The printing industry faces significant headwinds from current trade policy. Operators are experiencing the impact of a 10% blanket tariff on all imports, plus 34% on Chinese goods and 20% on European imports, as noted by George Mixco from Aleyant. These tariffs affect essential inputs including paper, ink, toner, and equipment spare parts. Trade policy and tariff turbulence are likely to persist for the foreseeable future, but the fundamental economics of value creation remain constant.

However, while many printing companies struggle with rising costs and delayed purchase decisions, some are generating higher profits than ever through digital embellishment and finishing services. Learn how you can too.

Market Data Shows Significant Profitability Gains

Recent research from the 2025 Taktiful/WhatTheyThink Digital Embellishment Study, which is being released this week at Amplify Print, reveals encouraging trends in the embellishment sector. While the findings are directional due to a relatively small sample size, they suggest meaningful market shifts. In 2023, approximately 27% of surveyed printers reported that their embellishment jobs were consistentlymore profitable than regular CMYK work. By 2025, that figure increased to 35%.

More significantly, nearly 80% of these companies report that embellishment work is usually or always more profitable than traditional printing services, and 65% plan to acquire additional embellishment equipment this year, up from 54% two years ago. These investments reflect measurable returns rather than speculative technology adoption.

Directional research like the Taktiful/WhatTheyThink Embellishment Study, with a sample size of 52, plays an important role in identifying market opportunities and establishing context for larger quantitative studies sponsored by multiple brands and OEMs with findings that are projectable to the broader population. (Part 1 of this article is focused on actionable strategies for print service providers to capitalize on opportunities created by tariff and trade policy turbulence. Part 2 of this analysis will address the need for rigorous independent quantitative and qualitative market research and standards integration to support the growth of the digital print embellishment category and expand its profit pool.)

The Economic Logic Behind Value-based Pricing

Economic pressures can create counterintuitive market dynamics. As budgets tighten, consumers become more discriminating in their purchasing decisions. Standard direct mail pieces and basic four-color flyers are quickly discarded, while premium materials with tactile elements like metallic effects and embossing command attention and foster activation.

Similar patterns emerge in business-to-business markets. Marketing budgets contract, but remaining allocations are directed toward measurably effective solutions. Pharmaceutical companies maintain packaging standards that support product credibility. Cannabis brands recognize that customers associate premium packaging with product quality. These dynamics create opportunities where tariff-induced cost increases can be more than offset by premium value-based pricing strategies.

With digital embellishment and finishing capabilities, operators can implement value-based pricing that covers increased material costs while generating superior margins.

High-Value Application Segments

Analysis of digital printing, expanded gamut printing, and embellishment markets over the past two decades reveals specific segments with reduced price sensitivity:

• Embellished business cards and influencer marketing materials represent a growing segment. These clients require frequent updates reflecting changing metrics and achievements. Digital embellishment enables cost-effective small-run production, with clients paying premium prices due to personal brand requirements.
• Embellished cannabis packaging represents a multi-billion-dollar opportunity. Companies in this sector understand that customers correlate premium packaging with product quality perceptions.
• Direct mail embellishment with performance tracking capabilities creates measurable ROI. When companies can quantify engagement, activation, and conversion rates using analytical tools from Claritas, Postalytics, or RockerBox, embellishment transitions from expense to marketing investment. Additionally, USPS provides discounts for embellished mail pieces.
• Embellished Publishing applications remain viable despite digital trends. Physical books with digitally embellished covers command significant premiums when delivering premium brand experiences. This includes coffee table books, educational materials, board games, gaming merchandise, trading cards, and puzzles.

Value-Based Pricing Strategy

Traditional printing operations calculate costs, add margins, and seek buyers at those price points. This approach proves inadequate in current market conditions. Successful operators begin with customer value propositions. An embossed business card functions as a conversation catalyst that facilitates deal closure. Textured packaging creates the initial impression that determines whether customers perceive premium or commodity value. As McKinsey’s seminal research on value-based pricing established: “Customers do not buy solely on low price. They buy according to customer value, that is, the difference between the benefits a company gives customers and the price it charges.”

While value-based pricing benefits from sophisticated pricing software like Pricing Observatory from Reasonable Productor Taktiful’s AI-based Taktify Software for digital print embellishment, it also demands a fundamental mindset transformation. Incremental profit from value-based pricing creates substantially greater bottom-line impact per dollar gained compared to cost-reduction strategies. When demonstrable value is established, price sensitivity decreases significantly. Industry examples show companies charging 3–5 times more for embellished work compared to standard printing, with customers accepting these premiums based on understood value propositions.

Realizing value-based pricing benefits requires organizational change, but print service providers and packaging converters with digital embellishment and finishing capabilities who implement these changes can prosper while competitors struggle. Leading companies compete on results rather than price.

Cost-cutting and automation, while important for operational efficiency, primarily improve performance without altering market dynamics. Value-based pricing strategies that incorporate behavioral economics principles can yield profits with a 3–5x multiplier effect by:

• Attracting higher-value customers with reduced price sensitivity
• Providing resources for innovation and value enhancement
• Building pricing discipline throughout the organization

Optimal strategy combines both approaches: utilizing cost optimization and automation to fund value-enhancing innovations, thereby justifying premium pricing and creating sustained productivity and profit improvement cycles.

Supply Chain Risk Management

Critical supply chain vulnerabilities require close attention that you may not be aware of. “Domestic” suppliers may source materials from China without disclosure. Companies have experienced unexpected cost increases due to unrecognized imported components in foils or specialty papers. Comprehensive supply chain mapping extends beyond direct suppliers to include circuit boards, rollers, and inkjet components subject to tariff impacts.

Comprehensive supply chain audits provide value beyond tariff cost management. These assessments identify supply chain risks affecting product availability, logistics costs, shipping delays, and opportunities to reconfigure sourcing toward domestic suppliers where feasible and lower-risk alternatives where necessary. The good news is that current trade policy is accelerating domestic sourcing trends. Where domestic alternatives are available initial costs may be higher, but domestic suppliers are likely to offer more predictable pricing and faster delivery times.

Speed as Competitive Advantage

Time-sensitive delivery commands premium pricing. Customers requiring foil-stamped invitations within 24 hours or embossed packaging in two days will pay premium rates for guaranteed delivery. Automation investments provide benefits beyond labor cost reduction and productivity. The ability to accept and fill urgent orders when competitors cannot creates significant competitive advantages. UPS research demonstrates that 1–2 day shipping options increase sales conversions by 52%. Speed often outweighs price considerations in customer decision-making.

Market Positioning Opportunity

The digital embellishment category occupies a market position similar to that of the digital printing category two decades ago. The technology is emerging, and the category is experiencing rapid growth with limited market understanding. This creates significant opportunities for early adopters who will likely dominate this market segment for the next decade if they collectively invest in growing awareness, availability, and consideration of the category. While competitors focus on commodity printing and analog embellishing or finishing work, print service providers with digital embellishment and finishing capabilities can establish differentiated market positioning, brand awareness, and market share leadership with superior margins.

Success requires more than equipment acquisition. Print service providers must understand embellishment technology capabilities, maintain supply chain oversight, train sales teams in value-based selling, identify customers who value digital embellishment benefits, and collaborate with OEMs and associations in market education, market research, and advocacy initiatives.

See and Feel It for Yourself

While industry participants express concern about tariff impacts, substantial opportunities exist for operators willing to implement strategic changes and embrace innovation. Digital embellishment extends beyond aesthetic enhancement to position companies in markets where customers actively seek premium-priced solutions. This positioning offers superior alternatives to competing on commodity pricing for basic printing services.

Above all it is essential to experience digital embellishment in person. Watching YouTube videos, reading articles, Googling topics, or using a LLM chat tools to explore the category can be helpful, but understanding the practical possibilities of digital embellishment and finishing requires direct exposure to digital embellishment applications.

The Amplify Print 2025 Conference and Exhibition taking place in Rosemont, Ill., from June 10–12 provides exactly that opportunity for brand owners, designers, and print service providers to see and feel applications first-hand, and meet the subject matter experts and pioneers of embellishment who can demonstrate the value of what’s possible.

Chicago-area attendees can access the event without charge using code AMPLIFY25COMP.

Part 2 of this article will examine strategies for OEMs and brands to support growth of the digital embellishment category and expansion of the profit poolavailable to brands and print service providers.