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50 years of publishing excellence 19622012 JANUARY 2011 VOLUME 50, NUMBER 1 STATE Economic Turmoil, Diversification Drive Print Industry Changes in the New Year PAGE 20 Cracking the Codes Lessons Learned From Recent QR Usage Data PAGE 28 OF THE MARKET Winning the Business 21 Tips for Answering Your Next RFP PAGE 38 Postal Priorities PAGE 48 5 Strategies to Boost Direct Mail Effectiveness

PRINT SOLUTIONS MAGAZINE January 2012 FEATURES PERSPECTIVES 04 EDITORS NOTE The Big 50 By John Delavan 06 EXECUTIVE VICE PRESIDENTS MESSAGE Sustainable Intensity By Matt Sanderson 10 PRESIDENTS MESSAGE Planning for Success By Bill Prettyman 20 COVER STORY State of the Market By Ivars Sarkans The view of the print industry from the distributor perspective is largely positive, but technologydriven changes in the printing business entering 2012 will force distributors and especially manufact

EDITORS MESSAGE The Big 50 BY JOHN DELAVAN, EDITORINCHIEF Volume 50, Number 1 January 2012 M arking milestones is a cornerstone of life. We routinely celebrate birthdays, wedding anniversaries and other key dates. And people often gauge their successes through the prism of milestone time frames i.e., Ive lost 20 pounds in only 10 weeks, or I quit smoking one month ago, and Im still going strong. PUBLISHER Matt Sanderson msandersonpsda.org 312.673.5822 EDITORINCHIEF John Delavan jdelavan

EXECUTIVE VICE PRESIDENTS MESSAGE Sustainable Intensity BY MATT SANDERSON, PSDA EXECUTIVE VICE PRESIDENT Intense people get through things. Teams that are fueled by sustainable intensity persevere. B efore my wife and I had children, I used to exercise a lot more than I do now. I ran a few marathons and competed in some triathlons and I took both pretty seriously for five or six years in my 30s. One of my favorite training activities was to attend an indoor cycling i.e., Spinning class at m

EXECUTIVE VICE PRESIDENTS MESSAGE required i.e., go out too hard and burn out and others will overestimate whats required and will finish with fuel still in the tank. One of my favorite Spinning instructors had a masterful line Ask yourself if you can increase the resistance and still be OK for one minute. It worked every time he always got just a little more out of us. And, at the same time, he kept us coming back for more. Regardless of the size of your company or team, if you manage people,

PRESIDENTS MESSAGE Planning for Success BY BILL PRETTYMAN, PSDA BOARD PRESIDENT ave you finished setting your company or individual goals for 2012 If you are a leader or a manager, do your people know what the goals are More importantly, do they understand the plan and the path to achieve them For many of us, putting a business plan together seems like an overwhelming task. However, it is a must for all of us in the printing industry if we are to take advantage of opportunities and to survive,

PRESIDENTS MESSAGE reached. Relevant goals are worthwhile objectives that we are willing and able to work to reach. Timebound goals have specific deadlines attached to them, and the target dates help to create a sense of urgency. The deadlines help to keep the team from getting too tied up in daytoday activities that are not relevant to the goals. An example of a SMART goal would be Grow print revenue 1 million by Dec. 31, 2012. This goal is specific grow print revenue 1 million, measurable 1 m

PSDA NEWS PSDA Launches Templates and Toolkits Resource Center With the help of several member companies and volunteers, PSDA is pleased to announce the launch of an online repository of templates and toolkits providing standard documents e.g., noncompete agreements, sample marketing collateral, HR materials, etc. that members can leverage in sales, marketing and general operations. This is a great first place to turn when encountering a new situation or if you are simply looking to make improv

PSDA NEWS PSDAs 2012 CEO Summit March 57 in Phoenix, Arizona PSDAs CEO Summit is where change agents from within our industry and beyond come together to share and develop new ways to tackle challenges and maximize opportunities. If youre a distributor, manufacturer or supplier who wants to grow your business in 2012, this is where you need to be. This years program focuses on finding opportunities in the changing economy and industry, and features a keynote address by Dr. Joe Webb pictured ti

PSDA PROFILE Committed to the Customer PSDA member Datatel Resources Corporation credits its longtime success and growth to specialization in an increasingly diverse and competitive marketplace and its unwavering focus on customer service. BY FRANCES MOFFETT ongevity and stability are two factors that have positioned PSDA member Datatel Resources Corporation for lasting success. Datatel, based in Monaca, Pa., has been in business for 55 years 33 of those under its current ownership and manage

PSDA PROFILE Growing Market Share Although many challenges face the industry today such as new technologies and the evertemperamental economy Simon maintains that those who are aggressive in their desire to grow market share will still have opportunities. We believe that success is directly related to a proactive sales effort, he said. We take on an attitude that if the industry demands low costs, superior quality and worldclass service, then lets give it to them. The reality is that there is

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STATE The view of the print industry from the distributor perspective is largely positive, but technologydriven changes in the printing business entering 2012 will force distributors and especially manufacturers to adapt to the times. BY IVARS SARKANS 20 PRINT SOLUTIONS JANUARY 2012 PSDA.ORG OF THE MARKET

I f change and turmoil in all segments of the printing industry spell opportunity, then this is the best of times for printed product suppliers. Most traditional print producers and offset press suppliers will probably not agree with this view, but from the current distributor perspective, the state of the industry is good. The flexibility and adaptability of the distributor business model give it great advantages as the balance in printing industry opportunities shifts from products to printre

STATE OF THE MARKET use all available channels of distribution to achieve full utilization and adequate returns on investments. Print producers will face aggressive pricing demands from both end users and distributors, which will continue to drive plants with older equipment and belowaverage productivity out of business. At the same time, the relentless advances in digital communication alternatives to print will continue to shrink some segments of the industry to the point where recovery to 20

STATE OF THE MARKET member WorkflowOne, which reported aboveaverage sales of forms and services in 2009. The additional estimate of overall distributor product mix profile is based on a variety of industry sources and applies to approximately 8 billion of total printprimary distributor sales. this category. Marketing services largely has been the domain of advertising agencies, and most distributors have limited capability for competing with them. Distributors currently are far more successful

retirement of four print professionals has become a constraint on business growth. The best replacements seem to be people with sales experience, but even with careful selection, disruptive turnover is part of bringing successful new salespeople into the organization. Advertising specialties are a key product line path to a profitable volume level for new salespeople due to the longer time needed for training in print and printrelated services. Emerging Opportunities For growthoriented distribu

STATE OF THE MARKET stream of profitable new business from new accounts. The Next Five Years The next several years will be a period of consolidation among both distributors and manufacturers. The trend is toward larger distributor organizations that can finance the ongoing investments in technology needed to support MS programs and compete with product sales over the Internet. Gradually, common products that can be created as templates to be sold, ordered and customized over the Internet will

QR Codes Lessons from the Data While QR code and 2D barcode usage statistics vary and the implications of the data are not always clear cut it remains evident that the technology has reached the mainstream and is an increasingly valuable marketing tool, especially for those who focus on optimizing the mobile experience for end users. BY HEIDI TOLLIVERWALKER O ne of the most ubiquitous trends in marketing is the use and analysis of QR codes. But just how ubiquitous are the codes themselves Wh

QR CODES LESSONS FROM THE DATA Exploding World of Data While the QR code data can sometimes be contradictory, one of the unequivocal trends is volume. No matter which data set you view, the volume of QR code and 2D barcode scans is increasing exponentially. ScanBuy, for example, has been tracking the use of 1D and 2D barcodes through its system and releasing data for the last several years. Between April and June 2011 alone, the number of scans going through its ScanLife platform including both

QR CODES LESSONS FROM THE DATA Mobile Barcode Usage, by Gender Q3 2010 Q3 2011 70 13 43 30 13 57 mobile payments, this intuitively makes sense. The top motivator for scanning QR codes, according to MGH research, is to find coupons, discounts and deals. According to Mobio, yearoveryear growth in mobile payments is up sharply 118 percent. One trend that is somewhat counterintuitive but that keeps showing up in the data is that the fastest growing demographic of QR code users is older consumers

QR CODES LESSONS FROM THE DATA QR Code Popularity, by Users Incomes 25K 25K to 50K 50K to 75K 75K to 100K 100K 19 18 19 8 36 understand who they are targeting with the codes and why. You also need to help them understand what motivates their target audiences to scan these codes and what those audiences will expect to see once they do so. Also key is that, while these codes may be printed on any variety of paperbased or promotional items, they are not print marketing. They are mobile marketing

QR CODES LESSONS FROM THE DATA Quarterly Growth in Mobile Barcode Usage 60 53 52 50 40 33 30 26 24 23 23 20 11 shoot. We are experiencing over a 40 percent unique engagement rate with the QR codes as well as over 60 percent repeat usage for successive months, he said. Our fans have clearly showed us their growth in knowledge and appeal with QR codes over the past three years, as well as confirming that basic marketing principles still apply, even with new technology. We are excited abo

QR CODES LESSONS FROM THE DATA QR Codes or SnapTags With all the excitement concerning QR codes, its no surprise that for the introduction to each of the chapters of his new book, Running the Gauntlet, industry veteran Jeff Hayzlett added complementary video content that could be accessed on readers mobile phones via ... SnapTags In the recently released book, Hayzlett adds SnapTags to the front of each of the 35 chapters. The tags contain links to videos of Hayzlett explaining what each chapte

ology mer base. ting automation techn g collateral for the custo Online orderingmarke the sales and marketin ainst a that manages all , manage purchases ag Webbased system r usage, and, if required also track custome The system should . r. coop spend allowance nthly repor ts by custome capability to produce mo have the The system should

21 Tips for Answering Your Next RFP Responding well to a timeconsuming request for proposal RFP can bring your company profit or pain. As more end users seek singlesource vendors for print and marketing management, distributors can impress them by using these tips. BY DARIN PAINTER large East Coast regional health care system recently invited some print providers, including at least two distributors, to respond to its request for proposal RFP. In specific, the company sought an Internetbased st

21 TIPS FOR ANSWERING YOUR NEXT RFP that likely will never be used, once quipped the late Dick Gorelick, who was president of Gorelick Associates and the Graphic Arts Sales Foundation, as well as a frequent PSDA event speaker. Many print providers have drawn a line in the sand, concluding that completing voluminous RFPs are not productive uses of their time. While RFPs undoubtedly are written by committees inexperienced with custommanufactured product purchasing, an increasing number of end us

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21 TIPS FOR ANSWERING YOUR NEXT RFP dictate that the pricing part of your proposal be submitted in a sealed envelope, or that the response includes separate tabs for each section. The problem is, the week preceding a submission deadline is typically very busy even frantic, said Dave Seibert, principal at The Seibert Group, a sales consulting and writing services agency specializing in sales proposals. In this environment, its not uncommon to become so focused on finishing all of the answers to

21 TIPS FOR ANSWERING YOUR NEXT RFP Sample Questions from Recent PrintRelated RFPs How many of these actual queries from recent RFPs could your team answer 1. What technology is available, and what are the levels of customization that can be achieved for online ordering 2. Describe your variable print offering and any technology associated with making the ordering of these items brandspecific and errorfree. 3. Describe the level of security and quality assurance in place when a mailing is occur

21 TIPS FOR ANSWERING YOUR NEXT RFP Use the material you unearthed in step four as a basic voice guide. 14. Solicit help from trusted manufacturers for pricing. Trust between distributors and manufacturers is important during this stage. Together, determine the best possible price you can offer. Some RFPs ask respondents to quote on specific line items with specifications and quantities other RFPs ask for overall philosophies about price savings. Clearly identify any exclusions or purchaser obl

21 TIPS FOR ANSWERING YOUR NEXT RFP making the purchase decision. The cover letter, in contrast, is between you and the person who has been your main contact. Therefore, it should read like a personal note, complimentary and appreciative, Seibert said. 19. Supplement your proposal with case studies andor samples to distinguish your solution. Unless the RFP specifically says you shouldnt, provide supplementary pieces that give the prospect a tangible way to identify your products and services. O

Five Ideas to Boost Your Direct Mail Effectiveness Its hard to argue against the value of direct mail marketing. To have a truly successful piece, though, you need a contemporary, creative approach. BY ROBIN MARCHETTI D irect mail is a classic marketing channel that has been around a long time. But can you teach an old dog new tricks Can you blend a classic marketing channel into todays mobile lifestyles and new media environment with success Of course And you should. Why Although we think of

FIVE IDEAS TO BOOST YOUR DIRECT MAIL EFFECTIVENESS their mailboxes. Its your first opportunity to catch their attention and state your case. Use it to the max. Try using real or simulated handwriting on the outside of the envelope. Handwritten envelopes often have a higher open rate, particularly in verticals such as nonprofits and religious organizations. Try putting Personal and Confidential on the front of the envelope. Or using a real stamp. For more ideas, see the sidebar for Wises Nine Sm

Inkjet Setting the Stage to Change the Digital Production Equation Again Process shift to inkjet already is under way in the transactional and publishing environments, and with quality increasing and new chemistry arising, it likely will become even more prevalent. BY HEIDI TOLLIVERWALKER 52 PRINT SOLUTIONS JANUARY 2012 PSDA.ORG

ll you have to do is walk the floor of shows like GRAPH EXPO or Labelexpo Americas, and what youll see is not your fathers inkjet. What you see is an explosion of devices that impact or have the ability to impact every aspect of commercial printing and publications. Already weve seen fullcolor inkjet taking chunks out of the transactional and publishing marketplaces. Companies such as Agfa, Oc, Pitney Bowes, Screen, Kodak, HP, EFI Jetrion and many others are vying for this lucrative chunk of b

INKJET SETTING THE STAGE TO CHANGE THE DIGITAL PRODUCTION EQUATION AGAIN Theres real money out there for publishers using inkjet because it reduces inventories, reduces obsolescence and frees up working capital. James F. Conway III, Chairman and Chief Executive Officer, Courier Corporation JV33 and CJV30 series of largeformat printers. Using the ColorLogic Process Metallic Color System, the ink can be used to create metallic effects, such as gold or bronze, as well as other color shades, witho

March 57, 2012 Arizona Grand Resort Phoenix, AZ C HANGE E CONOMY O PPORTUNITY A Meeting of the Minds PSDAs CEO Summit brings together leading distributors, manufacturers and suppliers to listen and learn from one another and from pacesetters within and beyond our industry. If youre ready to tackle challenges and maximize opportunities, make a commitment to attend the 2012 CEO Summit. Topics include Helping your teams achieve higher levels of effectiveness and success through leadership Devel

INKJET SETTING THE STAGE TO CHANGE THE DIGITAL PRODUCTION EQUATION AGAIN Everything is on the table, Greene said. While most of these machines are verticalspecific, its all portable. Fading Debate Although the debate especially in the photoprinting marketplace used to rage about archival print life and color stability, that discussion has faded into the background as the two technologies have converged. There remain generalizations such as outdoor graphics and apps requiring abrasionresista

Even so, some researchers, such as Bohan, see inkjet as having the potential to impact the entire dynamics of the marketplace. From the perspective of productivity, we could see a significant market displacement of toner, he said. It could also open doors for previously noneconomical products such as personalizedregionalized materials, such as newspapers, direct mail and magazines. The quality, while not yet reaching offset or really good toner, is rapidly becoming acceptable for many applicatio

CASE STUDY Hooked on Innovation Creative thinking by PSDA members Relyco and WardKraft leads to an innovative form that helps the New Hampshire Fish and Game Department save money and streamline its licensing process. The winning entry in the Forms category in PSDAs 2011 Print Excellence and Knowledge PEAK Awards truly shows the power of collaboration to provide innovative solutions for clients. I n this case the client the New Hampshire Fish and Game Department had submitted a purchase re

INDUSTRY NEWS COMPILED BY ALEXA SCHLOSSER News Meridian Acquires Courier Printing PSDA member and print service provider Meridian recently acquired the fullservice offset printing company Courier Printing. Meridian plans to integrate the Courier production facility complementing Meridian customers with additional large format offset presses adding speed, capacity and gaining cost reductions for our customer base, said Bruce Vorel, Meridians vice president of operations. We will continue to inv

INDUSTRY NEWS Trelleborg Reveals Significant Cost Savings with Launch of Online Cost Calculator Trelleborg Printing Blankets recently launched an innovative online production downtime cost calculator specifically designed to highlight the importance of considering whole life costs during printing blanket selection shown right. Using the online calculator, print managers can input their current printing requirements and outgoings, including elements such as how many blankets are used per month,

INDUSTRY NEWS Ceresana Analyzes the Booming Bioplastic Industry The market research institute Ceresana Research expects the global bioplastics market to reach revenues of more than US2.8 billion in 2018 corresponding to average annual growth rates of 17.8 percent. High expectations will be placed on the bioplastic industry in the future. Bioplastics are supposed to contribute to protecting the climate, provide a solution for the waste issue, reduce the dependence on fossil raw materials, and i

INDUSTRY NEWS Excelsior Printing Announces Formation of Excelsior Integrated LLC and Acquisition of Assets Excelsior Printing Companys Chairman David Crane and CEO Brendan Burns recently announced the formation of a new company, Excelsior Integrated LLC. Excelsior Integrated has acquired the assets of Berkshire Information Systems, Inc. BIS, a leading provider of fulfillment, inventory management and electronic commerce services since 1978. For several years now, Excelsior Printing has worked w

CLASSIFIEDS BUSINESS FORMS WIDE FORMAT 64 PRINT SOLUTIONS JANUARY 2012 PSDA.ORG

CLASSIFIEDS BUSINESS FORMS ENVELOPES DIRECT MAIL ENVELOPES PSDA.ORG JANUARY 2012 PRINT SOLUTIONS 65

CLASSIFIEDS ENVELOPES PLASTIC PRODUCTS PRESENTATION FOLDERS REWARDSINCENTIVE PROGRAMS 66 PRINT SOLUTIONS JANUARY 2012 PSDA.ORG

CLASSIFIEDS TAGS AND LABELS PSDA.ORG JANUARY 2012 PRINT SOLUTIONS 67

FINAL THOUGHTS Recruiting and Social Media All the Great Candidates Are Online BY LISA RITCHIE And heres another tip When posting a position on Twitter, include job and followed by your location in the tweet this way people searching for jobs can find your posting even if they are not following you. You may also want to include the type of position or industry you are recruiting for, such as sales job yourcity or print job yourcity in your tweet. Dont Forget Facebook T hroughout the past

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