OCA Group is the latest to offer trade services to Australian printers, throwing its expertise in design, software and distribution into the bargain. Chief executive Naresh Gulati says in about two months the company’s subsidiary Print Bound will offer printers services for the entire print process for all jobs except high-end packaging and labels. Gulati says the move aims to save printers from investing in expensive equipment or software before they have the income to pay for it, and that using the resources of another printer while they attract clients is a better plan.
Naresh Gulati, CEO of OCA
The move by OCA comes as part of what is becoming a tidal wave of trade printing investments over the past few months, with players positioning themselves to become the manufacturing arm of smaller printers and new players like Vistaprint entering the market. Gulati says low margins and vicious price wars are forcing too many printers into financial situations they cannot get out of, having bought new kit and not seeing the business to feed it. He says, “The fierce competition has led some printers to resort to low price being their unique selling point, which is nothing but a shortcut to graveyard. “It is only a matter of time when the reality catches up in such cases. They pose all sorts of problems be it cashflow, inability to meet their interest or financing obligations, lack of funds to upgrade technology leading to reduced competitiveness, erosion of brand, and the list goes on.” Gulati says that instead of laying out capital on a machine from a supplier that will not necessarily support a printer’s ongoing success, companies are better off partnering with a trade provider that becomes an extension of their own business. He says that even if they don’t use his services, printers should work with each other to share infrastructure for extra capacity, out-of-state jobs and different technology offerings. Printers who partner up with OCA will, he says, in addition to print, design and distribution services, be able to licence workflow software or have OCA handle it themselves. Gulati says setting up software systems can cost up to $200,000 before staff and other running costs, and he will be able to offer it for a quarter of the price. OCA is based in Melbourne, much of it moving into the old Geon facility next month, and while there are no immediate plans to expand production to other states, Gulati says this will be evaluated according to demand.
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