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Friday, April 20, 2007

Demand Aggregators, Commerce Networks, a printers feedback

From: Dave Mainwaring http://www.printplanet.com/
Sent: Thursday, April 19, 2007 5:45 AM
To: Data Driven Printing-Publishing, VDP
Subject: [vdp] Demand Aggregators, Commerce Networks

Listening to the 2007 OnDemand show videos on whattheythink.com I am hearing terminology that is new to me. I can understand EFI's new "Print to Win" tag line. However, others vendors interviews are referring to "Demand Aggregators", "Commerce Networks" as ways for printers to increase sales. What are Demand Aggregators, Commerce Networks and how do they fit into your businesses?

What Do You Think about that?
Asks
Uncle Dave Mainwaring
--
A printer's Reply:
Date: Thu, 19 Apr 2007 10:35:38 -0700
Subject: RE: Demand Aggregators, Commerce Networks

Fundamentally DA's and CN's are e-commerce attempts to make money (in this case) by 'getting in between print buyers and printers.' As such, they "succeed" by ultimately reducing whatever services they e-list to commodities. Think "Priceline" vs. "Hotwire" for hotel rooms. When you think of using these, what are you searching for? Right, lowest price.

And how loyal are you that hotel you once stayed in if they don't have the lowest price next time? Exactly.

Printers interested in serving customers in one-to-one, lasting relationships are generally unimpressed by those actually promoting "commoditization." Aside from fans of dubious IPO's, still fantasizing "mindshare" guarantees profitability, "jargon of the month" doesn't impress. In the case of equipment sellers, it's a means to stimulate sales and leases of their systems/software...by implying they will generate significant business for the equipment one is being encouraged to acquire. Simply having the newest techno-print system doesn't guarantee a lessor's expertise, and savvy print buyers know this...or learn it quickly (the hard way). Those thinking these e-platforms will 'make their sales for them' are in for an unpleasant surprise: what business they may generate is typically going to come from buyers loyal only to the lowest price.

Goes back to a comment I made earlier: these folks (the system manufacturers now also touting DA's & CN's) would do better in the long run (for themselves and the printers they serve) to educate the buying public on the benefits of their technology. If you buy Brand Z...on the proposition they will generate orders for you (Wow - "no cost of sales!"), get a grip. The more equipment they place, the more printers they must list...to the point where being on any given list becomes essentially meaningless. Printers doing well are not foolish enough to rely upon aggregators...but work hard to promote their own companies and capabilities. If something floats over the transom from an aggregator, fine, but it's no kind of "plan" for success in the printing business.

--

From a Posting To: "Data Driven Printing-Publishing,

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