Printers cite positive influence of 'good' PM firms but warn price-based model will fail

Good print management companies have had a positive impact on the industry but those that chase price alone with no loyalty to their clients will fail in the current market, industry figures have said.

Print management has caused controversy in the industry over the past decade with detractors labelling print managers "lazy, greedy and short-sighted".

Advocates, however, have claimed that print management enables printers to fill spare capacity and gain access to large contracts they would not otherwise be involved in.

Daniel Pattison, sales director at east London-based Augustus Martin, said he has noticed an improvement in the way the industry is run since print management got a foothold in the market.

He told PrintWeek: "Some print management companies are very professional in the way they deal with clients. They document and process what is happening and have caused printers to look in on themselves and make changes. There is now more of an emphasis on Key Performance Indicators and Service Level Agreements which tightens up businesses and has been for the best.

"There are different types of print management companies, those that want to run an auction and those that want to manage the needs of the clients and ensure a fair price. Good print management firms look to make savings on distribution, packaging and ensuring a product has a longer lifespan."

Richard Saysell, managing director of PoS specialist Creo Retail Marketing, agrees that print management has brought good account servicing into the industry, but said that most print management companies are of detriment to print.

He added: "The market is looking at whether print management companies deliver value. With printers falling into administration, there will be less of a drive for printers to chase volume. This will cause those bad print management companies with no loyalty to fold."

The sentiments ties in with Communisis chief executive Steve Vaughan's comments at the Stationers' Hall debate last October urging print managers to stop chasing revenue, a practice he described simply as "vanity".

Vaughan said: "If you're buying print and charging a mark-up then technology has already killed you off. You might not have realised it yet, but it will get you in the end."

In the eyes of many printers, print management has pushed down margins across the board, valuing price over any other consideration. Other printers have had to alter their business structures to adjust to print management's effect on the market. 4DM chairman and chief executive Charles Grant-Salmon, focused on added value after predicting a rise in print management.

He said: "I'm in favour of print management if it's done properly. A three way relationship between printer, client and print manager can work if the print manager employs professional, intelligent people.

"I work with a lot of bluechip companies and I noticed a trend for them to outsource non-core activities. I followed this trend and still feel confident it was the right decision. However, it is about market drives and those that are relying on cutting prices are likely to suffer."