Choice is a primary characteristic of a vibrant economy. There are so many different automobiles, appliances, colleges and packaged foods available that we have to consult large consumer guides before making a purchase. It's a wonderful scenario for consumers, but it has its drawbacks for suppliers, manufacturers and distributors.
The plethora of products and services can lead to the phenomenon of commoditization--the perception by customers that excellent products at competitive prices are readily available from many sources. Salespeople, in the course of day-to-day selling and its emphasis on "getting the order," may not fully appreciate how much commoditization can change buying behavior.
In fact, it can be argued that perceived commoditization, rather than the remarkable technological changes of the past dozen years or so, is the single most significant development in the graphic arts industry. It leads directly to intensified price competition.
We can rue this development and rail against it. But it's also important to accept the reality of commoditization. It won't go away even if a sudden, stunning economic recovery occurred. God hasn't singled out the graphic arts industry for punishment. Commoditization is a natural economic condition that eventually reaches all industries, including all or most of your customers. It can't be reversed.
As I've said, price competition and the appearance of buyer disloyalty is the inevitable consequence when buyers believe that good products delivered on time at competitive prices are readily available from many sources. There are some other, more subtle consequences. A recent survey by printbuyersonline.com revealed that many print buyers who have problems with suppliers don't confront those suppliers and instead try to resolve matters. Many of those print buyers find it easier to simply say nothing and take their business elsewhere.
Suppliers at every level of the chain shouldn't assume all is well as long as they hear no complaints. You must conduct research on an ongoing basis. The reasons go beyond identifying areas of dissatisfaction, although that alone justifies the investment.
Customers' businesses, needs and perceptions are undergoing change, and economic conditions of the past three years have magnified and accelerated this truth. For instance, throughout the supply chain, cash flow has become as critical as profit. We see buyers, otherwise satisfied with a supplier, dropping that supplier to go to another resource solely because of the speed and detail of invoicing.
Whether you're a supplier, manufacturer or distributor, the range of products and services offered by the average reader of this column has increased during the past few years. Be candid: Are all of your customers conversant with all of those products and services? Most of us recently have been told by a customer, "I didn't know you did that!"
A great deal has been written about the need for print companies to meaningfully differentiate themselves. But do you know how each of your important and high-potential accounts differentiates itself? The answer may lead to a better understanding of your customers and may better enable you to create printing for them.
This is fundamental: You need to determine a problem before suggesting a solution. Don't assume you understand a customer's business needs simply because you gathered information a year or two ago. Things are changing that rapidly.
Contributing Editor Dick Gorelick is an award-winning authority on sales, marketing and business strategies for the printing industry. As president of the Graphic Arts Sales Foundation in West Chester, Pa., he travels extensively, consulting, writing and speaking on sales training.
