Technology-induced pain and suffering first felt by forms distributors and manufacturers has, to a great degree, "rolled down" to the rest of the graphic arts industry. It may manifest itself in the form of customer-produced print, displacement of traditional print by email, the emigration of prepress functions to customers or some other activity. The evidence is that God hasn't singled out the business forms industry for punishment; forms distributors and manufacturers were simply the first to experience the effects of the electronic revolution.
Little appreciated is the fact that DMIA members and readers of this publication pioneered a concept that's essential to the survival and success of all printers and distributors in 2004. In the forms business, it's known as "forms management." It achieved a level of sophistication and customer specificity years ago that some suppliers are striving to duplicate today.
Why isn't "forms management" more successful? Let me note first that the concept is generally successful. I'm asking why it isn't more successful. Even though virtually every segment of our industry has emulated the concept, considerable opportunity exists in this area.
Excuse my bias, but I believe the term "forms management" has outlived its usefulness, and is a detriment in today's selling environment. It's not that the word "form" is pejorative. The issue is that a buying organization usually considers forms to be just one element in its challenge of managing all of its print and promotional materials.
The term "customized distribution" may be a more accurate, meaningful description of the services that previously came under the umbrella of "forms management."
A major issue in successful selling in today's business environment is described by the academic community as "demassification." It's an awful word used to explain that perceived customer value in today's marketplace is tied to services that are individualized, tailored and customized. Product that, rightly or incorrectly, is seen as mass-produced--no matter how excellent the product--is viewed as a commodity, with price being the chief determinant of supplier selection.
Customized distribution programs provide an unexcelled opportunity to offer tailored services to customers while reducing vulnerability to competitors. These programs reduce churning within a customer base, provide regularity of business and usually lower transaction costs.
Upon reading this column, a typical reaction may be, "We know all this. We've been at it for many years." I understand. This column attempts to highlight two issues:
1. Costs of all aspects of distribution are increasing while the unit costs of printing have been decreasing because of withering price competition. The buying community is very sensitive to costs of storage, list maintenance, mailing, fulfillment, etc.
2. Words count. Use of the term "forms management" doesn't adequately describe the process. Its connotation is forms-only printing, storage and physical distribution. The term "customized distribution" better describes the wide range of tailored services that may be involved in a program devised for a customer.
A recent study indicated that companies offering both print and distribution services in 2002 derived about 40 percent of their profits from the latter. It's difficult to separate print from distribution services: One often can't be sold without the other. While I believe the 40 percent figure might be high, experience with our clients leads me to conclude that 30 percent is a reasonable number. That figure can be expected to grow in coming years.
Selling distribution services requires a mindset much different from selling print. Selling print involves finding work that fits the finite dimensions of equipment. Selling distribution services involves taking the time to fully understand a buying organization's business, not simply forms or printing needs. In any case, my advice is to both think and speak in terms of "customized distribution."
Contributing Editor Dick Gorelick is an award-winning authority on sales, marketing and business strategies for the printing industry. As president of the Graphic Arts Sales Foundation in West Chester, Pa., he travels extensively, consulting, writing and speaking on sales training.
