Discussion

By Slava Apel on Apr 05, 2009

Web has become an extension of the print shop, not just like an additional sales tool, not like an additional sales person, but more like a storefront. By having retail offerings HP did step on every other print retailer's toe, but all it is a sign of the times where web has compressed the distribution levels, procurement channels and empowered customers to go straight to the perceived source.

What printers can do is what Mr. Carl Gerhardt said - maintain the relationships with the customers, and offer customers similar functionality as HP's Marketsplash.

We will see by the end of 2009 a few more large equipment manufacturers and wholesalers becoming retailers, retailers taken on a trade channel, and more lines being blurred between all other lines of distribution.

By Kurt Katsis on Apr 07, 2009

It is clear that Mr. Gerhardt is out of touch with his own market space. You would have thought the Allegra network would have learned the first time with the Adobe - Kinkos relationship. The Allegra Network is far behind the times and should have developed their own web-templated-site for retail 3 years ago (even then it would have been 3 years to late). The business model for franchises is old and the new tools available today via the web, i.e. web-to-print, 1 to 1 communications, & the abiltiy market your offering anywhere, really nulifies the need for a structure like this.

By Cary Sherburne on Apr 07, 2009

I have to say I must respectfully disagree with Kurt. I am not going to comment specifically on the state of the Allegra network or what they possibly should have done, but in general, the franchises provide a very valuable infrastructure for small businesses who have a difficult time both managing a busy business day to day and keeping up with the rapidly changing technology in our industry. They also provide valuable training and an easy way to network with peers. For a small business that wants to take advantage of the easy availability of this important infrastructure, a franchise network is a good deal. In fact, I have talked to a number of franchisees over the past little while from different networks who have chosen to re-up for just this reason.

By Victor Wiley on Apr 07, 2009

We are feeling just like many of you regarding the move by HP and their MarketSplash web portal offering print to the end users and more importantly how this will negatively effect our print industry.

If you want your voice heard, than follow the link to post your opinion along side the hundred others. We will be forwarding a petition and the postings to HP, so they hear from the industry about our concerns.

Please visit and make your voice heard: http://hpcompeteswithresellers.com

By Michael J on Apr 07, 2009

Consider that Google competes with their resellers in selling Google Apps. That Amazon competes with the members of their affiliate programs. And every web site that has affiliates compete with all of them.

I think this is not a zero sum game. If the Allegra Network or any other of the franchises can negotiate the same deal that Staples has, they probably would. If they get to produce the stuff so much the better. If they don't they'll make their money just like they do on all the other stuff they sell as brokers or what I prefer to think of as VARs.

With all due respect, the idea that there is a "print industry" is a fiction. There are printers, all competing with each other in local, regional markets. The notion of the "voice of the print industry" is a legacy of a value chain way of looking at a networked world.

By Curtis Johnson on Apr 08, 2009

Maybe, HP should have approached this from the other end by developing a HP print provider network first. Every client that has HP commercial equipment could have the opportunity to bid on leads developed by MarketSplash (the HubCast model). MarketSplash could be a transparent network of HP print providers that could drive more pages to HP printers (for HP profit), and a value added service to commercial printers who invest in HP hardware. This sounds more like a win-win arrangement compared the win-lose situation that is alienating commercial printers who bought HP equipment and now are competing with MarketSplash and its privileged arrangements with their selected print providers.

By Michael J on Apr 09, 2009

The thing is that building a network can take quite a while. Ever try to convince a printer to spend time on "there's a lot of work" going to come out of this. I have. it's not pretty. Plus suppose you spent a lot of time on Kodak's failed Creative Network.

What would be very cool would be if HP made it clear what you have to be doing to be a print partner. Just because you've bought an Indigo, or even 10 indigos doesn't mean you are a trusted provider. It's all about price and dependability.

But, if HP publishes Open Standards for being a part of the production network that could be a real win for everyone. HP gathers the work, funnels it to best in class. Everyone competes in a race to the top.

By Slava Apel on May 01, 2009

As recently announced, a bigger threat to the networks came out of Fedex(Kinkos) partnering up with VistaPrint http://tr.im/fedvist

A timely move for Vista, to combat the HP threat.

By Michael J on May 01, 2009

Given Fedex's reach on the ground plus Vista's proven website and 17,000,000 (they say) users plus their delivery logistics this a real play that means HP + Staples will have to respond.

One possiblity is that HP will figure out a way to energize their indigo installed base and make every commercial printshop that has an Indigo give Fedex a real run for their money.

The advantage to HP is that it's been well proven that independent printers and the franchises can beat Fedex/Kinko again and again.
Given the brand problems Vista seems to have, with the brand problems that Kinko's has I think HP can win this one.

Should be fascinating to watch how it plays out.