Print and signage businesses can see plenty of opportunity in the current digitally-focused marketplace, as Domini Stuart reports
The print and signage businesses are both about communication – and they have both been changing fast. For print, there was a major shift was around five years ago when big, offset printers were replaced by digital alternatives. Suddenly, business owners had no need for a dedicated operator and, as digital machines are also much neater and cleaner, their outlets took on the look and feel of service centres rather than manufacturing plants.
Meanwhile, in both sectors, the digital revolution has been opening the door to methods of communication that, just a decade or so ago, would have sounded like science fiction. As a result, there are new and exciting opportunities to prosper for anyone willing to work with the changes.
The changing face of print
“There’s no question that this is shrinking as readers and advertisers move part of their spend into digital forms of communication – but it’s shrinking slowly and from a very large base,” says David Bell, chief executive officer of Kwik Kopy Australia. “Today, the business is as much about software and problem solving as producing printed materials and we have responded by broadening the range of services we offer from print to print and digital.”
For some time, Kwik Kopy has been actively enabling its owners to offer web-based solutions. Website development was the first cab off the rank and quite a few franchise owners are now offering web design. The next growth areas will be mobile and social media.
“As competition for the print dollar intensifies, the franchisees most likely to succeed are those who understand what they’re actually selling, which is communication,” says Bell. “We produce materials for one of two reasons – the first is for internal communication, the second is for external or marketing communication. If you understand that, and you also understand each particular clients’ market place and how they want to allocate their dollars then you can adjust your range of products and services to meet their changing demands. If you’re also offering a broader range of services, you’re in clover because they can come to you for all their digital communications as well as their print work.”
Even franchisees who choose to focus on maintaining or growing their share of the traditional print market now need to move away from the traditional reactive model.
“Customers used to visit a shop, drop off whatever they wanted to have printed or copied, then collect the finished product,” says Bell. “There’s still a huge demand for those kinds of services but, unless you’re interacting with your customers, you could find yourself in a situation where someone who has been coming to you twice a month for the past five years suddenly disappears and you have no idea why. That means you’re missing out on an opportunity to meet their needs in a different way.”
Some franchisees are so focused on customer relationships that they have abandoned the physical shop front. A street presence is effectively a billboard for the brand – however, if you’re communicating with clients effectively by phone and email and you’re visiting their offices for face-to-face meetings, good signage on the first or second floor of a building could provide all the exposure you need.
“Wherever you’re based, if you wholeheartedly embrace the strategy of talking to your customers about their business, thinking about their business and then offering them solutions and ideas I don’t think there’s any doubt that you will do well. As a franchise we have consistently outperformed the market – for instance, while the market has been declining the past four or five years we have effectively gained market share and some of our franchise owners are going gangbusters in terms of growth.”
The ideal franchisee
Kwik Kopy has always sought out franchisees who are inquisitive, interested in the way other people to business and tuned in to finding better ways of meeting their clients’ needs. Nowadays, they are also looking for people who are comfortable in the digital space.
“We’re tending to attract a younger demographic – people who have grown up with social media, can find their way around a website with their eyes closed and are familiar with all the tools,” says Bell. “They love the idea of making a living in that area – the model is changing in line with people’s skills, abilities and interests.”
Some of the owners who have been in the system for many years are keen to learn this new set of skills. In this case, Kwik Kopy will provide as much training as they need. Those who are less than comfortable with the changes are encouraged to employ someone who is.
“One of our owners employed a young person who has now acquired some equity in the business and, when the time is right, will buy out the franchise,” says Bell. “It’s a win-win situation – an effective mix of old and new skills and also a neat succession plan.”
New franchisees spend four weeks at head office learning the A-Z of running a Kwik Kopy business – everything from marketing, sales, production and pricing to managing staff
“We have 24 people at head office, which is a ratio of about one support person to four franchisees,” says Bell. “The support team works on a needs basis and our size gives us the flexibility to give concentrated support to the people who are starting out.”
The cost of a franchise varies according to the size and type of centre. As Kwik Kopy is such a long-standing system, about 10 per cent of its franchises are available for resale at any time as their owners retire. Alternatively, a new owner can decide to start a Kwik Kopy from scratch.
“A few years ago we had someone who moved to Gosford and decided to open a business there,” says Bell. “Another did the same on the Sunshine Coast. These were lifestyle choices – starting a new business enabled them to live where they want.”
The franchise fee is roughly $40,000. A small business might cost an additional $150,000, a big business turning over a million dollars would cost significantly more.
“It’s hard to put a dollar value on it but the important thing is that our franchisees have a wide choice of ways to get into what will continue to be a vibrant and dynamic sector,” says Bell.
Pointing the way to a successful future
These days, signs are about a lot more than giving directions. Like print, it can incorporate communication in its broadest form of communication – for example, Signwave describes it as a powerful and immediate form of communication that can be used to build a brand, market a product or service or announce an event.
Signs can be printed, lighted or even interactive, and Signwave covers the full spectrum of signage solution. Digital signage is dynamic – it allows businesses to communicate constantly-changing information, updated news and the latest offers in a way that will catch and hold their customers’ attention. Signwave has been operating in the digital signage space for many years and, as the opportunities within the sector continue to increase, it is well placed to cope with changing demand.
“Virtually every business uses signs and graphics to sell, inform and direct,” says Andrew Mckay, general manager of Fastsigns International which runs the Signwave business in Australia,. “This means that every business is a potential customer for Signwave and advances in technology will only continue to expand the market.”
The franchise also offers a wide range of complementary products and services – everything from floor and vehicle graphics, architectural and interior dcor signs and labels to promotional products and wearables – and has recently introduced a new branding platform to communicate the fact.
“We chose SIGNWAVE: So Much More Than Signs.t because we want people to know that we provide a wide variety of products, services and comprehensive visual communications solutions to help businesses raise their visibility, reach more customers and tell their story,” say McKay.
Currently, Signwave has more than 530 locations worldwide with 20 of those in Australia. “Ours is proven, international model which is locally managed,” continues McKay. “The support we provide has been tailored to the Australian market. We provide all the help that’s needed in terms of day-to-day operations as well as vital intelligence via a sophisticated system of reporting.”
New franchisees can choose a start-up franchise for an overall cost of around $210,000 or to convert an existing print or sign business for a much lower cost.
Like Kwik Kopy, Signwave looks for enthusiastic and motivated franchisees who enjoy interacting with people and embrace every opportunity to provide solutions for other businesses.
“This hasn’t changed over the past five years – we have always seen the value in building relationships,” says Mckay. “The only thing that has changed significantly in terms of our franchisee recruitment is the age demographic. As with print, we’re getting much younger people showing an interest now than when the business started out.”