Best known for printing short run business cards and marketing collaterol to small business through its ubiquitous online marketing Vistaprint is now in the trade printing business with its TradeAdvantage programme.
Specifically it is making its 120 different products available to the trade at discounted rates, in a move which it says will enable print resellers to significantly expand their revenue and profitability by being able to offer an expanded range of products at great prices, in very short runs, down to one in fact.
Paul Heath, vice president and chief marketing officer for Vistaprint in Japan, Australia and New Zealand, says that margin could easily be 50 per cent, 200 per cent or more, depending on the product and how the reseller wishes to set their prices.
Those products, almost all of which are produced at the company’s award winning Melbourne facility, cover not only business cards, flyers and other print, but apparel such as T-shirts, polo shirts, hoodies, and caps, promotional and photo products such as mugs, phone cases, magnets, and stickers, and signage including soft signage and banners.
TradeAdvantage operates through a trade only website with web-to-print. Print and copyshops and graphic designers can use the website to show their customers the products available, and then order through the website. They can upload artwork or make use of the myriad online design templates.
Vistaprint’s rationale for the new business is that while it is super successful in web-to-print the entire online market only represents a small proportion of all print, and it recognises that many people prefer to deal face to face when ordering their print. It also recognises that many print resellers may not wish to invest in web-to-print systems to source multiple printed products quickly and easily, especially in short runs.
Heath says, “This is a great opportunity to sell more products to your existing client base. We can add an expanded product range which if resellers were to source themselves they would need to deal with five or ten other suppliers. We are offering one place, one portal, where you can order all of these items.”
Printers partnering with Vistaprint can set their own prices. For the printer there is zero investment in equipment, no need to buy a new press or mug printer or software, and they have access to significant new markets with the latest production technology behind them.
Vistaprint will provide standard discounts to all products and quantities, with tiered discounts depending on average monthly purchases. The online ordering system makes it easy for a printer to see the prices. All of these prices will be available online, allowing printers to quickly look at them withut waiting for a quote.
Vistaprint sets its pricing to the reseller via a trade-only portal, allowing printers to add whatever margin they determine to reach their own sell price to their customers.
There will also be regular discounts on key products, which the company says will offer the trade an opportunity to further increase their sales and margins. Standard and 3D rendered proofs are available online for approval by the trade partner’s end user customers before confirming their order.
The TradeAdvantage portal will also store designs that have been ordered for each of their partners’ customers, forever, meaning the printer can easily access previous designs for reprints.
Just like its existing well established print business, the whole operation will be online, enabling print shops around the country to order products 24/7, with instant pricing available.
Vistaprint says its specialist setup for handling large volumes of small quantity orders will provide an economical way for printers to service their smaller customers while enjoying attractive margins.
While it currently has some trade print customers on its books, this is its first formal trade-only programme in Australia and New Zealand.
This is not Vistaprint’s first tilt at the trade service game, though the trade-only portal is new. The company has similar supply arrangements in North America, and in March signed a joint venture with Japan’s largest chain of photo print stores, Plaza Create.
Trade
The company is well aware of its customers’ desire to protect their client lists, and says it is taking measures to assure printers that their customers are safe.Orders will be shipped in white label packaging, either to the printer or directly to the customer, with no sign of the relationship with Vistaprint.
Heath says, “We are not known for supplying the trade in Australia but we have global systems that enable us to do this around the world – we have a great heritage internationally of supplying resellers.
“We know the trade will be concerned about Vistaprint marketing directly to their customers, but we want to assure them that is not what we are about. We have been shipping product in white label packaging in Australia for the last 18 months without a hiccup.
He says the proportion of the market that buys print online is relatively small, and by far the majority of businesses prefer to source from print and copy shops and graphic designers. He says, “Our research shows that customers who choose to buy from print and copy shops value that personal interaction. These customers are coming to their local printer for design, convenience, advice and face-to-face service.
“Anybody who wants to buy print from the internet probably already sees Vistaprint, as we are ubiquitous online. However, the end user customers buying from a print and copy shop are making a conscious decision not to buy online, due to their specific needs. So we are looking to leverage the personal relationships that trade printers have with their customers, by providing them with a great product at a great price.
“This programme brings all the advantages of a pure-play online business with a fantastic manufacturing engine to print and copy partners who have storefronts and strong customer relationships.”
Heath says he does not expect to provide all of a trade partner’s business, only the jobs that fall into Vistaprint’s competitive range. Shipping speeds are three, five and 10 business days.
The company has brought sales manager John Locatelli on board to manage the trade programme, with a dedicated team. Locatelli will work closely with TradeAdvantage partners to show them how to capitalise on the new opportunities.
He says, “If our trade partners are looking to move into promotional products, apparel or signage, we want to provide them with tools to enter that space, feel comfortable, professional and able to deliver on a promise. We will show our trade partners the opportunities and gear them up to go forward.
“Some of our customers are talking about setting up mannequins in their stores to show off the caps, t-shirts and hoodies. We would like to see our partners use retail strategies like this to generate interest in the range of items on offer.”
The entire range will be produced at Vistaprint’s award-winning Deer Park plant. The lean operation spans 10,000sqm and has been built for efficiency, to supply all Australian customers with Aussie-made products.
In the last 12 months, the company has added an envelope line to the factory, capable of producing custom envelopes and envelopes with full bleed printing. In February it introduced spot gloss and raised print business cards.
Locatelli says, “Our catch cry for the TradeAdvantage programme is global expertise and local advantage. Our product range is constantly expanding with the R&D expertise of our engineers in Switzerland. The apparel and promotional products in particular are growing rapidly, and in this financial year we have some exciting plans to extend our range.
“We probably have a more rapid product expansion than our competitors, which is another great reason to come onboard with Vistaprint.”
Trade customers will also have access to all of Vistaprint’s templates, with more than 10,000 designs and counting.
Partnering
Printers who want to partner with Vistaprint through TradeAdvantage can sign up online at the dedicated portal www.vistaprint.net/tradeadvantage, then Vistaprint will follow up with a phone call. Heath says, “It is a pretty quick process, and we are looking forward to welcoming our new trade partners to the programme.
“This is something we are excited about and we believe will provide substantial advantage to the trade, with an attractive ordering system and great range of products at attractive prices.”
Manufacturing excellence
Vistaprint’s Deer Park printing plant has won a bronze Shingo Award for operational excellence, becoming the first printing facility to ever win the international honour.
The award, from the Shingo Institute at Utah State University in the United States, recognises organisations for “delivering world class results and demonstrating an ongoing commitment to leading and influencing a strong culture of operational excellence.”
Having opened in 2010, the Deer Park plant in suburban Melbourne is also the first facility in Australia, and one of the newest plants ever to win the award, which runs across all manufacturing operations in all industries, it is not limited to print manufacturing, but all types of factories.
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