Reaching the point where Cregan could provide envelopes that surpassed customer expectations, however, took a good deal of training. Although many people take envelopes for granted, he says, learning about the product can be difficult. "It's a lot more complicated than people who aren't in the industry probably think," Cregan says. "There's quite a learning curve."
Cregan had to learn about a variety of adhesives and paper substrates, custom designing address windows and communicating ideas to manufacturers. Once he understood the product and its requirements, the process became relatively simple. "Whether it's including color and custom inside tints or adding a window where they were affixing a label, the key is to add value for the client," Cregan says.
Five years ago, during a meeting with his first envelope client, Cregan created an opportunity to do just that. Prior to making a cold call to a cement business in the area, he requested a copy of the company's informational materials. "They sent these beautiful 4-color brochures and catalogs in a plain white envelope," Cregan says. "It was tearing in the corners because they had stuffed way too much into it."
Cregan asked Atlantic Envelope's sketch artist to design an envelope that matched the tone and style the company depicted in its brochures. Cregan also asked the artist to create an envelope that would enhance the company's image and stand out in a pile of mail.
During the sales call, Cregan showed the client the torn envelope he had received in the mail, then a mock-up of the envelope his sketch artist had designed. "It was a really nice-looking piece," he says. "It had a 4-color-process design, and the customer was just blown away." Going the extra mile helped Cregan intrigue the client and establish himself in the account. "We had never sold anything to them before," he says, "but it turned out to be a decent-sized account for us."
Targeting the Right Clients
Almost every business uses envelopes, but that doesn't mean all businesses are ideal targets for envelope sales. It's important to home in on the most lucrative envelope opportunities, says Robert Martinage, manager of client services for Boston distributorship InfoGraphix. He suggests focusing on companies that advertise with direct mail. "Direct mail is a big part of what's driving the demand for envelopes," Martinage says. "I anticipate it will continue to rise, particularly because marketers are being given more restrictions in terms of phone solicitations."
Variety and innovation are basic concepts to remember when providing envelopes to direct mail clients. "If they're sending out unsolicited direct mail, use an envelope that will stand out more than your typical #10 or #9 envelope," Martinage says. "You're probably going to want something with a lot of color and wording that attracts attention."
Martinage also suggests focusing on end users that generate large monthly mailings such as clients in the annuity, insurance and health care industries. Unlike direct mail applications, statement and invoice envelopes don't require flashy colors or catchy advertising. However, clients usually appreciate suggestions for improvement. Simple changes such as paper upgrades and subtle design alterations can transform dull statement envelopes into classy ones. "The key is to add value and find ways to cut costs," Martinage says.
Cregan agrees. "It's important to take time to learn about envelopes because mistakes can be costly to the manufacturer, the distributor and the customer," he says. "It's a custom-made product, so there are a lot of details involved. If the product comes out wrong, it hurts all parties involved."
Atlantic Envelope's sales staff focuses almost exclusively on large accounts--a typical client of the distributorship uses more than 1 million envelopes annually, Cregan says. Like InfoGraphix, Atlantic Envelope pursues direct mail clients. As the transactional side of the envelope market decreases, Cregan hopes to supplement sales with applications such as credit card solicitations. "Monthly statements and bills are declining," he says. "At some point in our lifetimes, they'll probably go away. But advertising is a growing piece of the business. Even in tough times, companies are still sending direct mail. It's the least expensive way per customer that they can advertise."
Hitting the Mark
Preparedness is the mark of a superior envelope salesperson, Cregan says. During training, Atlantic Envelope's sales staff learns rule No. 1: Never visit a customer unprepared. "Before you go on a sales call, whether it's with a brand new client or someone you've been doing business with for 12 years, have a reason to see them," Cregan suggests. "Have something new to show them or tell them about."
The important thing isn't selling a new product or generating an order, Cregan says. It's gaining the customer's esteem. "If I just come in, sit in front of you and say, 'So what envelopes do you have for me to sell you?' you're going to lose interest in seeing me," he says. "But if I bring you a new product sample, and the next time I come in I bring something else, it shows I'm innovative and creative--a true partner in your business."
Van Berkom also takes the partnership approach when selling envelopes. He suggests simple ways his customers can improve their envelopes without spending frivolously. "I try to introduce a better product than what they're using, by incorporating a color logo, using a different type of adhesive or color-coding envelopes that serve different functions," he says.
Van Berkom also eliminates guesswork for customers by finding the most appropriate envelopes for their mailings. "Helping a client choose the right envelope requires some of the same skills as good forms design," he says. "The best strategy is to see how an envelope is being used, then fit the envelope with the product that's being mailed." For example, he says, a bank may use a 9 x 12-inch envelope for its investment portfolio report that requires a custom die cut for the address window. Another company may use a pocket envelope for its prospectus. "Making clients aware of what's available is one of the things I most enjoy," Van Berkom says.
In addition to providing the best envelope for the job, Van Berkom also looks for envelopes that serve dual purposes. "Envelopes are good vehicles for cross-selling," he says. "You can express your creativity and do the customer a good service by improving his visibility. You also solidify him as a client because it's likely he'll reorder."
Van Berkom recently provided a financial institution with a 9 x 12-inch envelope featuring a custom inside tint, two colors on the face and a special window. The envelope also featured ads on the back touting the company's financial services. "What made the project a little difficult was redesigning the exterior and interior, and coming up with design ideas to make it convey a nice colorful image," Van Berkom says. "The customer loved the envelopes because they helped to enhance its presentation."
6 Ways to Provide Innovative Envelopes
1. Know what you're up against. According to Kevin R. Cregan, director of Smyrna, Ga., distributorship Atlantic Envelope, envelope distributors face clear challenges: new technologies, internet access and online bill payment. "The way we overcome these challenges is to design mail pieces that you can't duplicate electronically," he says. "Since direct mail isn't going away, it's our job to help the customer create envelopes that make people want to open their mail."
2. Research manufacturers' capabilities. Some manufacturers have more than others. "It's always important to know who does what kind of envelope and what they're most competitive at," says Robert Martinage, manager of client services for Boston distributorship InfoGraphix. "Some manufacturers who don't have the right equipment may quote the job for you, but they're not going to be cost-competitive." He says the important quality to look for is diversity. "If a manufacturer has capabilities that range from short runs to longer runs, it's going to be able to handle a lot more diverse business than a company that just does long runs," Martinage says.
3. Know the code. It's important to know post office regulations governing envelope size, weight and technical specifications. Mail that can't run through automated postal machines is significantly more expensive to process and doesn't qualify for bulk-rate discounts. Depending on the mailing size, those discounts could save end users thousands of dollars. "It's our job to teach our customers and our salespeople the technical aspects of the envelope," Cregan says. "All our salespeople are certified postal partners" who must pass an exam the post office administers twice a year.
4. Consider gang runs. Steve Van Berkom, CDC, president of Mandan, N.D., distributorship Van Berkom Business Products, saves clients money by running several different orders on the same press. "I try to gang orders with the same-sized envelopes and similar paper weights," he says. "That reduces my costs and keeps me more competitive in the market."
5. Ask about inserter specifications. As technology for automated inserters has improved, their specification requirements have become more particular. "Our sales staff asks customers what types of inserters they're using so we have the right specs for producing the envelope," Cregan says. Without the right specifications, envelopes could cost end users a lot of time and money.
6. Use a variety of sizes and materials. Distributorships with diverse envelope mixes are more likely than others to attract envelope clients. InfoGraphix most often sells #9 and #10 commercial envelopes. It also sells a large quantity of 6 x 9 1/2-inch envelopes in which ballot forms are mailed to shareholders. Atlantic Envelope's popular envelope applications include open-ended booklets and expanded envelopes with gusseted sides. "Tyvek® is a good envelope material for customers who want additional strength," Cregan says. "If you're sending a thick stack of papers, a regular paper envelope could burst. The Tyvek envelope provides superior strength, protects important documents and can be printed in up to four colors."
