Stay Connected with Integrated Products

Laser printing and direct mail redefine the market

"INTEGRATED PRODUCTS are critical to the forms industry," noted Tom Yeager, vice president of sales and marketing at Batavia, Illinois-based Strata-Tac, a supplier of pressure-sensitive films and laminates for integrated labels, cards, coupons and magnets. "The products allow forms presses to go beyond traditional business forms, and open up new markets for manufacturers and distributors."

Yeager added that with the popularity of laser printers, integrated products have become the new "it" in the industry. "Laser printers are so widely used that distributors can't help but to create products that can incorporate laser images—namely integrated products," he said. "Companies that want to keep ID card programs in-house will find that integrated products are easy to design around their print needs."

According to Andy Harnett, president of New Jersey Business Forms, Englewood, N.J., there are several uses for integrated products, particularly in direct mail. "Combining high-color with integrated labels and cards offers something new for direct mail," he said.

Harnett added that combining an integrated card or label with a self-seal mailer is another unique use for the products. "Our InfoSeal division's Pressure Seal Plus offers integrated cards and labels within a pressure-seal self mailer," he explained.

According to Yeager, there has been an increase in the use of integrated products in promotional printing. "Traditional applications, such as shipping labels and ID cards are growing, but promotional printing is where more creative products can be found," he said. He also noted that security applications with holograms for ID cards and parking passes have new potential.

As for market trends, Harnett said that within recent years, manufacturers have been creating trademark names for their products. "It is important for distributors to see past the marketing strategies and realize that the basic materials and construction of the products are still the same," he observed.

Integrated RFID

Although radio frequency identification (RFID) technology is being incorporated into many products, Yeager said that there has been no significant impact on the integrated products market. "Most of the technology for RFID now allows the printer to write the chip directly inside of the label as it is being printed," he explained. "While Strata-Tac can supply an RFID laminate, it is not feasible for most applications to write to the chip when it is in its integrated state.

Nuts and Bolts

While Harnett and Yeager said that there have not been significant improvements to the equipment that produces integrated products, there have been changes. "Some examples include in-line installations that print and create an integrated label simultaneously, modular installations that can laser image documents inline, installations that can handle sheets instead of web printing and installations tied in with collators for further processing," Yeager explained.

Harnett said that New Jersey Business Forms has installed a Muller Martini forms/commercial web printer, which allows the company to produce high-color printing on integrated card and label products for direct mail. He also said that of its products, including all types of integrated labels and cards, New Jersey Business Forms generates the most sales from cut-sheet integrated products. "We see more new integrated card work than new integrated label work," he said. "We have fine-tuned our manufacturing methods and have implemented high-speed capabilities to handle any volume."

Yeager stressed that integrated products are ideal for markets that involve laser printing, including distribution facilities, insurance companies and the direct mail industry. "People in these markets are usually interested in having ID cards or form/label combinations that help streamline their processes," he explained. "Issues ranging from lasering and inserting, to color matching between forms and cards, can be solved using integrated products."

Harnett agreed. "It has taken some time, but integrated cards are now more widely accepted as ID card solutions," he said. "For integrated labels, distribution and warehousing has always been an area of concentration."

Selling Points

According to Harnett, there is no question that integrated products add value to traditional forms programs. But, how profitable is it to sell integrated products? Very, according to Yeager. "An integrated product can be the most profitable product a distributor sells," he stated. "If the distributor can help streamline a process for an end-user, then a nice margin can be justified." Integrated products can also yield a high ratio of repeat orders. "Creating an integrated product involves a more detailed process, so customers tend to be more loyal," explained Harnett.

The manufacturing of integrated products does come with its own challenges. "The biggest challenge that we face is educating distributors," Yeager said. He added that distributors who fully understand integrated products tend to sell a a high number of them. "We offer educational sessions, maintain an extensive library of free sample packets and have included selling tips on our Web site," he noted.

To help distributors experience and/or maintain profitable margins, both Harnett and Yeager offered some advice. Harnett encouraged distributors to first look for opportunities that involve existing applications and that they must gather information about their clients' document and product flow applications.

Harnett also said that when distributors are sourcing integrated products, they should choose experienced manufacturers. "The products are still diffuclt to manufacture," he said. "Ask whether the manufacturer prints and converts at the same facility, since it is not prudent to print and convert at different locations."

Yeager offered two suggestions. "Distributors should first look for ways to combine form and label printing into a form/label combination," he said. "If the customer produces both forms and labels, or forms and ID cards, then an integrated product may fill the need." He also said that distributors should concentrate on their customers' marketing strategies. "Clients are interested in using more color and adding value to a printed piece," he explained.

Looking ahead, Harnett said that integrated products will remain a strong part of his company's product mix. "We look forward to creating new applications based on our high-color capability and our unique self-mailer formats under the InfoSeal brand," he said.

Like Harnett, Yeager predicts growth. "The use of laser printers, an improving economy and the addition of new products will all contribute to our continued success."

By Cynthia T. Graham