(Read Part 1 of this article here.)

Tariff uncertainty and inflationary pressures are compressing margins that were already razor-thin for those employing cost-plus or market-based pricing, making the transition to value-based pricing not just advantageous but essential for survival.

The profit potential of digital embellishment discussed in Part 1 of this article only tells half the story. The larger question is why digital embellishment adoption isn’t accelerating faster, given reports of superior profitability. While pharmaceutical firms may specify embellished materials because they recognize the importance of tactile elements in supporting product credibility, most brand managers still don’t know when or how to justify specifying embellishment applications, and many are under pressure to do more with less and focus on sustainability which may be seen as at odds with embellishment.

Closing this knowledge gap represents the difference between the success of individual companies and the growth of the category as a whole. Print service providers can stumble upon a niche and master value-based pricing, but they cannot single-handedly educate entire markets about the unique capabilities and value propositions associated with various digital embellishment solutions that appeal to different audiences. That responsibility falls to companies with the resources, market access, and technical expertise to build category awareness, namely the OEMs of the equipment, supplies, software, and consulting services that derive profits from the solutions they provide in the digital embellishment category.