Are people living in a bubble?
Posted in From the desk of blipfish on March 31st, 2008Don’t get caught using a screwdriver when you need the hammer. You have a full toolbox for a reason.
I performed my checklist:
1. Coffee? Check.
It’s a mild, Ipanema Bourbon from Brazil.2. Breakfast? Check.
Whole wheat bagel and a Chocolate Myoplex. Mmmm.
3. Full moon? Nope. Check.
It’s daytime.
So, I’ve eliminated potential grumpiness as a possibility so I guess this qualifies as a legitimate and necessary rant. Wow, I finally get to rant on my own blog! Happy, happy, joy, joy!
I shall proceed.
Are some online POD users living in a bubble? I fear they are.
This isn’t the first time but it’s the most recent string of multiple times I’ve encountered fellow Print on Demand (POD) retail sellers missing out on opportunities because they didn’t think outside of their established bubble. In particular, the recent subject (but not the only one) was about a chance to sell a large, bulk order to an organization but it was not practical given the lack of cost-effectiveness in using a POD service. It was suggested that the POD company was at fault for not being cost-effective to make their opportunity worthwhile.
Print on Demand services have come a long way. They’ve come so far that practically any person can produce products for sale online without a modicum of talent, business acumen, or experience - and potentially make money. It also means that talented, experienced, and driven individuals can really do well if they learn to bring-to-bear their skills, too. In other words - anyone can try and succeed on an equal playing field and that’s unusual in many business models.
The problem is that POD’s can often give an illusion that business is easy and that everything should be able to be done within the scope of that one service. Granted, a great many things can be done within a single POD service: varied products, online ecommerce website, analytics, promotion, advertising, awareness, production, fulfillment out the shipping door, customer service, hand-holding, you name it.
That’s the thing - it’s too easy for inexperienced business people to get comfortable operating within this vast, convenient system. They forget (or never realize in the first place) that many businesses reach, grow, develop, spread, and expand - and I’m not talking about the POD service I’m talking about our business as the online seller.
The best example would have to be myself.
I began using a POD service because I wanted to print promotional items for my other business of the time. I wanted a few tshirts and coffee mugs - and maybe the odd mousepad to give away as promotional items and gifts to help spread the word of my business. In the end, for other reasons, I sold the first business and was excited at the prospect of using POD services to start another business - which I did.
However, over time, the fact that my origins are in physical, offline marketing and “pounding the pavement” I came to find business opportunities in the brick and mortar world. Actually, I came to find more and better opportunities than I did online - not that online hasn’t been good. It’s just that my tendency is to deal with people more than pixels… it’s just my default.
So, it wasn’t long before I had sales opportunities that couldn’t be handled through my online POD resources because the very things that made a POD so appealing were also the weak points for these other sales. Sometimes PODs are great because they help unfunded startups set up shop right away with no cost, no prior skill set, no experience, and still have a fighting chance of making money. However, PODs, in order to make that work, have to instead pad their prices on each sale to account for their initial expenses.
By contrast, established print companies are set up differently - on entirely different business models to be used for entirely different sales types: bulk.
When I first began getting orders for hundreds of shirts it was obvious from the start that a POD would be painfully low-profit due to the higher cost-per-unit and shipping expense. Bulk printing by a company that specializes in this was far, far more lucrative for me - but I was a newcomer and really wasn’t in a position to bargain my way out of the initial investment. So, I bit the bullet and used my credit card to pay the few hundred dollars to the printshop to complete my order and I also got them to agree to package and ship for me - not an unusual service these days and one I’m very glad to see offered. Yes, I made sure the group making the order (a 10 year class reunion committee) was contractually committed to the sale and that I also got a sample shirt first to sign-off on the final product before shipping.
I had already done the easy math to determine that the money I spent upfront would be justified because the due-date and payment-by dates were such that I’d only be “out” that money less than a month and it’d obviously bring me better profit than the cost-prohibitive POD alternative. These were details I worked out with the print company as well as the reunion committee before hand and I was sure I’d make my profit early on so my initial expenses wouldn’t be on my shoulder longer than a week or so (well before my monthly credit card payments were due).
It was all about using the right tool for the right job. In the end my business still provided the service and made the money, I took my profit, and a customer that found me got what they wanted. It was just a matter of not being tunnel-visioned and using available services that fit the job rather than trying to cram a square peg into a round hole with a POD service.
To this day I sell more bulk than I do single POD units. It also didn’t take long to establish a line of credit with my printshop because they knew I had paid upfront or on-time and established myself as a long-term customer. They were happy to work with me on a credit basis to allow me to keep my cash flow favorable knowing it meant I’d regularly use their service. This was another benefit of working with a service that operated under a different business model than a POD must.
I’ve since branched out when the need arises by using printers in Canada or England for the occasional non-US sales. I still must operate under pre-payment but that’s to be expected. I still make a profit in the end and eventually, I hope to improve my relationship with their services so I can begin operating with a modest line of credit or better payment terms.
It pains me to hear about lost-opportunities because someone didn’t think to find the right tool for the job or were, perhaps, afraid to step out of their comfort zone of familiarity.
We all would agree that a “successful” business is what we desire but successful often means it lives on a diet of not only perseverance and commitment but also expansion, branching, diversifying, adapting, and growing beyond single resources.
It’s with this that I hope I can help you further develop your success by sharing my experience (and of course answer any questions you might have). Success is a process of building and growing - not remaining static and confined.
It’s been a long time since I’ve geeked-out. Actually, it’s been a long time since I’ve had a reason to geek out.
Just a quick note, since I was asked yesterday and didn’t have time to answer until now; regarding the difference between Features and Benefits.