Make a name for yourself

Growth’, ‘diversification’, and ‘expansion’ have been major buzzwords in the sign industry for quite some time now, with such terms at the very front of decision-makers’ minds as they look for ways to win new business.

One area mentioned as a market where the more traditional companies can grow and expand is trade supply, where a whole array of work awaits those who dare to venture into this sector. However, the move may not be straightforward as first thought, with companies required to fully research the market and establish if it is right for them.

Here, we speak to several companies already active in this area, as well as the suppliers, manufacturers, and trade bodies that work with trade-focused operations, to see if this move is a realistic one and what sort of factors should be considered.

Versatile and durable

One company heavily involved in trade work is Complete CNC Solutions, which supplies CNC routing and cutting systems to operations in the sign and display market. Julian Sage, managing director, speaks with cautious optimism about the potential for success in this market, saying trade work can be “very attractive”.

“You could look at it through very cynical eyes and take the view that you’re not making all the profit that’s available,” Sage says, adding: “That said, if they were selling customers in a shop on the high street, you’d probably want to buy some and that would cost you margin too.

“I take the view that, if you’ve a capability of producing what others can’t, that work will gravitate to you from the trade and that it can be very lucrative. It’s worth bearing in mind that although you might see a numerically smaller return on the job, specialisation does help prices hold up. Then, consider the on-costs too.

“Work may very well find you, you won’t perhaps, have to install what you make, so your real costs are arguably lower as well. Trade work can be very attractive.

“A capable supplier to the trade needs hardware that’s versatile, durable and very productive. Indifferent quality, missed deadlines and having to turn work away will very quickly send trade buyers, and end-users for that matter, off into the arms of a competitor who can deliver.”

With this, Sage leads on to some of the machinery available from Complete CNC Solutions that could support companies opting to make the move. In particular, Sage highlights the Protek Unico TT, which he bills as an “amazing machine” that can help to produce a wide range of work.



“It does everything and more that lightweight flatbed digital cutters do, but the very same machine can run rings around most heavy production routers too,” Sage explains, adding: “That machine can do anything that comes the way of a trade supplier. That’s what keeps trade customers happy, happy to pay, and happy to keep coming back for more.

“We can give anyone who visits a tour of Tekcel systems too. We have lots of customers who are trade supplies who use our Tekcel systems. Many have more than one in fact.”

Offer something different

Also keen to offer advise as to what markets to expand into is Hybrid Services, the exclusive distributor of Mimaki kit in the UK and Ireland. John de la Roche, national sales manager signs and graphics, says that setting up a trade division can help generate more revenue for a company, highlighting the need to invest in quality technology to ensure a smooth transition into such work.

De la Roche comments: “Setting up a trade work arm to your wide-format printing business is an ideal way to increase revenue through an additional income stream and also ensure you get the most out of your hardware investment by making sure it never sits still. Super-fast printers, such as the Mimaki JV300 series, are capable of producing high quality output at very fast speeds, so can provide add-on productivity to smaller printing companies who are struggling to meet a deadline.

“Trade printing particularly lends itself to those print companies that specialise in a niche area or have specialist machines that can provide something over and above run-of-the-mill sign and graphics output. A great example of this hardware is the Mimaki UJV55-320; a 3.2m roll fed UV printer that makes light work of textile printing for exhibition and retail graphics, especially backlit applications that require high quality and vivid colour prints.”



De la Roche goes on to pick out some of the more specific features of Mimaki kit that could be of benefit to companies looking to take on trade work: “Popular features with Mimaki’s sign and graphics printers and printer cutters include a Nozzle Recovery Function and the capacity to run a bulk ink system, which allows for long runs of unattended printing, so you can make use of your printer through the night without having to dedicate a member of staff to a night shift.

O Factoid: The Mimaki UJV55-320 can operate at speeds of up to 110sq m/h on materials as wide as 3.2m. O

“Once you’ve tested the water and built up a client base for trade work you can then look to invest in more dedicated hardware for the trade side of your operation. You can do very well if you have something that gives you a point of difference, whether this be speed and productivity, the capacity to take on longer runs or being able to provide large- and grand-format prints.”

Get to know your customers
 
Taking a more neutral standpoint on the debate is the British Signs and Graphics Association (BSGA), which advises companies on what might be the best move for their business. Director David Catanach says that while the trade body can offer expert insight into the sector, it is ultimately down to the individual firm as to what they choose to do.



Catanach expands: “It is something only the individual can decide as there are many outside and personal factors to consider, but being an established trade supplier that meets their customers’ needs, produces quality products on time and at reasonable prices is not a bad way of doing business.

“Consider how you are going to pitch your services to sign companies who may well be your intended customer but they will see you as their competitor. A common comment from the trade is that they do not like dealing with companies for products when that supplier to the sign company can go direct to their customer.

“Unless you have a unique service or product that cannot be procured elsewhere, understand that not everyone is going to want to do business with you if you service both trade and the end-user, which will limit your scope and may damage your reputation. Being set up solely as a trade supplier eliminates any such issues and potential causes of conflict.”

Catanach continues: “In supplying only the sign trade, your potential market is not as diverse as it would be if you were a sign company yourself and selling signs and print to anyone. But there are still many potential customers and it is however akin to having free salesmen out there, just that you have no control on their performance and needs.


“You must also be prepared to have a very tight and secure process to sign off exactly what it is you are making, you must manufacture faultless products and have them delivered undamaged as the slightest scratch, blemish, specification deviancy will be thrown back at you as your customer is more than likely unwilling to accept any responsibility or less than perfect product.

“One of the best ways to conduct business as a trade supplier is to get to know your customers on the personal level, whenever you can and not just fulfil orders they send to you. This business model is the way most successful trade suppliers operate and continue to succeed in business.”

Be careful what you wish for

However, on the other side of the debate, Graeme Hoole, production manager at The Sign Group, a highly-regarded operation in the sign trade market, suggests that this type of work is not for everyone, criticising those that take on trade work when not fully equipped to properly do so.

Hoole comments: “There are ‘trade’ suppliers out there who sell to ‘trade’, but that’s different to supplying to the sign trade only. A ‘trade’ customer is basically any business or company—or alternatively anybody—whereas a sign trade supplier will only sell to sign companies, shop-fitting agencies, designers, and similar operations.



“There are ‘trade’ suppliers that fall fowl of the distinction above, and I am passionate about how wrong that is.

I’m not saying these companies are not supplying to the sign trade only, but they should make more of a thing about advertising this. Having a title or being a ‘trade only supplier’ is misleading and vague, that’s why we always push ‘sign trade supplier’ only.”

Hoole goes on to say those companies that do not class themselves correctly are doing themselves no favours and damaging their reputation in the wider market. He explains: “In sign circles, trade suppliers that also sell to the end-user are unanimously disliked by both sign companies and sign trade suppliers. It smacks of ‘having your cake and eating it’ and isn’t good practice.”

From speaking to those companies and organisations quoted here, it seems that there are two, clear sides to the debate. On the one hand, the trade market is somewhere that you can undoubtedly make a name for yourself and win new business, if you are properly equipped with technology and knowledge. But be warned; the move may not be for everyone and could actually damage your reputation if you take on this type of work without having a working knowledge of how to produce it.


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