Printing Services Broker Business Plan

The market for printing is worth an estimated $168 billion nationwide according to the 2001 Printing Industry of America (PIA) report and projected to grow an average of 5% per year. The 2002 print markets will mirror the growing but slowing economy. Total US print shipments should grow around 5% to approximately $171 billion. This rate of growth in print shipments is slightly below the growth in total US economic output not adjusted for inflation, reflecting the transition of the printing industry from a growth industry to a mature industry. However, this should allow plenty of opportunity for printers with an additional $8.2 billion in printing shipments. Approximately 2% of the growth in print shipments is expected to reflect price increases, leaving around 3% real growth. Copriso’s predecessor, ePrint, Inc., has been selling at a rate of approximately $160,000 per year with no sales efforts at all for the past 5 years.

4.1 Market Segmentation

The printing industry is separated into the following market segments with the following anticipated growth:

Although Copriso handles all business printing needs, our focus and expertise will be towards the larger scale, full color promotional and marketing pieces. Our ability to source more effectively and job specifically allows us to offer a much more competitive rate for each individual circumstance. Our ideal product focus is with full color, sheet fed printing. Customers for this product include, marketing and advertising firms, manufacturing, retail, and restaurant.

4.2 Target Market Segment Strategy

There is already a sense of segment strategy in the way we define our target markets. We are choosing to compete in the small to medium size business segment which we define as 10 to 200 employees with sales ranging from $250,000 to $5 million and printing expenditures of between $5,000 and $30,000. Industries include construction, property management, healthcare, manufacturing, Colorado based retail chains, Medical, Accounting and Legal firms.

We are not adverse to doing business outside the Colorado front range, however, our marketing and sales efforts are directed within Colorado. We believe that this segment of the market would not use an advertising/marketing agency yet would need the services of a printer instead of doing their own in-house work.

Our strategy revolves around “partnering” with clients. The smaller customer is likely to produce their own printed materials and larger customers tend to use the services of an agency. Medium size companies have the need for more professionally produced printing while not having the established budget to substantiate hiring an agency. Our goal is to provide an exceptional level of service while saving our customers money.

We have acquired lists of potential clients through the services of InfoUSA, a recognized leads source. With the focus that we’ve chosen, and the area within which we’re looking, there are over 5,000 immediate targets. With excellent businesses growth in this area, we feel that there are sufficient opportunities to keep our business easily on track.

4.3 Industry Analysis

The printing industry operates in an environment where a myriad of forces work on costs, prices, product demand and supply. Paper prices, electricity costs, labor conditions, and capital costs impact the bottom line, while changes in new printing technologies, emerging advertising media, new ways of conducting business, and the strengths of the print buying industries all impact the top line. Although there has been a softening of the economy in general, the printing industry is not as discretionary as other market segments.

4.3.1 Competition and Buying Patterns

In printing, cost and service are the two key areas. Sales efforts within the industry are generally sparse. Most quick and small commercial printers rely on Yellow Pages advertising and referrals in lieu of a direct sales effort; most are not truly full service printers; most rely on name recognition. We also feel that 80% of customers are willing to try alternative sources for their printing needs because there is a general lack of quality service to support the continued patronage of existing clientele.

As a service-centric business, Copriso, will strive to maintain existing customers with high quality service while educating them in additional services and products. Printing in general is not sales-centric as it is a necessary business expense. Therefore, most printers rely on customers coming to them. By going to the customer, we can capture a lion’s share of the existing printing purchases.

Comparison of local competition is shown in the following table.