How can a small to medium size PSP compete with multibillion-dollar print operations? Correct, BILLION DOLLAR PRINTERS. You may think FedEx and UPS are the folks who help you deliver print jobs to customers. You may think Staples and COSTCO have office furniture and bulk candy for the office. All are true. But what they have, and do well, are printing services. These behemoth, public companies, effectively compete in the Small Office/Home Office (SOHO) market that is so important to small and medium size PSPs. A look at some large retail chains offering print services follows in this brief competitive analysis of that segment of the print market. While reading this article please keep in mind that print is but a small portion of their overall revenue; and it is positioned as an important value. If you read nothing else in this article, let that last point stick in your head. Billion dollar corporations that research every aspect of their business in detail position print as a value add.

FedEx ($84 Billion) owns and operates 2,200 FedEx Office retail stores. They offer in-store self-serve photocopies and print on demand booklets, posters, etc. Virtually any print product is available through the upload and print website. 17 geographically strategic production facilities produce an impressive range of marketing and corporate products.

The FedEx stores are corporate owned and have a very consistent service profile. There are different layouts and sizes to the stores depending on where they are located. Locations range from standalone stores to smaller scale strategic stores in large office buildings, conference/exposition centers, hospitals and universities. Hold at location for customer pick up, being to order online and have a delivery available in any of the retail locations or delivered directly to the customer is a huge advantage, one I have personally used many times. The advantage of corporate owned stores is the degree of conformity to an expected service profile and product availability. Most stores have rental computer workspaces and personnel with varying degrees of computer support expertise, as well as basic stationary product and occasionally candy bars!

UPS ($70 Billion) acquired Mail Boxes Etc. (MBE) 20 years ago and converted them to a branded environment: The UPS Stores (TUPSS). The logic was to be closer to the small business communities that were already MBE customers. As one TUPSS executive explained it to me “Every store owner just needs to ask two questions of their mailbox customers to get print orders.”

1. “What kind of business do you own?” 

2. “How do you market your business?”. 

The simplicity of this two-step query is brilliant, and the opportunity to offer solutions is immediate. There are currently over 4,500 TUPPS in operation. The majority are franchises owned by individuals. The print knowledge varies wildly from store to store. Most of the print business TUPSS handles is generated from 10-15% of the stores. The productive stores most often have owners with some print production background. However, some owners want a simple business, and so focus on pack, ship and selling air (mailbox rental). Some I have witnessed, don’t even plug in the photocopy machines or get them repaired. Sad but true. A manager explained that their owner made more money from packing one package than he could make in a week of photocopy sales. Savvy revenue assessment, poor consistency in the store-to-store customer experience. Owner independence comes at a price.

Staples ($10 Billion) operates 1,063 US stores (plus Canada, UK). In store print service centers/online web-to-print are the drivers for orders. The service centers have well trained staff. The staff is knowledgeable on the products Staples supplies. They are not printing experts but have resources within the company to ask questions beyond their experience. Staples also has an impressive, well-staffed graphic design team that is a value add service for customers. A Sir Speedy or Allegra PSP may well have more well-rounded employees, but as always, that comes at a cost passed on through product prices. 

Digital printing, signage, in-store photocopy service and 4-color printing are offered. The product portfolio consists of marketing media well suited for the local SOHO markets their retail stores serve. The marketing services in some cities are offered in specialty Staples stores but are limited to some US east coast metropolitan areas. With a higher level of expertise, Staples has a corporate sales team engaging in document management services as well as traditional marketing print products. It is impressive that they have comprehensive marketing resources for small business and supports their B2B focus with levels of sales expertise to drive business.

COSTCO ($122 Billion) is the 800-pound gorilla of the behemoth companies offering print services. The printing services are available online in a typical ecommerce upload and print model. But it is the 15 Business Center warehouses that offer the comprehensive support. The print services team are well trained print service reps. It is not just the business focus on print products that makes the business center vital. It is the entire shopping experience. A small to medium size business can acquire pretty much anything needed to run an office and procure marketing materials. It is what is required to be successful in retail in the today’s worldwide market. Experiential shopping environments make the most of the space they occupy. Make no mistake, the COSTCO warehouse shopping experience is not the same as a Manhattan 5^th Avenue boutique. Just know it is of equal importance and consideration to both.

With virtually any print product an SMB may need more or less available from these corporate giants how does a small PSP compete? How do they grow? What is the value they add that makes them a better choice than the big business offering? Can a small business ever receive a print order and then send the client to Aisle 4 for a 64 oz. jar of Peanut M&Ms and aisle 12 for 48 rolls of toilet paper?

With time as one of the most difficult things for a small business to manage efficiently, the decision on where to spend it is of paramount importance. I invite any small to medium PSP to comment with their solution to competing in the same market as multi-billion-dollar corporations.