Category: News

We discuss the future of trade printing and how Australian print resellers can stay ahead of the curve

The world of trade printing is constantly evolving, and it is important for print resellers and brokers to stay informed about the latest trends and developments in the industry. So here’s what we’ve uncovered through our recent research trip to European hubs.

The Future of Trade Printing Is About Volume

One of the key trends in the future of trade printing is the increasing demand for volume and capacity. As businesses and consumers continue to rely more heavily on print materials, print resellers and brokers will need to find ways to produce more materials in less time. This will require investment in new equipment and technology that can handle larger volumes and faster turnaround times.

Thankfully, Mediapoint has continually sought new equipment, optimised production processes and strong supplier relationships. We’ve also designed out trade printing facility with expansion in mind. This allows us to meet the growing demands of trade print clients well into the future.

Optimising each element of our value stream means we have the capacity to do more for our clients with less waste. Less waste means more savings in time, money and resources. This creates a closed loop that leads to purchasing better equipment, optimising production and increasing output.

Print brokers should be evaluating a trade printer based on their capacity, equipment and capabilities. Doing so now enables resellers to capitalise on emerging trends and demands of retail customers.

Older Equipment Won’t Service High Volume Resellers

This increasing demand for volume and capacity means traditional print shops will need to find ways to produce more materials in less time. In order to meet this demand, they’ll need to identify trade printers who have the knowhow and equipment. This ability to meet expectations also requires innovative technology such as automation tools (like our PrintIQ portal), Lean processes and effective operations teams. Each of these elements helps to streamline production and improve efficiency. This leads to better outcomes for both reseller and customer alike.

Trade printers who do not invest in key areas will struggle and may not be able to offer the level of quality and service that clients are expecting. Additionally, as the market evolves, these laggards will be unable to access the technologies and techniques that emerge falling further behind.

Bespoke and Custom Printing Solutions Will Move In-House

Despite the future of trade printing moving prioritising volume there will still be a need for bespoke and custom print solutions. Some trade printers may choose to focus on filling production gaps in these areas. However, these jobs will be more likely to be produced in-house due to the decreasing costs of necessary equipment.

At Mediapoint we are very focused on how and who we support when it comes to trade printing. We have a specific definition of a trade client and don’t intend on changing. What we do intend on, however, is continually evolving to meet their needs and helping them grow.

If you’re a high volume print reseller or a print shop looking to grow your capacity, set up a PrintIQ account or contact us to discuss your needs.

We delve into our definition of a trade print client and how it ensures a transparent relationship that benefits everyone.

At Mediapoint we define a trade client as any entity reselling print; not the end consumer. So when we say, “we are a trade only printer” that means we don’t deal with retail customers. This has a few benefits for our customers but it’s important to know what such a trade printing relationship means.

Our Definition of a Trade Print Client Sets Accountabilities

We have found that there are fewer crossed wires, faster turnaround and better results when dealing directly with print resellers. One line of communication makes each party accountable for certain tasks. For Mediapoint that’s print, cut, finishing and packaging. For our trade clients that means they handle preparation of artwork and communicating with the retail customer.

We find that this task split is appealing to trade printing clients. It provides peace-of-mind that their customer won’t be poached. This is all too common when there is no separation between the end customer and the trade printer. Either organically or by intent resellers can be cut out of deals as customers seek to lower prices or reduce administration.

Our Definition of a Trade Print Client Enables Us to Support More Businesses

As a print reselling partner with a focus solely on trade clients we are able to support more than just traditional print shops. Our definition of a trade print client extends beyond print resellers or print brokers. Marketing/design agencies, individual consultants are also in need of a high volume printing partner. Our ability to blind ship orders and deal direct is particularly appealing to these organisations.

Considerations for Working with Trade Printers

A trade printer’s number one priority should be to give its resellers the most margin. That’s how we operate at Mediapoint. We’ve heavily invested in our manufacturing and our process. That means all other areas of the business including the frontend, prepress, and dispatch need to be fairly automated.

So if you require personal service on every order, a trade printer like us may not be optimal. You will be directed to an automated system for the aforementioned benefits of speed, efficiency and cost.

However, you’ll have access to the best printing prices and reclaim time back to grow your business. Not to mention peace of mind. These are the tradeoffs to consider when comparing trade printing VS In-House Production.

A quality trade printer (also known as a Wholesale Printer) will deal only with you – not your customer – allowing you to focus on growing relationships and your customer base. After all, trade printing is a service where you outsource to a supplier who producing work on your behalf. You are then left with greater equipment availability for priority, short-run jobs and/or more time to focus on growing your business.

If you think you fit into our definition of trade and are looking to outsource your printing, sign up for a PrintIQ account today.

In this article we break down wide format printing costs to give you a peak behind the scenes. You’ll be able to better understand exactly where gains can be made. Plus, you’ll have a better idea of the difference between trade printing and in-house production.

Wide Format Printing Equipment Cost & Capacity

First and foremost is the actual cost of the large format equipment to be used. The capital expenditure of these assets is factored into the cost of each sheet. When calculating this, organisations need to also consider the capacity of the selected printer. At Mediapoint, we have invested in large format printers that can handle more volume, to bring down the cost per sheet and produce more jobs per hour. In tandem with our streamlined batching processes we can feed more volume through the line in less operational time. That means we can pass on greater savings to our trade clients and give them greater margin for reselling.

For the clients we cater to best (high volume resellers) this is the optimal process, however there will inevitably be some tradeoffs. We’ve covered those in another article that outlines how to evaluate a trade printer and make sure they match your needs.

Ink Plays a Key Part in Large Format Printing

Fundamentally you need ink to print – there is no way around this commodity. An ink cost per square meter is factored into the cost of any printing run. When dealing with large format prints this can be a significant cost – particularly if the equipment being used is not efficient in its ink usage. You’ll find that entry level or cheaper equipment will be less effective in its use of inks. So you may still end up with a quality print, but the ink costs per square meter are much higher.

We run premium Durst printers on a single printing mode. These are optimised for a set quality of print in all batches. This allows us to sustain efficient ink usage even at the high volume our clients expect, whilst sustaining the level of print quality their own customers expect.

Floor Space Required for Wide Format Printers

Large printers need a lot of floor space. From handling stock, to a working and dispatch area; each piece of equipment needs a significant amount of real estate. At Mediapoint we have over 2000sqm of internal warehouse space. This enables our teams work safely and efficiently when handling print jobs. Plus, it future-proofs our expansion plans.

This is an oft-overlooked aspect of wide format printing, and a major reason why scaling production / capacity is hard for your average print shop. Once the capacity of existing equipment is reached, not only do you need to outlay capital for equipment but also rental of extra floor space or sometimes even an entirely new premises. That expenditure usually leads to increase in print pricing which can affect relationships with customers and significantly impact your bottom line.

Finishing

Another overlooked aspect of wide format printing is the added finishing equipment and processes required. Finishing has a linked impact on quality and delivery of print runs. Sometimes, the cost of good finishing equipment can cost more than the actual print equipment. Then we must consider the cost of staff, training, and the time needed to finish orders. Once again, this all contributes to the final pricing of print jobs. Any process optimisations or capital savings mean less costs overall and greater margins to play with. In printing, economies of scale are very real – which is why trying to justify completing high-volume, repetitive work in-house can be difficult.

Quality Assurance and Dispatch

Unlike other forms of print, like the name suggests, large format printing is large. Due to the materials and equipment involved the print process differs from smaller-scale operation. That means it is necessary to conduct QA work prior to dispatch. It also requires customised packaging and delivery option which ties up a lot of resources as well.

As you can see, there are many factors at play when it comes to the pricing of commercial printing. Due to this the quoting process can often take quite a while, delaying projects or blowing out lead times. That’s why we’ve invested in our PrintIQ system – offering 24/7 live pricing and automated print processing.

If you’re a print resellers looking to provide accurate quotes, manage customer expectations, and get on with the business of selling, create an account today.

In the video above (and the accompanying article) we discuss how you can increase profits by engaging a trade printer.

Increase Profits by Offering More Products to Your Existing Customers

It’s highly likely the bulk of your revenue comes from existing customers, who already buying from you. You’ve built up a relationship with them and you’re likely to be their go-to supplier. But there’s a finite amount of products and stock you can hold / offer without taking up costly space. Not to mention the compatibility of these materials with your existing equipment.

That’s where an established, large trade printer comes in handy. By engaging a print partner you can offer their range of products and services as your own to existing customers without having to outlay significant cost for new stock, products or specialised printing equipment. You win by growing your product offerings (whilst minimising spend) and they win by not having to go elsewhere.

It’s a no-risk way to add services and products without the need for more floor space, staff, equipment or administration. Under this model you can just focus on the selling; strengthening relationships with clients as you also add profit, thanks to good margins and increased offerings.

Downsizing By Removing Unprofitable Lines

Eliminate the risk and the burden of unprofitable lines by shifting the responsibility to a trade printer. It’s no secret that staff are getting harder to find in Australia, so when we they are available we need them to be utilised effectively. Plus accessing the latest technology or purchasing new equipment is taking longer than ever thanks to supply chain issues. So keeping up with the right equipment or the right setup to match our competitors, and the demands of a growing customer base, is much harder.

To overcome these challenges (particularly during the peak of COVID) we’ve seen printing companies downsizing, moving to leaner models and focusing only on profitable lines. Some have even made the decision to shift entirely from print manufacturing to print reselling or brokering.

Trade printers make this a viable long-term strategy, allowing print business owners to stress less and move to more profitable models over the last couple years.

Increase Profits by Outsourcing Large Volume Orders

If you’re manufacturing predominantly in-house it’s likely that you have entry-level equipment or assets that suit a lower volume of production. This is fine for artisanal, bespoke or custom jobs, but not beneficial if you’re expecting to grow the volume of your print runs. In this scenario the cost per square metre will be much higher when factoring in ink, stock, labour, capital for equipment and the physical space you need for it all.

Of course, you can charge more (out of necessity / perceived value) but should your quantity of orders or volume grow, you’ll be tying up production capacity on low margin orders. Never forget that time is a commodity; any time your machines are running for one job, they aren’t producing for another. You want to be utilising your own equipment for the orders that make the most profit; outsourcing to a reliable partner enables you to do this without sacrificing quality or speed on key accounts.

Using a trade printer you can produce faster, at a higher volume, without the profit-eating capital outlay.

Which Trade Printers Will Increase Profits

Each trade / wholesale printer will have different offerings when it comes to products, service and pricing.

It’s important to undertake a robust evaluation of your options – whether you’re already in a trade printing partnership or just starting to look into the option. It doesn’t take much to get the answers you need, just a decent investment of focus and time. However, the return on this investment can reap great rewards when it comes to increasing profits. We recently discussed the fundamental questions you should answer in your evaluation when looking to outsource your printing.

Match up with a quality wholesale printer and you’ll be freeing up equipment capacity, labour, time and capital whilst building up the bottom line.

If you’re interested in evaluating Mediapoint services, and joining hundreds of other high volume resellers taking advantage of trade print, sign up to our PrintIQ system today.