Why You May Find Your Next Print Services Provider In The App Store!

Corporations are not shy about outsourcing high volume print and mail to third-party providers. Most large enterprises have relationships for direct mail, presort and other commercial printing services. Indeed, the traditional model of outsourcing benefits an organization through a supply chain of providers that drives cost reduction and process improvement. Plus, outsourcing print and mail shifts the expense from capital expenditures to operational expenditures. As a result, a great many service bureaus and technology providers exist to meet the needs of these corporate clients.

Supply and demand is providing print service providers with a problem that threatens to marginalize the traditional model of business success. An example of this dilemma can be found by examining the Australian wine industry. Australia has some of the very best vineyards in the world, but to grow and expand into new markets a strategy was devised that positioned Australian wine to be a low cost alternative to other more well-known countries and more expensive wines. The strategy worked. Once-obscure Australian brands can be found in any local wine store and super market. But here’s the dilemma: Prevailing customer perception is that Australian brands are “a great wine at a low price.” While this may sound like a good thing, but customer perception ultimately marginalizes the Australian’s ability to compete in higher end, higher priced wines. To shift perceptions, the industry is now embarking on a strategy through partnerships that offer higher profile brands in hopes of breaking through.

Print service providers have a similar “great wine at a low price” perception dilemma. As most providers will tell you, it can be difficult moving to higher value marketing services. Indeed, print providers rarely get a seat at the table when CMO’s gather for discussions on more strategic branding and marketing initiatives. This is unfortunate since most PSP’s have are experts in data processes, document composition, and automated delivery. The truth is, however, that most PSP’s have neglected or been unable to change the low margin persona seen by their clients.