sense - most occurred and some did not ("...banks peak in efficiency when they reach the size of a small regional institution". says Stacy Mitchell of The Institute of Self Reliance - watch her TED presentation).

So why was deregulation bad? Very simply, money no longer had to stay close to home.  Banks could invest your money in projects and products anywhere.  Since the idea of business is "to profit", money went to where the most profits could be obtained (the money business is much different than services or manufacturing where location in significant).  Sometimes the money went to bad mortgage instruments - the rules allowed this.  Sure there were problems like the ones the media made big, but things like big bonuses were earned by creative smart people working within the rules - oh yeah... Having banks working within state boundaries would have greatly limited the size of those bonuses as well - simply, the market would not have been as large.

So what is the solution here?  Keep money local - local mortgages, local business, local commerce, local people.  In my opinion, moving banks back to being state regulated would solve the problem.  This is a monumental task that some people would scream out to be impossible to accomplish. It's not.  It was done with ATT (modern history)  and Standard Oil (early in the 20th century); in both cases, the sum of the parts were greater then the whole as competition and creativity boomed.  So, how?  It will be a process much like, but much easier (IMHO) than the aforementioned examples.  Regretfully, only the people would share this interests - the banks, their lobbyists, and most importantly, the money would have no interest in this.  I would be perceived by the money (and thus the media) as a flaming liberal - whatever.

Bob Leonard
561-371-4113 (Call My Cell) 
512-593-8830 (in Austin)

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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

Collaboration: Localization: Is Buy Local a Collaborative Effort?

Collaboration is an "in vogue" topic these days.  "Buy Local" is equally, if not more so, in vogue.  But we really need to understand that these efforts did not begin yesterday.

A newspaper is a collaborative effort being managed by the newspaper company local to the area the newspaper is delivered with each of the advertisers sharing in the cost to produce the newspaper leaving some extra money as profit for the newspaper.


A strip mall (or any mall for that matter) is a collaborator in that the businesses, through a management company / owner / landlord, share costs. From the parking lot, to the signage, to the walkways (common areas) - a cost sharing collaborative is taking place.  The businesses share more than that, they share customers; the customer may come for one specific purchase, but see all the other "opportunities" (other stores).  It is why businesses like to rent where there is a popular "anchor" store (like a large grocer); because they can ride the coat tails of the anchor and collaborate as a larger force.

Collaborating is much more than good business, it is business.

~B

Re-Urbanization - Let's Start with Reining in the Banks

Until the 1970s, banking was governed primarily by state laws, and banks could do business only in their home states. From the mid-70s through 1999, a series of laws deregulated banking eliminating state lines until banking became completely deregulated; those laws and acts included:

• Marquette Decision (1978)
• The Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA)
• Alternative Mortgage Transactions Parity Act of 1982 (AMTPA)
• The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA)
• The Gramm-Leach-Bliley Act (GLBA), also referred to as the Financial Services Modernization Act of 1999 

In my opinion, deregulating the banks was one of the biggest mistakes that our government made (allowed) over the last 30 years, but I can only say that in hindsight.  I believed in deregulation of all commerce; only wisdom has taught me differently.

So why did deregulation occur?  Technology, competitive opportunity and expansion, a spreading of the capital to where it was needed, and finally, an economy of scale - a more efficient system.  All of these reasons make sense - most occurred and some did not ("...banks peak in efficiency when they reach the size of a small regional institution". says Stacy Mitchell of The Institute of Self Reliance - watch her TED presentation).

So why was deregulation bad? Very simply, money no longer had to stay close to home.  Banks could invest your money in projects and products anywhere.  Since the idea of business is "to profit", money went to where the most profits could be obtained (the money business is much different than services or manufacturing where location in significant).  Sometimes the money went to bad mortgage instruments - the rules allowed this.  Sure there were problems like the ones the media made big, but things like big bonuses were earned by creative smart people working within the rules - oh yeah... Having banks working within state boundaries would have greatly limited the size of those bonuses as well - simply, the market would not have been as large.

So what is the solution here?  Keep money local - local mortgages, local business, local commerce, local people.  In my opinion, moving banks back to being state regulated would solve the problem.  This is a monumental task that some people would scream out to be impossible to accomplish. It's not.  It was done with ATT (modern history)  and Standard Oil (early in the 20th century); in both cases, the sum of the parts were greater then the whole as competition and creativity boomed.  So, how?  It will be a process much like, but much easier (IMHO) than the aforementioned examples.  Regretfully, only the people would share this interests - the banks, their lobbyists, and most importantly, the money would have no interest in this.  I would be perceived by the money (and thus the media) as a flaming liberal (whatever that means).

Bob

hmmmm...  no commercial opportunity here - just more foundation to the Local idea.

.

Localization - It's about Much More Than Printing.

Let's make this country a better place and there is no better place to start than in our own hometowns.

As anyone who follows this blog or knows the Time4 and LightsOn initiative; it is quite simple: Make Our Customer Succeed.  We are all about recreating local in a world that knows more about a Jersey Shore celebrity than their own neighbor.  Lets fix this by starting in our own home town.  The following three past articles give some background to this idea.

• Collaborative Marketing Efforts Make The Impossible - Probable. 
• Followup on "Who Me, Who Three - Fixing the Local Print Business" Can the Local Printer Survive?
• The Post Offices (USPS) Encore or the Beginning of the End

Over the last couple months we have been testing our "Buy. Eat. Live. Local." concept with the purpose of moving "Buy Local" from a lip service to a way of life - our lives and our future.  We have made the objective of "Buy. Eat. Live. Local." a product (evolving as it is) to help communities across the country by providing it to local entrepreneurs who, most importantly, live there, work there and buy there.  Have you ever been there?

"Buy. Eat. Live. Local." is the coming together of many environmental, business, social and economic factors.  One of the biggest factors is the forth coming re-urbanization of America over the next 20-30 years which I will be writing about extensively.  For those as old as I, think about it as Megatrends 2013.

How well grasped is this concept?

Here is the Town of Windham Maine's ad - a paid ad - giving 10 reasons why this just makes sense.  So Shop Smart and Shop Local.

 ....and here is what we say:

”Natural Communities Form Around Community and Commerce Centers”.

Buy. Eat. Live. Local

In almost all cases your Windham merchant will provide
Better Service at a Better Price with Less Hassle.

Why?  You know them – They depend on Windham people and they live in Windham.

Buy. Eat. Live. Local and watch Windham grow.

 This is not a concept coming to your home town, it's already there !!!