More money is made on W2P by iron hawkers (and the consultants they bring in) from naive PSPs than one might think. The art of bundling services such as W2P to accentuate and thus increase profits of the overall deal is becoming commonplace. It’s all part of the “features and benefits” tack of major press and equipment manufacturers and their glad handing salespeople. PSPs are suckers for iron and somehow they just love to touch and feel samples and papers. It’s as though they just go stupid when a manufacturer calls up and asks to show them the new model or the new substrate or the new software that will somehow make them filthy rich.
A good analogy is when I go shopping when I’m starving. First of all, I hate food shopping. I leave this to my wife and rarely ever set foot in a store unless it’s with my twin boys and we’re picking up a treat or a reward (both are avid athletes). That’s when we go stupid and buy the Ben & Jerry’s, the chocolate fudge AND the whipped cream. Knowing that mom rarely buys anything to go on the ice cream, we have to go get it ourselves.
PSPs act the same way when they are coerced by iron hawkers that they are convinced that they cannot buy the press without the W2P package and the mixing station (which will never get used) bundle. And while we’re at it, we’ll throw in the inline coating unit (for a minor 200K) as this will only increase your monthly nut by $300.00 a month. One word of advice: PSPs who are in need of more revenue and new customers (yes that’s you), stop shopping for iron! Better iron isn’t going to increase your numbers one bit. When your iron is tired and breaking, then and only then should you shop for iron.
And if the iron hawker convinces you that his solution will allow you to print for 20% less than what you’re doing – run for the exits! The simple answer here is to invest in sales and marketing to find those with need and then go after those whose needs you can fulfill with what you have. When the additional work begins to overwhelm your current capacity, then and only then do you go shopping for iron.
More sales is the answer. Don’t buy a system with hopes that you can sell more customers. Customers won’t buy it and they won’t listen to you. They don’t care about your iron or its capabilities. It’s “just a box” to them and it should be “just a box” to you. Today’s larger companies which bring real opportunity to a PSP have no understanding of the print process and they have little to no concern of how a job is accomplished. They delegate the task of purchasing print to low level marketing managers who simply want cheaper print in smaller quantities and they won’t buy it because you tout efficiency, capability, quality or beauty. In their limited experience, they believe that “any PSP with a press can put ink on paper”. The only criteria they understand is PRICE and TURN!