The Future of Your Neighborhood Print Shop

As you can imagine, revenues are down and continue to decline in the quick print environment. This decline started in 2008 and continued through 2009. Everyone is hopeful that 2010 will be a growth year, but hardly anyone expects revenues to return to the 2007 levels anytime soon. Print industry experts are predicting a continuing overall decline in the traditional revenue streams that have been the stalwart of the quick printing industry for years, namely: offset printing, high-speed duplicating, digital printing, bindery and graphic design. Products such as letterhead, envelopes, business cards, fliers, newsletters, brochures, manuals, postcards, forms and direct mail have all seen declines due to the conversion to Internet marketing, the rise of Internet printing companies, or from companies purchasing equipment at the user level sufficient to produce these items in-house. Because of the overall decline of traditional printed items, there also is significant price pressure on those print shops that have survived this economic decline.

So, what is the future of your neighborhood print shop? Dr. Joseph Webb, a contributor to one of the industry's think tanks, What They Think, has written a book entitled "Renewing the Printing Industry". In addition, Barb Pellow, a contributor to InfoTrends, has also written many articles about the condition of print overall. Both of these individuals have analyzed the printing industry and have concluded that changes need to be made in order for all printing entities to survive.

There are several avenues that a quick print owner can consider. I will discuss two of them. The first is to fight the trend by being the best marketer of their service, to become more efficient than their competitors so they can compete on price, to implement on-line ordering to the general public, to acquire the business of closing print shops, and to, in fact, significantly reduce their pricing. I refer to this business plan as the commodity approach. Be the best in the traditional printing environment. There is still money to be made in the traditional printing environment for those who continue down this path. The biggest downside is that this market will continue to decline. The last maker of buggy whips was the most efficient of the bunch.

The second avenue of approach, and the one that most quick print franchisors are pushing is the conversion to becoming marketing and communications experts while milking the traditional printing area as much as possible. This approach also has significant risk for many reasons. At this point, there are few profit models to duplicate, there is little, to no recognition from outside the industry that a former quick printer can provide this expertise, there is a diverse expertise of franchise owners that does not include marketing training, and people that are already providing this service to businesses are also struggling to survive.

A couple of years ago, many in the quick printing industry developed personalized communications expertise. This allowed them to sell a 1-to-1 marketing piece for their customers, many of which were connected to personalized url's (purl's). This technique, combined with a targeted, well defined list allowed response rates to balloon from 1-3% to as much as 35%. What many in the industry found out is that the lead time to sell these projects were significantly extended over the time it took to sell traditional printed items and that not all customers could make the cost/benefit leap of faith. However, the ability to sell and produce these types of items led people to believe that they were now marketing and communications experts.

I personally believe that the second approach is the way to go for our industry. It will be a difficult road to travel and will probably see a lot of failed attempts along the way. Owners of these operations will need to commit to learning the marketing and communication business, will need to circulate within the marketing, advertising and public relations communities and will need to promote themselves as marketing experts within the business environment. It will be a long and slow path to profitability so the quick printer will need to rely on its traditional printing revenue to survive before the marketing area takes off.

So what is the future of your neighborhood print shop? It will depend on the path they take. If you are a customer, you should have a conversation with them to find out what road they are taking. A commodity printer or a marketing and communication expert. The downhill road or the uphill road.

You can reach us at AlphaGraphics at the following websites:
AlphaGraphics Mesa on Baseline 480-844-2222
AlphaGraphics Tempe on Elliot 480-413-1900
AlphaGraphics Phoenix - Northwest Valley 602-234-2944

Follow me on Twitter at: Steve's Twitter Account

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Is Direct Mail Dead?

We, at AlphaGraphics Say Definitely Not!

One of my salespeople had a conversation with one of her customers last month where she asked the customer whether they had thought about doing a direct mail campaign. The answer she got back was laughter. Why would anyone consider a direct mail campaign when you have email newsletters, a drop-dead website, a business FaceBook page, an active Twitter account and an ongoing blog? Why pay anyone to design a mailer, have it printed and pay postage to distribute it?

Here is a short print industry video to kind of illustrate the point:

http://www.youtube.com/watch?v=FZ3Je3zpMqg

I am not here to bad mouth Social Meda and the Internet. I, myself, have adopted all of the practices I described above and I believe that each of these items are a critical part of any company’s marketing arsenal. However, I believe that direct mail is still a vital component of a comprehensive marketing plan.

First of all, here are some of the discussion points that most people use to justify an email only approach:

-According to the Direct Marketing Association, a properly constructed email campaign returns about $45 per dollar of expense compared to $15 for direct mail.

-Admittedly, an email newsletter is cheap to distribute. No printing costs, no postage.

-There is a perception that the printed piece is hard on the environment, wasting valuable forests and energy costs to produce and distribute.

-A properly run email campaign will allow the issuer to obtain valuable analytics. You will know how many people opened the email, and how many people clicked on the enclosed links.

So what are the benefits of Direct Mail?

-Direct mail has almost a 100% deliverability factor. If a customer or prospect has changed their address, the Post Office will give you the new information. Most emails sent will have between a 33% to 67% undeliverable factor depending on spam filters and blocking. If someone leaves a company or changes their email address, there is no notification received with the correct information. EMailLabs did a survey in 2006 with company executives which asked the question: How significant a challenge is deliverability for your company’s email marketing programs? 30.5% responded that it was a significant challenge and 51.8% responded that it was somewhat of a challenge.

-Direct mail can support and enhance a great email program. Royal Mail, Britain’s Post Office, did a study and determined that an email marketing program supported by a direct mail program increased the effectiveness of the email program by 65%. Quite an improvement.

-Direct mail can stimulate web traffic. In today’s SEO world, the name of the game is to attract prospects and customers to your company website and/or to your blog. Sometimes the only way to get people to these online locations is through the printed piece.

-Direct mail can keep the company’s database current, including active email addresses. Mailers, with attached personalized url’s drive people to a landing page that has the customer update their data. I should note that the recipient will need a good reason to go to the website such as a gift certificate or a downloadable white paper.

-Believe it or not, there is still a big portion of the market that is not Internet savvy. There also needs to be a way to contact customers and prospects that opt-out of your email messages. Understanding the demographic targets of a company’s customers and prospects will allow the right choice on media to use.

-Most of the paper used in a printing operation comes from FSC certified forests. These are forests whereby the trees used in the manufacture of paper have been grown specifically for that purpose. Most of these papers also have a high mix of recycled content thus reducing the energy used in its manufacture.

John Jantsch, author of the book “Duct Tape Marketing: The World’s Most Practical Small Business Marketing Guide” had this to say about Direct Mail:

“…one of my favorite forms of advertising for the small business—direct mail. The reasons I like direct mail are pretty simple, but it all leads back to my prevailing principles when it comes to analyzing any form of advertising.

1. Does it allow you to specifically target your Ideal Prospect?
2. Does it provide a high return on investment?

Properly executed, direct mail offers a resounding yes to both of the above questions.”

He also wrote, “Few advertising mediums are targeted enough to offer the small business a high enough return on investment, but the primary reason I believe direct mail is the best choice for most small businesses is that you can start very small, test very quickly, and easily expand your efforts when you have a winner.”

He then goes on to discuss the ability to personalize direct mail and the need to have a great list, which is the subject of a later posting.

I leave you with some final statistics supporting Direct Mail. In 2009, marketers are estimated to have spent about $149 billion on direct marketing, which accounts for 54.3% of all ad expenditures in the country, according to the Direct Marketing Association. Measured against total U.S. sales, these advertising expenditures will generate approximately $1.78 trillion in incremental sales.

You can reach us at AlphaGraphics at the following websites:

Mesa 535 W. Baseline Rd., Mesa, AZ 85210 480-844-2222

Tempe 720 W. Elliot Rd., Tempe, AZ 85284 480-413-1900

Phoenix 8041 N. Black Canyon Hwy, Phoenix, AZ 85021 602-234-2944

Follow me on Twitter at: Steve's Twitter Account

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Hey AlphaGraphics, Put Your Money Where Your Mouth Is

So now that I have published the Top 10 Ways to Market Your Business in 2010, the question being asked is, "Steve, how are your going to market your three businesses in 2010?" Well, after much thought and discussion, here are a few of the things we are going to do.

1. Website and SEO-AlphaGraphics, Inc., our franchisor, controls much of the formatting of our local websites. They use a Utah firm with the appropriate name of SEO.com. At the local level, we can tweek the home page and certain pages in the "About Us" section. We will continue to adjust and evaluate our content and keywords to get our centers a higher ranking with the search engines. We are evaluating whether we want to hire a local firm by the name of VirtualIT to help us with the local page rankings. In addition, the Phoenix Owners Group, which represents the 15 AlphaGraphics franchisees in the Phoenix metropolitan area has contracted with AZPixels to help with our SEM (search engine marketing) placements. This year, we will also ask our customers to rate our performance on our Google, CitySearch and Yahoo pages. To entice them to do this, we will give our customers a $5 Starbucks card. The search engines evaluate the number of reviews when deciding which businesses get shown on the map on the first page. It is also our goal to significantly increase the amount of links to our websites from outside sources by asking our customers, our vendors and our business contacts to consider a like-for-like linking.

2. Blog-Well, your reading it. I intend to continue with a weekly posting until I get a little more comfortable with a more frequent publishing schedule. I have referenced this blog in my websites, my twitter page, my LinkedIn page, my personal Facebook page and on each of my centers' Facebook pages.

3. Demographic Profile-We plan on completing a demographic profile of our best customers at each of my centers this year. With that information, we will identify about 500 companies that are similar to our best customers and we will market to these companies with all our resources as discussed in the points below.

4. Direct Mail-As part of our AlphaGraphics program, each of my centers will do a monthly mailing to a combination of customers, prospects and leads. We grew our businesses on direct mail and we continue to see benefit for continuing the practice. In fact John Jantsch, in his book "Duct Tape Marketing" stated that direct mail is still one of the most cost effective ways to reach your prospects. In our direct mailing campaign, we will use personalized url's (purls) to obtain additional information from these prospects. As a Phoenix Owners Group, we plan on distributing a series of 3-dimensional mailings matched with a purl site and some type of give away such as a gift card.

5. Email Newsletters- We have started a monthly email newsletters to our customers and prospects. We are currently using Constant Contact to help us with this process. Each of these newsletters will be based upon a marketing and/or a printing theme and will be associated with one of my blogs. Our email newsletters will be information and hopefully will not come across as purely promotional.

6. Social Media-We are now very active in the Twitter, Facebook, Plaxo and LinkedIn arenas. The trick now is to get all of these areas linked in with each other so that we only have to do one posting at at time.

7. News Releases- We plan on issuing one news release per center per month. We use, through AlphaGraphics, Inc., a company by the name of GrassrootsPR to help us with these news releases to the local media. Our news releases will be on items such as new equipment additions, promotions of key people, awards won or nominated, information that will benefit the business community or a host of other things. From an SEO standpoint, we will us PRWeb.com to distribute these news releases on the web so that they are searchable by the search engines. These releases by PRWeb cost us $80 per release.

8. Community Activities-We plan on continuing to be active in our local chambers of commerce, the Mesa Rotary Club, the Mesa United Way and BNI. We believe that it is important to be active in the community to help others and ourselves.

You can reach us at AlphaGraphics at the following websites:

Mesa 535 W. Baseline Rd., Mesa, AZ 85210 480-844-2222
Tempe 720 W. Elliot Rd., Tempe, AZ 85284 480-413-1900
Phoenix 8041 N. Black Canyon Hwy, Phoenix, AZ 85021 602-234-2944

Follow me on Twitter at: Steve's Twitter Account

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Top 10 Ways to Market Your Business in 2010

As we go into 2010, full of promise and change from 2009, it is time to think about economical ways to market your business in the coming year. In this internet, social media age, the old marketing plans can no longer be copied into the the new plans. Here are our top ten things AlphaGraphics suggests that you do:

1. Update your Website- Your website is no longer a brochure for the company. The internet search engines such as Google, Bing and Yahoo have changed the rules. Your website needs to be searchable, it needs to have outside links refer to its content and it needs to be changed very frequently. If you have not had a major overhaul of your site in the last 5 years, its time to invest in a total makeover. Even if you do not make any major changes, the site needs to be editable by the Marketing Department or the owner. There needs to be a system of updating and changing the site on a weekly or monthly basis and having an easy to use edit tool accessible to the marketing people is a must. As discussed in the next item, the use of keywords is also essential for the search engine.

2. Invest in Search Engine Optimization- SEO is the word of the new decade in the marketing arena. For as little as $200 per month, you can hire a company to make your website land on the first page of any search. They do this by testing your website to make sure it has been optimized, by making sure the keywords are in the right place, by making sure that there is activity outside the website that points to your website such as blogs, news releases, email blast, etc. and they use tools to monitor your website activity. You may be able to do it yourself. There are many books written and being written on the subject.

3. Think About Search Engine Marketing- SEM is the sibling to SEO. When you do a search on Google, there are two distinct parts of the results page. There usually is a couple of listings at the top of the page and there are several listings to the right of the page. These are the sponsored links. If you click on one of the links, the sponsor will pay a click-thru fee, usually averaging about $3 per click. The other part of the page is the organic listings where SEO activities dictate the rankings. SEM is done by bidding on the keywords you want to sponsor with the search engines. With Google, you can bid on certain words using their AdWords feature. It is usually a good idea to hire a consultant to place the words for you and to monitor the results. You might also want to design different landing pages within your website for each category of keywords so that when the customer does click-thru to your site, where they land is relevant to the search term.

4. Send out Email Newsletters- This is an email world now. Monthly email newsletters are a great way to inform your customers and prospects about your business. You do have to be careful not to come across a selling a product or service too much or people will opt-out of future mailings. Emails that are informative and specific to what your customers want to know are the best types of emails. Occasional promotional postcard email blasts are OK, but do it too often, your will lose the ability to send future emails. Companies such as Constant Contact are perfect for distributing these emails. They have templates available and they monitor the email addresses for bounces and opt-outs.

5. Do a Demographic Profile of Your Customers- How would you like a listing of the companies or prospects that are out there that are exactly like your current customers. Well, it is possible to get this listing by doing a demographics profile of your existing customers. Once this information is put into the system, we can identify a listing of companies and prospects that have the same attributes as your existing customers in your market. This process usually runs around $1,000 to have done, but it will allow you to better target your market with a reduced number of mailed or emailed items.

6. Don't Forget Direct Mail- Direct mail is still one of the best ways of contacting prospective or current customers. Email filters and the rapid changes in email addresses reduces the overall benefits of doing email only. Using an efficient mailing list such as the one discussed above, greatly enhances your chances that the direct mail item will be read. We also use three-dimensional pieces and personalized url to improve responses rates on our mailings. Personalized url's (purls) are a great way to get your prospects or customers to go to a website to capture additional demographic information on that customer.

7. Write a Blog- Every company needs to have a blog. The best way to drive people to your company's website is to have them read your blog. As in the email blast discussions above, blogs should be informative and not promotional in order to capture and maintain a frequent audience. Starting a blog is easy. I started this one by going to Google and typing in "starting a blog". Don't worry that it appears that no one is reading the blog. Your readership will expand over time and it will be very beneficial with the search engines. Link your company website, your Twitter page and everything else within your blog. Just remember, link, link, link.

8. Be Active with Social Media- Most people understand Facebook and LinkedIn now. A lot of people do not understand Twitter and its benefits. "I'm sitting on a corner in Winslow, Arizona" does not appear to make a great business tool. However, using Twitter to make an occasional statement about something of interest in your business or industry will get you some followers. On Facebook, having a separate company page whereby people can become fans of your business has its benefits. Cross linking your website, your Blog, your Facebook page and your Twitter page will enhance your readership and your search results.

9. Issue News Releases- Commit to issuing a monthly press release about something of interest that has happened to your business. This can be about a new product, a new piece of equipment, a move or something that one of your employees did. Before your do the first one, you need to develop a contact listing of your local media outlets. Once the news release is written then it needs to be distributed to the local media outlets as well as placing the news release on the wire. Putting the news release on the wire allows the release to be searched by the search engines and catalogued.

10. Go to Trade Shows- Re-commit to going to trade shows. At least plan on getting a booth at the local Chamber of Commerce Business Expo. Trade shows are an inexpensive way to get in front of prospective customers. The use of large format graphics and brochures helps to make your booth pop. Capture business cards of prospects by offering something of value such as a prize or free service.

At AlphaGraphics, we are positioned to either providing the above listed services or to helping you to contact a company that provides the service. We would be happy to meet with your to plan out your full year marketing plan.

You can reach us at AlphaGraphics at the following websites:

Mesa 535 W. Baseline Rd., Mesa, AZ 85210 480-844-2222
Tempe 720 W. Elliot Rd., Tempe, AZ 85284 480-413-1900
Phoenix 8041 N. Black Canyon Hwy, Phoenix, AZ 85021 602-234-2944

Follow me on Twitter at: Steve's Twitter Account

Just the Beginning

Well I've heard so much about Blogging that I decided that I just had to give it try. I am the owner of three AlphaGraphics Digital and Print Centers in the Phoenix metropolitan area including Mesa (1990), Tempe (1997) and Phoenix (2006). We have been ranked in the Top 10 franchise operations in AlphaGraphics over the last 4 years and are consistently ranked in the top 100 quick printing operations in the U.S, ranking as high as 60th.

AlphaGraphics is a full service, visual communications business. We also consider ourselves as marketing and communications consultants reaching into the realm of front-end creative, search engine optimization, paid search, e-mail blasts, one-to-one direct mail, personalized url mailings and a whole host of other things.

You can reach my centers at the following websites:
Mesa http://us291.alphagraphics.com/
Tempe http://us436.alphagraphics.com/
Phoenix http://us106.alphagraphics.com/