As the printing industry continues to evolve and face new challenges, it can be a struggle to stay ahead of the game. One way to future-proof your printing business is through service diversification. By branching out and offering a wider range of services, you can attract new customers, retain existing ones, and increase revenue. But how do you go about diversifying your services? Where do you start, and what are the risks and benefits?
How Diversification Can Future-Proof Your Printing Business
Below I share five reasons why diversification is so important, and tips on how you can take your printing business to the next level and stay ahead of the game.
1 - Increased Revenue Streams: The Power of Multiplicity
Imagine you're a farmer with a field full of apple trees. What happens if there's a sudden disease that affects apple trees? Your entire income source is at risk, right? Now, imagine if you had a field with apple trees, orange trees, and cherry trees. If one crop fails, you still have others to fall back on. This is the essence of diversification in any business, including print.
By diversifying your print products and services, you're essentially planting different types of 'trees' in your business 'field'. You're not just a commercial printer/copy shop/broker anymore; you can also be a direct mail expert, a catalog printer, a fulfillment and warehousing resource, a color expert, and a print finishing resource, to name a few. You can tailor your expertise to fit your clients needs.
Each service opens up a different revenue stream that can bring in income independently. If one service faces a downturn, others can compensate. It's like having multiple safety nets ensuring your business stays afloat.
2 - Risk Mitigation: What's the Worst Number in Business?
Unless you’re #1 in your field, the number “1” is THE number to avoid in business.
- One primary product or service.
- One employee who is the only one who knows a key piece of software or hardware.
- One salesperson with all the major accounts.
- One piece of vital equipment.
- One customer who accounts for a giant percentage of sales.
- You lose any one of them and your business is at risk.
Diversification is an efficient way to add a backup to any critical market situation. By offering a variety of services, you spread the risk.
If you only have several service offerings and one doesn't perform well, the others will soften the blow and perhaps pick up some of the slack. It's a safety mechanism that protects your business from unexpected and inevitable market changes.
If you have an outside vendor like WTP who can provide backup to internal weak spots such as that lone press operator or lone piece of equipment. It’s a no-cost way to insure redundancy.
3 - Competitive Advantage: Stand Out From the Crowd
By offering a variety of print-related services, you're not just another printing business; you're a one-stop solution for all the critical printing needs tailored to your particular market niche. This unique selling proposition sets you apart from your competitors. For small shops and broker businesses especially, it's like having a secret weapon that gives you an edge yet costs you next to nothing.
4 - Customer Retention and Satisfaction: The More, The Merrier
Of course, it’s not wise to try to be all things to all clients. Yet if your clients are asking for services that you don’t currently provide, it’s good strategy to consider adding them.
Think about how you feel when you go to a store and the shelves are sparse or empty, and products you expected to buy are nowhere to be found. It doesn’t instill confidence. It’s inconvenient if you have to go elsewhere. Dissatisfied, you’ll think twice about ever coming back.
That’s how your customers can feel if there is a lack of products and services.
When your “shelves are full” with a wider range of services that suits your clients’ needs, they feel confident, satisfied, and ready to return again.
By diversifying your services, you're not just attracting new customers but also retaining existing ones for more repeat business. It's a way to build a loyal fan base that keeps coming back for more.
5 - Innovation and Adaptability: Stay Ahead of the Game
Ever noticed how water flows around obstacles in its path? It doesn't stop; it adapts and continues its journey. That's how businesses need to be in today's dynamic market environment, especially in the printing industry.
Service diversification encourages innovation and adaptability. It pushes you to stay current with technology and trends. It makes it possible to offer services that meet the changing needs of your customers.
And the rate of change today can feel overwhelming. Yet like the surfer riding a monster wave, rather than being swept away, those who adapt will benefit as they enjoy the ride.
Takeaways on Success via Print Business Diversification
Service diversification is not just a strategy; it's a pathway to success in the printing industry. It offers multiple benefits, from increased revenue streams and risk mitigation to competitive advantage and customer satisfaction. It encourages innovation and adaptability, keeping your business ahead of the game.
So, why not consider diversifying your services? Why not explore new print marketing and print packaging opportunities and expand your horizons? Standing still today is moving backward.
Ultimately, it's all about providing more value to your customers. The more value you provide, the more successful and valuable your business will be.
So, ask yourself, "What additional services can I provide that my customers will value?" The answer to that question could be the key to your future success.
So let’s talk about how you can diversify your services, starting today. Call me direct at (559) 251-8595 ext. 411 and we'll work with you to get the best print quote possible.
FAQs – Product and Service Diversification for Your Printing Business
What is service diversification in the printing industry?
Service diversification in the printing industry refers to the strategy of offering a wider range of services than you might currently offer. This could include various direct mail services, fulfillment and warehousing, catalogs, publications, die-cut products, graphic design services, and more. The purpose is to offer more of the services that your clients are looking for.
How can service diversification increase revenue streams in my printing business?
Service diversification can increase revenue streams by creating multiple independent sources of income. If one service faces a downturn, others can compensate, ensuring your business stays profitable.
How does service diversification mitigate risk in the printing industry?
Service diversification mitigates risk by spreading it across multiple services. If one service doesn't perform well, the performance of other services can cover up, protecting your business from unexpected market changes.
How can service diversification give my printing business a competitive advantage?
Service diversification can give your business a competitive advantage by setting it apart from competitors. Offering a variety of services makes your business a one-stop solution for all printing needs, which can be a unique selling proposition.
How does service diversification lead to higher customer satisfaction and retention?
Service diversification can lead to higher customer satisfaction and retention by offering a wider range of services. This convenience factor can attract new customers and keep existing ones coming back for more.
How does service diversification encourage innovation and adaptability?
Service diversification encourages innovation and adaptability by pushing your business to stay current with technology and trends. Offering diverse services means constantly updating and innovating to meet rapidly changing customer needs.
What are some examples of services I can add to diversify my printing business?
Examples of services you can add to diversify your printing business include high quality short-run digital printing, large format printing, graphic design services, or direct mail services, just to name a few.
How can I start diversifying the services in my printing business?
You can start diversifying the services in your printing business by first identifying the needs of your customers that are not currently being met. Then, research and invest in the necessary equipment and training to offer these services. You can also partner with vendors like Western Trade Printing to diversify your offerings.
Are there any potential downsides to service diversification in the printing industry?
While service diversification has many benefits, it's important to manage it effectively to avoid potential downsides such as over extension, lack of focus, or increased operational complexity.
How can I measure the success of service diversification in my printing business?
You can measure the success of service diversification in your printing business through metrics like increased revenue, customer retention rates, customer satisfaction scores such as the Net Promoter Score, and the performance of each individual service.
