06 Jun A PSP’s Guide to Staying Competitive in the Age of Consolidation
The last decade has been filled with accelerated consolidation across a wide variety of industries. And the printing industry is no exception. Mergers and acquisitions large and small are everywhere, chiefly due to the prevalence of small and medium-sized businesses within the industry.
Over the past 5 years, 47,153 PSPs have closed or been acquired. Some see this as an opportunity, but, for many print service providers, this rampant consolidation is causing concern. Independent and family-owned businesses are wondering how long remaining independent will be practical.
Small to medium-sized providers have one key advantage over larger businesses: flexibility. As an independent business owner, you’re empowered to innovate and experiment in ways that many larger organizations are not. Here are some steps small to medium-sized providers can take that will have them going toe-to-toe with even the largest competitors.
Go Green
Consumer preferences are trending toward sustainability, and that means PSPs must work to overcome the assumption that an industry founded on paper is inherently unsustainable. Thankfully, the printing industry was one of the first to begin implementing sustainable practices. The North American paper industry already plants more trees than it cuts, and 39% of papermaking fiber comes from recycled paper.
PSPs have a variety of options if they wish to go green, including using responsibly sourced paper, switching to soy or vegetable-based inks, and reducing waste by adopting technologies like print-on-demand.
Invest in Automation
Investing in automation allows you to remain competitive without spending a fortune on new equipment or employees. Consider incorporating a web-to-print system into your business model. This will allow your clients to design, submit, and pay for orders on your website. Not only does this offer additional convenience to your customers, it frees up your staff to work on more advanced and lucrative projects.
Web-to-print was once the sole territory of multi-million-dollar organizations, but recent advancements have made the technology available to independent PSPs. An added bonus of investing in a web-to-print solution is that payment is collected when the order is placed instead of when it’s completed, boosting cash flow.
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Reduce Your Rates
The number one thing small to medium-sized PSPs can do to stay competitive is keep costs down, while still offering the personal attention that large organizations can’t. But, in order to keep pricing competitive for your clients, businesses must confirm they’re not overpaying their own vendors.
Take credit card processing. This service has many benefits to print companies, but because of the unique way PSPs handle cards, it’s common for them to be overcharged. Most PSPs see a mix of business coming from consumers, other businesses, and the government.
What many don’t know is that rates on business and purchasing cards are generally more expensive if certain additional data is not submitted with a transaction. Utilizing a processing method that allows you to qualify for the lowest rates, whether you’re swiping or manually entering card information, can save thousands of dollars a year. Click here to learn more about how to qualify for lower rates.
Final Thoughts
Small businesses are vital to the American economy. They drive innovation, supply large companies, and account for 49.2% of private sector employment. And consumers know this. 7 out of 10 consumers consider it important to shop local. That gives small to medium-sized PSPs an advantage over larger companies that can only be squandered if other customer preferences aren’t considered, or pricing isn’t competitive. It’s vital that print businesses start thinking about how to retain loyal customers sooner rather than later.
BASYS has been family-owned since our founding in 2002, so we understand the effort it takes to remain competitive in the age of consolidation. We work with print companies and associations around the country to help businesses like yours reduce their processing expenses and keep up with the competition. If you’re ready to start saving, we’d love to hear from you.
BASYS Processing as a business partner
Does your current processor understand the unique struggles of your industry? Do they provide great rates and personal customer service? Are they offering solutions to grow your business and being proactive about helping you reduce risk and increase your savings?
Contact BASYS today to learn more about innovative payment solutions that will save you time and money. We make accepting debit cards and credit cards convenient, safe and affordable.
BASYS Processing features:
• A friendly, live voice will answer the phone when you call; no automated phone systems
• In-house PCI Compliance team to walk you through the process step-by-step, improving security and reducing costs
• Accept payments in person, over the phone or online
• Next-day funding options
About BASYS Processing
BASYS Processing provides credit card and debit card processing services, plus solutions that include terminals, virtual terminals, e-commerce, mobile, and point-of-sale, customized to fit any need. Banks, associations, and software partners depend on us to strengthen their reputations and relationships with their customers by providing remarkable service paired with ultimate flexibility and pricing. Merchants depend on us to make accepting credit cards and debit cards convenient, safe & affordable. BASYS was founded in 2002 on one philosophy: to take care of our merchants, partners, and employees so they never want to leave. We are dedicated to working one-on-one with our customers to design the perfect solution. BASYS is Personal Payment Processing.
Learn more at basyspro.com, and connect with us online at: