The New York Times has an article on the success of VistaPrint and their new partnership with OfficeMax:
AMONG Internet businesses, perhaps only one has managed to reach a market value of more than $1 billion by getting customers to hand out millions of promotional messages for it.
The company is not Amazon, eBay or even Google. Rather, it is VistaPrint, a printing company that has strung together 28 profitable quarters by selling — and giving away — business cards. The free cards, of which VistaPrint has distributed 2.5 billion, carry the company’s marketing message on the back.
VistaPrint, a publicly held company based in Bermuda, sells a variety of wares online, from custom-printed rubber stamps, checks and notepads to marketing brochures for small businesses. Now it is stepping into the offline world, too, through a partnership announced this month with OfficeMax.
The article quotes WhatTheyThink.com's Senior Editor Gail Nickel-Kailing who said, "This makes all the sense in the world, [OfficeMax] can take a little bit of profit off the top of each order, and they don’t have to mess with it."
The article goes on to point out that VistaPrint has technology and processes in place that allows them to make money on business cards. A product that does not typically bring in a high profit for most printers. The article does not mention VistaPrint actions to protect its intellectual property through litigation with other printers (WTT coverage here).
VistaPrint has taken a systems engineering approach to print specification and manufacturing, a strategy that allows them to highly automate all aspects of their business. This approach increases efficiency and lowers their operating costs and makes it easier for them to develop strategic partnerships like they have with OfficeMax. Print becomes a plug and play component to the partners' business offering.
For an inside look at VistaPrint, check out WhatTheyThink.com's Inside VistaPrint Limited special report.
Discussion
By Michael Josefowic z on Aug 23, 2007
Vista Print is one example of a printer that has not worried about being a "solutions provider'. Instead they have taken "a systems engineering approach to print specification and manufacturing, a strategy that allows them to highly automate all aspects of their business." In other words, they put ink on paper better, faster and cheaper. Since they are so good at what they do, they bring value to any network connections that appear. There might be some lessons here for print manufacturers who are working at different scales. Be really great at something, then find and engage with networks that need what you are great at.
By John Henry on Aug 23, 2007
The have very nice system and have made some very smart moves to lower costs.
The issue I keep hearing and I have found is they drive nuts with marketing. EVERY single day you get a email and offerings. No matter how good the offer is with in a few days or week Vistaprint becomes spam in mine and others email box.
Some may call it a great marketing system. In my mind it just becomes plain spam.
By Sam I. on Aug 26, 2007
I made a mistake ordering from Vista before. Recently, I actually had to create a filter against Vista to block them from getting into my In-box. Hopefully bad email practices won't influence how Office Max will market the product. Can you imagine OM now sending you reminders about a stamp or a card or some other printed matter that they will sell to you every single day?
Will the business cards still be not in a real business card size? If OM is reading... real business card size in North America is 2" by 3.5" not less. Vista is a horrible partner... just search for BBB and VistaPrint online. Being #1 on BBB worst offenders list does not help OM in the market place.
If OM and VP deal succeeds, I worry for the ripple effect. Bad quality, 3 week turnaround, and smaller size of cards may turn customers away from the business card medium and make them seek some other form of communication. We as printers may not get the repeat business and loose that customer for good.
By John Carroll on Sep 05, 2007
Used a clean email address for VistaPrint. Shortly after that address started receiving not just VistaPrint spam but also the rest of the viagra/porn/whatever spam torrent. Coincidence?