With run-lengths dropping, customers must be able to justify a purchase with existing work and not count on new work that a piece of equipment may generate. Overall, in-depth interview respondents said they will wait until a piece of equipment is completely used up before bringing in something new. This means that for manufacturers, up-selling is key. While replacing some pieces of equipment, like guillotine cutters or folders, is rare, there are ample opportunities to sell material handling equipment and in-line add-ons such as scoring, perforating and inkjetting equipment.
Purchasing Influences: Peer Groups
A growing trend is the formation and rising impor-tance of formalized peer groups which have emerged to act as an alliance of sorts to both share information and provide detailed advice. Comprised of anywhere from five to seven business owners or managers, the group acts as a de-facto board of advisors to help run the printing business. They often gather as a group once or twice a year, but speak almost daily. One of the key things that the peer group does is share recommendations on equipment purchases. So, one sale into a peer group can lead to many other sales if the equipment performs as expected and improves that printer’s business.
Based on the results of the survey, we found that folders and cutters are the most likely categories for purchase intentions. These two categories are also most likely to be installed, cutters (97% of the sites in the survey) and folders (83%). All sites surveyed own at least one piece of floor model equipment in one of the categories covered by this study.
There is opportunity to improve efficiency and increase job profitability through upgrades to a print-er’s binding and finishing operations. Printers have seen the light when it comes to press decisions. Often times they are able to replace two presses with one new press—the efficiency of the new machines far exceeds machines only 10 years old. The same production efficiency enhancements can be made in the bindery and the savvy printer will find profits to be made in the bindery. It’s up to us as NPES members to drive that message home!