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

Talk - Demo - Talk - Demo, etc... and Loving It

 I am enjoying the reception and feedback I am getting from postal stores as we prep to sign up our second phase of "BetaLocals".  They so clearly understand new business opportunities and the value of a referral and a customer.

The biggest obstacle seems to be developing an understanding of collaborative relationships and marketing as well as collaborative branding and collateral.  Read our thoughts on collaboration and then what the local printer needs to do.  Learn a little more about collaboration at Wikipedia.

The print stores are going to be a different animal as we start to roll that out in a couple weeks.  Because of the tightly reined in and restrictive UFOCS, we may have to limit our sales effort to the franchisors.  The "why's" on why they should will be the subject of a forthcoming blog entry.

Bob

“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.

Identifying Potential Clients - Those That Have "Bad" and "Really Bad" Web Presence

The "Who's" have been identified.  For the local printer there seems to be only two types of web sites; "Bad" and "Really Bad".  The classifications are limited to printers, but since that is the subject of my white paper / business plan, it is here.  This is obviously going to sound self serving to LightsOn's business model, but identifying these weaknesses and niche / cracks in the market are part of any business and execution plan.

The "Bad"
Several large trade printers provide local printers with branded websites at little to no cost.  The local printer gets a good site that brands themselves.  The trade printer gets many local representations of their products. Why don't theses "Bad" websites work?

• Products are limited to what the trade printer supplies (the trade printer that provided the branded site for the local printer).
• The local printer has limited price control (None IMHO).
• Local printers buy from multiple trade printers.
• Branded sites do not help to promote service nor foot traffic to the local printer.
• Branded sites have failed for the local printer in the market place. 

The "Really Bad".
This one is kind of funny to me because many of these sites are only for the purpose of being able to say: "yea we have a website too" (IMO).  Actually, they are much more, but the much more in about preservation of business rather than growth and new business. Regretfully, when you are in defensive mode, and your competition is on the offense, there is only one direction for the ball to go (there are very few interceptions in business).

Sampling of their customer sites:
A PostNet Site

I am not sure where to begin - what I do know is, the printers that use this product are our target.  They so obviously want more.  I always tell them to ask themselves - Have you ever received an unsolicited online order?  - Not one where you told the customer to go there and upload their files.  Some local printers actually pay for this ....  and wow, I will be asking them all... "who owns your domain name?"

No wonder Vistaprint is winning.

bob

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