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JANUARY 2011 VOLUME 49, NUMBER 1 2011 STATE OF THE INDUSTRY Exclusive Print Solutions Report Reveals Trends Facing Distributors, Manufacturers PAGE 16 Finding Strategic Success with 11 Printing, Multichannel Marketing PAGE 26 Competition vs. Collaboration The New Business Landscape PAGE 34 Experts Articulate Clear Paths to Print Business Growth PAGE 38 Proliferation of Internet Printers Challenges Distributors PAGE 44

PRINT SOLUTIONS MAGAZINE January 2011 FEATURES PERSPECTIVES 04 EDITORS NOTE You Can Never Go Back By John Delavan 06 PRESIDENTS MESSAGE What to Watch For By Bill Prettyman 12 PSDA PROFILE Success in a Snap 16 COVER STORY Exclusive Print Solutions Report 2011 State of the Industry By Ivars Sarkans As digital technologies and print user preferences reshape the printing industry, print services distributors are in a unique position to follow trends and take advantage of demand for shorter r

EDITORS NOTE You Can Never Go Back JOHN DELAVAN, EDITORINCHIEF N Volume 49, Number 1 January 2011 PUBLISHER ot long ago, I bought a new smartphone. There wasnt anything wrong with my previous phone it made calls just fine, and when I bought that phone I became a textmessaging maniac thanks to its nifty keyboard but after a while I realized that what I liked most about that phone was its name the Samsung Rant. Best name for a phone ever, if you ask me, but clearly not a sufficient reason t

PRESIDENTS MESSAGE What to Watch For Successful leaders in the print distribution industry must anticipate key business trends and respond accordingly. BY BILL PRETTYMAN, PSDA PRESIDENT T Print distributors that offer strategic selling approaches will be at a greater advantage in winning business over those that only sell products and services. rends represent potential danger, but also opportunity danger because, if we fail to adapt to them, we may be out of business, and opportunity because

PRESIDENTS MESSAGE Marketing Spending Worldwide is Shifting Toward Digital Media Research by Magna Global, published by the CMO Council predicts that in 2015 online ad sales will constitute 21 percent of all major media spending up from an expected 16 percent in 2010. Forrester predicts that four in 10 marketers will increase spending on interactive marketing by cannibalizing direct mail budgets. All of us know this trend is upon us. The key is to determine what we are greater education. Wher

PSDA NEWS PSDAs CEO Summit Will Help You Rethink Your Business for 2011 Make a commitment today to attend PSDAs most important management conference of the year. During the 2011 CEO Summit, Feb. 911 at The RitzCarlton, New Orleans, you will hear from thought leaders from the print industry and beyond while working closely with fellow principals who have grown their businesses to more than 2.5 million in sales. The 15th annual CEO Summit is designed to broaden your perspective and to help you de

PSDA NEWS PSDA Preparing for 2011 Print Solutions Conference Expo Interested in exhibiting or being a sponsor at PSDAs 2011 Print Solutions Conference and Expo Maximize exposure for your company by participating in the premier annual event for the print distribution industry, scheduled for May 1719 at the Navy Pier Convention Center in Chicago. The event is the only national trade show designed for companies in the business of purchasing print and print services for resale or distribution to a

PSDA PROFILE Success in a Snap PSDA member Promo Print Solutions Inc. thrives on innovation and the creative spirit of its owner, Paula Condor. BY AMIE SHAK fter 20 years of working for her fathers company and running presses for five years, Paula Condor loved running presses so much that shed dream about it waking up, conveniently, just before it was time to clean up. Despite growing up in the print industry in her fathers business, Condor blazed her own trail, starting her company, Promo Pri

PSDA PROFILE Promo Print Solutions showcases many samples of its innovative work in its booth at PSDA events. Promo Print Solutions main focus is instore marketing materials. The company also offers about 25 different special effects for printed products. but sets up to a 3D structure of three or four panels in about one second. The Snap Mobile is very diverse, as it can be hung from the ceiling or shelf, can sit on the table or floor, can serve as a pole topper, direct mail piece, or brochur

EXCLUSIVE PRINT SOLUTIONS REPORT 2011 STATE OF THE INDUSTRY As digital technologies and print user preferences reshape the printing industry, print services distributors are in a unique position to follow trends and take advantage of demand for shorter runs, mix of digital and printed business communications, and better results from business promotion and marketing budgets. BY IVARS SARKANS 16 PRINT SOLUTIONS JANUARY 2011 PSDA.ORG

W hat do imprinted caps, Tshirts and pens have in common with forms, checks, labels and colorful posters They are all produced and sold by PSDA members. As a result, for the last 10 years, PSDA members have had an industry identity problem, which in turn creates strategic positioning challenges. While many manufacturer members can still be considered part of a forms industry, distributors have diversified far beyond the historical forms product base and now serve as a major distribution channel

2011 STATE OF THE INDUSTRY Exhibit A Printed Business Communications Market Print Services Distributor Segment Formtrac 2008 methodology, product classifications and estimated 2007 sales Product Category Estimated 2007 sales millions 1,185 398 990 615 148 3,336 388 995 452 1,120 288 455 3,698 7,034 1,045 8,079 Estimated 2010 sales millions 865 325 870 485 115 2,660 360 1,300 430 960 310 700 4,060 6,720 1,400 8,120 3year change millions 27.0 18.3 12.1 21.1 22.3 20.3 7.2 30.7 4.9 14.3

2011 STATE OF THE INDUSTRY Print Solutions Magazine Top 100 Distributors, August 2010 Product Envelopes top 10 sellers Plastic products top 10 sellers Promotional ad specialty products top 10 sellers Labels and tags top 10 sellers Commercial printing top 10 sellers Forms top 10 sellers All Services top 25 sellers Includes Marketing Services, Mailing and Fulfillment, Technology Internet Services and Miscellaneous Services Note Adding the above percentages will not give a meaningful result

2011 STATE OF THE INDUSTRY Exhibit B Printing Industry Segments Applicable to Print Services Distributors Printed Business Communications Products and Services Manufacturer Shipments Printing industry segments General commercial printing Quick printing Subtotal Business forms Note 1 Labels and wrappers Tags, tapes and tickets Subtotal Printrelated services Total market served by print services distributors 2,006 Millions 52,331 5,185 57,516 4,666 6,536 948 12,150 9,332 78,998 2,009 Millions 49,

2011 STATE OF THE INDUSTRY As digital mailboxes overflow and advertising messages are blocked or ignored by more computer users, the conventional mailbox and print will remain important to customers and prospects. comprehensive business communications and marketing support program sales. One example of this is provided in the fiscal year 2009 report from InnerWorkings, which indicates that 66 percent of its total sales resulted from enterprise programs and 77 employees were assigned to work at


Success in 2011 Opportunities for Growth Do 11 printing and multichannel marketing offer promise as pieces of a longterm business growth strategy Yes, but it may not be a strategy that all distributors or manufacturers should follow. BY HEIDI TOLLIVERNIGRO s we look ahead to 2011, where are the opportunities for business growth in the coming year What opportunities remain for print vendors and distributors, even as the United States strives to emerge from the prolonged recession First, its impo

SUCCESS IN 2011 OPPORTUNITIES FOR GROWTH personalized URL. When qualified email addresses are available, email is used to follow up with nonrespondents. Average Personalized URL Visit Rates and Response Rates by Application Application Personalized URL Visit Rate 10.6 percent 13.0 percent 21.8 percent 19.6 percent 35.9 percent PODi Cases 24 9 9 5 3 Personalized Response Rate 8.2 percent 9.8 percent 18.5 percent 18.4 percent 28.0 percent PODi Cases 46 19 28 13 10 Static Response Rate DMA data 3

This is one event that gets distributors and manufacturers together to collaborate on solutions that better meet the needs of our customers. Kevin Austin, Golden Pacific Systems Inc. REACH NEW HEIGHTS February 911, 2011 The RitzCarlton New Orleans, LA For 15 years running, the CEO Summit has been a premier event, bringing together leading distributors, manufacturers and suppliers to listen and learn from one another and from leaders within and beyond our industry. This years event features p

SUCCESS IN 2011 OPPORTUNITIES FOR GROWTH Moreover, marketers are increasingly looking for print and other media ultimately to drive viewers to the web. Print is still a critical component of such campaigns, but print pieces are designed to support a larger effort that is ultimately focused on tracking, selling to and maintaining relationships with customers online. Therefore, if you want to sell print, experience and savvy in online and mobile media will often be required. This reality is illus

What Every Distributor Should Know What advice does Lindsay Gray, coowner and vice president of Acculink, offer reseller clients when they want to start selling 11 and multichannel marketing services I often suggest that they avoid discussing the VDP variable data printing, pURLs persistent uniform resource locator and other elements in too great a detail, particularly pricing, until they have a clear vision of the overall strategy or challenge their customer faces, Gray said. Their goal needs t

Toyota as well. In my experience, the best marketing services companies are agnostic when it comes to selecting the appropriate communication tool. The best are very good at helping you identify the marketing problem that needs to be solved and then determining the best method to solve it. Sometimes its print. Sometimes its electronic. Sometimes its mass media. Many commercial printers, print manufacturers and distributors answered the poll as well. One of the surprises was that, when allowed to

Working Together to Win While healthy competition will always remain a mainstay of any industry, some print distributors have identified opportunities to work together and grow sales through mutual trust, cooperation and communication. BY DARIN PAINTER

P hil Schmidt had a dilemma. One of his largest customers, which had been storing product literature for its 60 branches at its main office in St. Louis, decided to outsource the warehousing of those materials. The company asked if we could handle that service, said Schmidt, president of Advanced Marketing Partners, a PSDA member distributorship in Livonia, Mich. At that point, we hadnt stored anything for anybody. But naturally, I said, Sure The client told Schmidt two other companies presum

WORKING TOGETHER TO WIN 500 credit limit. IBG then showcased its online ordering website to those firms. Expert View an Industry Partnership Like a Marriage If youre considering forming a strategic partnership with a fellow distributor, the key is to find a company with unique capabilities and insight but with the same core values as you, says Ed Rigsbee, author of PartnerShift Developing Strategic Alliances. The best advice is to treat the relationship like a marriage. You must successfully

are no longer appropriate, Green said. Viewing business through the prism of competition made sense a halfcentury ago. The issues were about gaining and managing largescale production and distribution. Bigger really was better, just as the competitive theory suggested. But today, he says, economy of scale is no longer a key issue. In industry after industry, the cost advantage of volume production has been largely eked out. Instead, businesses overlap and intersect, and savvy firms realize thei

Expert Guidance for 2011 Our roundtable of industry experts can help you chart a clearer path to business growth this year. BY DARIN PAINTER 38 PRINT SOLUTIONS JANUARY 2011 PSDA.ORG

T he print industry enters 2011 at an important crossroad. One road seems to be defined by doubt the industry is struggling, its signs say, so proceed with caution. Another path seems awash with opportunity new mountaintops lie ahead, its travelers believe, so speed up with vigor. Which path embodies the one your company is taking What will you and your coworkers do this year to help shape trends, not just react to them Print Solutions recently spoke with several experts who can help your co

EXPERT GUIDANCE FOR 2011 KEY ISSUE We Need a Combined Voice The print industry doesnt lack potential or even power it lacks presence, says Ben Cooper, executive director of The Print Council, a group that launched in 2002 to influence and promote the greater use of print media through education, awareness, market development, advocacy and research. Distributors and manufacturers lack a combined voice stalwart enough to convince society atlarge and marketing professionals in particular that prin

EXPERT GUIDANCE FOR 2011 KEY ISSUE We Need Access to Customer Data Today, access to data is just as important as knowledge of printing, maintains Joe Rickard, founder of consultancy Intellective Solutions. If the door to future growth is in front of your company today, the right key is information about your own companys strengths, about your clients goals, about your prospects points of pain. Its easy to underestimate the ability to listen, but companies that understand what customers want an

afraid to downsize or implement difficult initiatives. Managers in these companies work diligently to obtain a target capital structure and rely on sound financial benchmarks such as ROI before investing in new technology. Muir Successful distributors are using social media tools such as Twitter, Facebook and LinkedIn. Most companies are intrigued by social media, but unfamiliar with how and where to start implementing it. Think strategically about what you could do Where are you, and where do y


A Tangled Web The proliferation of internet printing sites is forcing distributors to pursue new strategies to maintain and grow their businesses. BY ANDY BROWN nline retail printing sites arent new, but the number and diversity of available products continue to grow. The question for print distributors is whether these sites help or hurt their businesses. The immediate effect on distributors is twofold First, there are simply more sources of printing available to potential customers. Second, th

A TANGLED WEB PSDA Members Supporting ECommerce Clients look to online printing sites because theyre easy to use and offer nd transparent pricing and product information. Distributors can replicate these cate features by offering their own ecommerce solutions. Printers and thirdparty software vendors make it possible to create custom storefronts for individual or clients, so they can order products from a webbased system that funnels orders to the distributors manufacturer partners. Here are a

Get Smart Without the rapid technological advancement of smartphone technologies, the future success of your print business is literally in the palm of your hand. BY FORD SAEKS

I f someone told Alexander Graham Bell that one day his invention would evolve into a device that could turn your lights on and off, he would have taken your temperature with a mercury thermometer, which incidentally, in 1876, hadnt changed much in more than 100 years. Remember when cell phones first emerged Chances are you were just as cynical as Bell. You probably made that first call with a furrowed brow, skeptical about the possibility it promised. You were confident that your call wouldnt

GET SMART why popular apps can grow in use so fast with virtually little marketing expense. Engage Mobile Customers Via Social Networks If youre not friending and following, tweeting and YouTubing, youre missing out on a lucrative opportunity to connect and engage with your target markets. Social networking has leveled There are hundreds of videosharing websites, but start with YouTube because its so well known. Keep your videos short, authentic and to the point. If you have a larger message,

Got Technology Printegra offers superior online technology combined with nationwide locations and short run manufacturing expertise to create a onestop shop for business documents. Whether your print program is national or local, Printegra can save you time, energy and money. Call us today at 8004226070 or visit our web site at to find out why they call us the short run industry leader. Checks Forms Document Security Integrated Products Print Shop Products Online Print Pro

CASE STUDY For the Kids Variable data printing technologies help one PSDA member company to develop an extraordinarily successful fundraising campaign for a private school. BY KATHERINE HOUSE In this case study, Print Solutions showcases how personalization of a school fundraising brochure not only resulted in a substantial increase in donations, but also positive feedback from families who wanted copies of them as keepsakes. Client Hebron Academy, Hebron, Maine, a coeducational boarding and d

device provides spaces for parents to provide a credit card account number and to check boxes indicating how they would like their gift to be used. The reverse side is personalized with the students first name, as well as the parents names and address. There are spaces to write in phone numbers, as well as the amount donated andor pledge for the future. Parents could detach the reply device and insert it into a postagepaid return envelope that was stuffed in the piece. The brochure was tabbed sh

CASE STUDY In a testimonial the school provided for MPXs website, an official said, MPX designed and coordinated a variable direct mail piece for us, and it is gorgeous. We looked at each and every one, and we are thrilled with the output. As a result of the mailing, we got a large gift from a donor who had never given at that level before. In addition, the piece was a grand prize winner in Print Solutions magazines PEAK awards competition in the Digital Printing, VDP, B2C, category. This was o

INDUSTRY NEWS COMPILED BY FRANCES MOFFETT News Staples Advantage Acquires Business Forms Manufacturer PRINTSouth Corporation PSDA member Staples Advantage, the businesstobusiness division of Staples, announced that its print solutions business has acquired fellow PSDA member company PRINTSouth Corporation operating as Miami Systems, a prominent U.S. manufacturer of business forms. Customers of Staples Print Solutions and Miami Systems are expected to benefit from expanded product and service o

INDUSTRY NEWS Kodak will market a proprietary suite of secure image technology products under its own international trademarks, trade names and brand names. Pacific Printing Acquires Premier Color Graphics NAPL announced that Pacific Printing Inc. of Fresno, Calif., headed by Brad Stiers, has acquired all assets of Visalia, Calif.based Premier Color Graphics Inc., from its founder and President Wayne Yada. Pacific will continue to be headquartered in Fresno and operate as Pacific Printing Inc.

INDUSTRY NEWS People The Flesh Company Names New Marketing Director PSDA member The Flesh Company, headquartered in St. Louis, Mo., recently announced the addition of Roger Buck as marketing director. Prior to joining The Flesh Company, Buck served as president of Emerging Solutions Now, a consulting firm serving the printing industry. We are thrilled to have Roger joining our team, said Mark Gerling, The Flesh Companys executive vice president, sales and marketing. Roger is a seasoned industry

INDUSTRY NEWS size, denser black ink and a new matte printing effect option. At 26 inches, the long sheet option delivers 27 percent more printable area. The benefits of this longer sheet include reduced waste and increased productivity, while enabling new applications, such as sixpage brochures, posters, larger dust jackets for books and a variety of labels. Learn more at product detection, conveyor horseshoe design for easy loading and unloading, selection switch for single or

INDUSTRY NEWS Zevrix Releases PDF Checkpoint 1.3, Automates Preflight Workflow Zevrix Solutions, which provides automation and productivity solutions for Adobe Creative Suite software, PDF and graphic file diagnostics, as well as Microsoft Office on Mac OS, recently released PDF Checkpoint 1.3, a feature update to its PDF preflight and conversion solution. PDF Checkpoint automatically preflights, exports as images, splits and optimizes Adobe PDF files. The program is equally suitable to process

INDUSTRY NEWS and DMP3000 printers, introduced in 2005 and 2009, respectively. All three printer systems come with a drop watcher, fiducial camera, heated vacuum platen, automated printhead maintenance and cleaning, PC, monitor and easytouse software. Canon U.S.A. Launches New Category within Large Format Printing Lineup Canon U.S.A., Inc., a leader in digital imaging, announced the addition of five new large format imaging solutions to its imagePROGRAF lineup with the new imagePROGRAF iPF MFP

CLASSIFIEDS BUSINESS FORMS COMMERCIAL PRINTING DIRECT MAIL ADVERTISE WITH THE INDUSTRY LEADER Market your companys products and services in Print Solutions and reach the premier audience of print distribution professionals. Contact your Print Solutions sales representatives Dave Merli 202.367.1219 Ryan Abell 202.367.2332 HEALTHCARE 62 PRINT SOLUTIONS JANUARY 2011 PSDA.ORG



CLASSIFIEDS PRESSURESEAL MAILERS TAGS LABELS TAGS LABELS Companies that advertise in Print Solutions provide vital financial support for the Print Services Distribution Association PSDA and deliver products and services of tremendous value to print industry professionals. When you seek additional information from these companies, make sure to mention that you saw their display ads in Print Solutions and thank them for their continuing support of PSDA. ADVERTISER 4Over Inc. BW Press Broker


BUYERS GUIDE ADDENDUM The following PSDA member companies had incorrect or missing listings in the October 2010 issue of Print Solutions, which featured the 2011 Buyers Guide. Print Solutions sincerely regrets the prior errors and omissions. All Barcode Systems Inc. 7241 Garden Grove Blvd., Ste. L Garden Grove, CA 92841 7148937032 8888937033 Fax 7148937231 All Barcode Systems manufactures selfadhesive labels and tags and distributes the

FINAL THOUGHTS 2011 Workplace Trends Boosting Employee Engagement Is Critical to Success BY CLAUDIA ST. JOHN AND CRYSTAL JACOBSON involvement, enthusiasm, motivation and willingness to acting in ways that are in the interest of the company is also declining According to a Hewitt Associates study, approximately 46 percent of surveyed organizations witnessed a decline in employee engagement in the quarter ending June 2010. This is cause for concern, given that employee dissatisfaction and lack

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