For forms distributors, the cash is in the college market.
You don't have to be a Rhodes scholar to realize that a forms distributor's opportunities can be limited when selling to public school districts. With laser printers practically in the classroom, office supply superstore competition and, most of all, bidding regulations, what are distributors to do? If they're smart, say those who have been there, they'll skip school.
For colleges, appearance is everything, providing opportunities for distributors who can handle commercial print jobs. This brochure, for example, was created by Rick Lewis and Debra Bradfield of ProForma Preferred Systems in Long Beach, Calif., for Brooks College.
"We used to do a lot of mailers for the Wichita school district; and grade reports and transcripts were once big business," said John Osborne, president of the Wichita, Kansas-based distributorship Midwest Single Source. That, he noted, is no longer the case.
Today, schools know what they want and, because they are federally funded, they simply solicit bids for the lowest price. "Back in the '70s and '80s they needed insight on forms design, etc. Today that's minimal—teachers literally do most of it on laser printers right in their home rooms," Osborne said.
Compounding the problem is the fact that low bidders can come in from anywhere—including out of state. "There can't be loyalty. In most situations, you have to be the lowest bidder out of 20," continued Osborne. "When I'm awarded a bid it's almost always because I've made a mistake on pricing."
He also noted that those who are selling to the city generally have the right to sell to the county at the same price. "The accounts go to those that have the price matrix that gives them the appearance of being the lowest cost producer. They don't actually have to be, they just have to ap-pear to be."
Campus Life
A better bet for forms professionals is to head straight for college.
Larry Ortt, CFC, a sales representative at St. Louis Business Forms, Fenton, Mo., also chooses to deal with colleges and universities. He noted that while the bid process means there often isn't a lot of opportunity to add value at a public institution, private schools are a different story.
"In most cases each department head is responsible for its budget and they spend the money like it's their own," said Ortt. He added that there is more opportunity in some departments than in others, as the larger and more visible the department, the more likely it will draw competition.
Midwest Single Source has accounts with two private colleges, and Osborne noted that the lack of bidding demands is a major advantage in selling to them—although there are generally requirements from the institution that accredits the college that must be met.
"The purchaser should be getting the best buy for the college's money," Osborne explained, "and it's in their best interest not to buy from the brother-in-law of the president of the college. But if it's an arms-length deal and you are a legitimate distributor, the benefits are there."
Osborne added that Midwest Single Source enjoys good ongoing business relationships with its private college accounts. "As they've grown, we've been able to sell them a lot of furniture," he explained, "and printing sales are a constant because they are always having events."
These events generate, among other things, orders for tickets and promotional items such as buttons, beer mugs and various giveaways.
Cut sheets, letterhead, envelopes, parking permits and bar-coded photo ID cards make up a large portion of Ortt's sales. And as the demand for certain products, such as continuous forms, declines, sales of promotional products and commercial printing are spiking.
"I sell a lot of direct mail, alumni solicitations, booklets and high-speed copy work," said Ortt. "I'm also selling a lot of ad specialty items to bookstores as well as magnet business cards and the like."
Ortt also has accounts with public universities and community colleges, and admitted that in a bid situation, sales can be difficult. "They're always going to go with the lowest dollar," he said, adding, however, that it's not black and white. "Sometimes, if you have a little insight into what's going on in a particular department, you're in a better position to be awarded the bid."
Midwest Single Source, said Osborne, has been selling to Wichita State University for many years—but the accounts come and go. "We lose the contracts every once in a while," he said, "and it can be a pretty good hit. But that's the way it is."
He also noted that most bid jobs are on a very small margin. "It becomes one of those situations where you try to substitute products that you can make more money on," he said. "It becomes a question of who can best manipulate the numbers."
Private or public, however, all universities have private satellites connected to them—providing key sales opportunities for distributors. Endowment and alumni associations and, generally, sports departments are disconnected from the main purchasing areas and are treated as private institutions.
"They have their own budgets and don't need to adhere to the same rules and regulations as the main campus," said Osborne. "However, they are generally on the campus, so you can easily touch base with them."
Ortt stressed the idea that at the college level, distributors have a whole campus of opportunity. "You can go from door to door—and they'll be doing one thing in one room and something completely different in another," he noted. "If you don't match up on one area, you're bound to in one of the others."
Better yet, said Osborne, these satellites can become your major focus. "And the main campus… well, if you can get some business there, that's just icing on the cake," he added.
When approaching a public college, said Osborne, "Go the traditional route. Go to the buying department and find out what is going up for bid and when." For private schools, he suggests going directly to the endowment office or bookstore.
Ortt offered that success can also be dependent on becoming acquainted with the university and how it operates. He recommends checking in at the purchasing office as well as some of the hot spots—admissions, accounting, etc.—to determine the lay of the land. "Each department will be different from the next," said Ortt. "Each has its own personality."
Bruce Cherrin, director of purchasing and university services at the University of New Mexico, Albuquerque, N.M., advises distributors to introduce themselves to purchasing department heads.
"We have an open campus, and it's to the distributor's advantage to let us know they exist," noted Cherrin. He stressed, however, that getting to the person that actually owns the product is key.
The University of New Mexico is a public school, and Cherrin noted that it's up to the distributor to keep on top of bid announcements, which are published in the local newspaper as well as on the University's Web site. He then explained that there may be three or four different ways to purchase, and all universities do variations of them. "We do have procurement codes," he added, "but how we follow those codes leaves us a variety of ways to do purchasing."
These include bidding specific projects as they are needed, as well as bidding for one- or two-year contracts. "Awarding a bid on an annual basis as opposed to each job is up to the buyer," said Cherrin. "Another option is to take the job to an in-house print shop.
Amy Ruff, a contract manager for Indiana University's Bloomington, Ind., campus, explained that contracts there are typically for three years, and are usually renewable for an additional one to two. She advised distributors to seek out meetings with the appropriate buyer to present their offerings in an informal setting.
"Then it's up to the contract manager to decide who to include in the bid process," said Ruff. "If it's determined that the particular vendor can't meet the needs of the University, they may not be included. We don't have to include everyone, we just have to show that the process was competitive."
By Misty Byers
