“So
many companies do not have an
online strategy,” says Osterloh.
“Without a strategy you
will be slower to react and the
slow reaction costs money. That’s
a problem when helping distributors
compete online with direct manufacturers
and third party companies trying
to sell printing.”
Distributors
and manufacturers who aren’t
selling even the most basic web-to-print
applications to their customers
risk losing business, because
eventually their competitors will
offer them. The technology has
advanced to the point where it’s
cost effective and relatively
simple to implement basic web-to-print
applications. Online storefronts
are particularly easy to set up,
with the potential to generate
significant margins from traditionally
unprofitable products such as
business cards and letterhead.
“Online reorder systems
are becoming very common,”
says printing industry consultant
Dick Gorelick, president of Graphic
Arts Sales Foundation, West Chester,
Pa. “It gives an organization
the ability to lower its procurement
costs by allowing several people
in the organization to place orders
without the company losing track
of where the expenditures are
coming from. It enables a $2 million-a-year
printer to sell to an organization
that might have 50 people ordering.
And procurement costs are saved
at the buying and the selling
end.”
Manufacturer
Ward/Kraft, headquartered in Ft.
Scott, Kan., offers several web-to-print
solutions. MyNetLabels uses technology
licensed from MaverickLabel.com
(see page 34), while Ward/Kraft’s
other offerings are custom-built
and maintained by an in-house
staff of three programmers. MyXpressLane
is a print management system offering
warehousing and fulfillment where
end users can order postcards,
marketing collateral and other
print materials. “We have
three of the largest companies
in the U.S. using MyXpressLane
through distributors,” says
Ward/Kraft Senior Vice President
of Sales and Marketing Michael
Del Chiaro. MyECompanyStore allows
distributors to set up a general
“print store” or a
customer-specific site where end
users can order business cards,
stationery, brochures and postcards.
MyESolutions gives distributors
a web presence where they can
sell stationery and other products.
Before
offering web-to-print solutions
to their customers, distributors
and manufacturers must decide
on how extensively they want to
invest in the technology. Some
companies need only a web
site where their customers can
easily place repeat orders for
stock products. Others, especially
those investing in digital printing
equipment, may offer customers
individual web sites and the freedom
to customize products in great
detail, and to order limited quantities.
Another
consideration is whether companies
want to rely on third-party vendors
to supply the software necessary
for web-to-print solutions. Often,
distributors partner with manufacturers
that offer the software and host
the web sites. Those manufacturers,
consequently, develop the technology
in-house, or they rely on an outside
vendor. (see “ASP vs. In-House
Technology” on p. 34)
Software
vendors and manufacturers have
facilitated the process by which
distributors can set up web sites
for their customers, but managing
the daily process still requires
time. To ensure a smooth implementation
of web-to-print strategies, designate
someone in the office to champion
the process. These employees don’t
need to be programmers, but they
should have some familiarity with
web design and IT architecture.
The
Basics of Selling W2P
Web-to-print
solutions offer customers greater
control and flexibility over their
print procurement. Customers who
need forms or marketing collateral
traditionally request quotes from
their sales representative by
phone, fax or e-mail. The sales
rep provides quotes and enters
the order. Before the order is
printed, the customer approves
a proof. The process can stretch
over weeks.
 Marketing
departments want their
own look and feel, so
they’re going
to go with somebody
who can recreate that
feel and add some personalization
to it.
Jeff
Prettyman,
executive vice president
Wise
Business Forms
Alpharetta,
Ga.
|
An
online storefront allows customers
to order print products immediately.
Before they place their order,
customers view and approve the
proofs in their browser. Behind
the scenes, web-to-print software
converts the proof to a print-ready
file. The process is streamlined,
saving the customer time and money.
Selling
a web-to-print solution is different
than other types of sales. The
first difference is that these
types of applications are not
approved by the company’s
purchasing department. “You’re
talking to a C-level individual,
like a vice president of marketing,
a CEO or president of a company,
and you’re solving a real
business challenge in their organization,”
says Jeff Prettyman, executive
vice president at Wise Business
Forms, Alpharetta, Ga.
Setting
up a web-to-print solution requires
a significant investment of time
as distributors and manufacturers
discover their customers’
needs. “Typically, the sales
process is much longer than getting
an order,” says Bob Saunders,
vice president of sales and marketing
at Printegra, Peachtree City,
Ga. “The knowledge base,
in getting to know and sell it,
takes substantial time and effort.”
One example is for salespeople
to approach customers who warehouse
significant amounts of stock product.
How do the customers order more
of the product? How much of the
product is rendered obsolete over
time and thrown away? Can the
product be printed digitally and
on-demand? “A distributor
has to go in and really understand
their customer, where the challenges
are, and talk to them about how
this is going to save them money
overall,” Prettyman says.
Even if the cost per piece increases,
distributors can illustrate to
their customers that the total
cost is lower.
Ultimately,
specific applications will differentiate
successful distributors and manufacturers.
“The use and applications
of the technology are more important
to understand than the inner workings
of the technology,” Gorelick
says. “The bottom line is
that the distributor needs to
understand the specific differentiated
needs of the customer to apply
the technology.”
The
Emergence of 1:1 Marketing
Online
storefronts are a valuable entry
into the web-to-print world, but
the technology is already widely
available. A quick search on the
internet reveals dozens of sites
offering 4-color business cards,
letterhead and postcards. Like
a company web site, online storefronts
are becoming conventional.
Despite
the increase in profitability,
products become commoditized when
sold from the internet. To effectively
leverage web-to-print technology,
distributors and manufacturers
must continue to offer value to
their customers. Custom marketing
is one area in which companies
have been successful utilizing
web-to-print capabilities to serve
clients’ needs.
|
 We
find more and more customers
accepting this technology
and willing to place orders
online.
Bob
Saunders, vice president
of sales and marketing
Printegra
Peachtree
City, Ga.
|
One-to-one
marketing takes the basic steps
of online ordering and processing
to another level. End users
not only can order postcards,
for example. They can upload
individual photos, add variable
text, create targeted mailing
lists and request fulfillment
of a direct mail campaign.
Online
storefronts are applicable to
virtually any industry, but 1:1
marketing applications are emerging
strongly in the automotive, financial,
education, nonprofit, gaming and
healthcare vertical markets. Franchises
and companies with multiple locations
are also prime prospects for web-to-print
solutions. “To support sales
reps across the country with a
central marketing department costs
a lot of money,” Prettyman
says. Web-to-print technology
allows those companies to decentralize
the print-buying process without
losing control over branding.
Individual employees can order
products when they need them,
but the sites restrict the users’
ability to change static information,
such as a logo.
W2P
in the Future
Web-to-print
technology continues to gain traction
among end users, but distributors
and manufacturers have resisted
adopting it for a variety of reasons.
They may consider the cost of
implementation too high, or they
may be unfamiliar and uncomfortable
learning how to use new technology.
They may be waiting for other
companies to prove that the technology
is lucrative.
Prettyman
sees opportunities for companies
that sell web-to-print. “I
think it’s a must in the
business world. Why it’s
taking so long for distributors
to embrace it, I don’t know,”
he says. “But those who
don’t, and those manufacturers
who don’t, could be in jeopardy
of losing business.” Web-to-print
applications are perceived by
end users to offer time and cost
savings. Distributors and manufacturers
who don’t respond face increasing
competition from companies that
do.
“I
would highly recommend that distributors
looking for ways to grow their
business embrace this technology,”
Saunders says. “We have
a small percentage of distributors
that have embraced this technology
right now. We have a larger percentage
that have dabbled with it. In
that case, their customer forces
them into it, or they lose that
customer.”
Saunders
also envisions the possibility
of nontraditional companies entering
the web-to-print market and competing
with distributors and manufacturers.
Companies with a strong internet
presence and expertise in on-demand
printing, such as FedExKinko’s,
could hire a sales force and call
on companies with web-to-print
solutions. All the more reason
why distributors and manufacturers
should invest in the technology
now.
Andrew
Brown is assistant editor
at Print Solutions magazine.
Email your comments to editors@printsolutions
mag.com.
Cover
story continued on next page...
The
use and the applications
of the technology are
more important to understand
than the inner workings
of the technology.