Increase Your Profit Margins and Grow Your Business: Key Takeaways for Print Service Providers
As the print and mail industry continues to thrive, Print Service Providers (PSPs) are uniquely positioned to capitalize on untapped opportunities for growth and profitability. Quadient's recent webinar, Increase Your Profit Margins and Grow Your Business, outlined actionable strategies to help PSPs thrive in a competitive market. Below, we summarize the key insights from this valuable session.
Seize hidden opportunities with FREE USPS resources
One of the simplest ways PSPs can grow their business is by leveraging underutilized resources offered by the United States Postal Service (USPS). Many providers focus solely on work-share discounts, missing out on free, high-impact tools.
Free online directories for Direct Mailers connect local businesses to registered PSPs. Surprisingly, many providers have yet to register or maintain their profiles, missing an opportunity to attract new clients at zero acquisition cost.
USPS offers seasonal promotions and Incentives that offer discounts for certain types mailpieces featuring metallic inks, textured paper, or interactive elements. These enhancements improve client conversion rates while providing up to 6.5% postage savings, creating a win-win scenario. By incorporating these resources into their offerings, PSPs can differentiate themselves as trusted partners in driving client success.
Tap into high-value mail
While most PSPs focus on promotional mail, high-value mail remains an underserved segment with tremendous profit potential. High-value mail includes transactional and notification mail containing regulated, non-public consumer information such as Protected Health Information (PHI) or financial data. Industries like healthcare, financial services, insurance, and law firms are legally required to send such communications through the mail.
Key characteristics of high-value mail:
Recurring Revenue: High-value mail is sent regularly, creating opportunities for long-term contracts and predictable income streams.
Higher Margins: Each mailpiece can generate a gross profit margin of 30 cents or more—far exceeding the 7-cent margin typical for promotional mail.
The barriers to entry—certifications and specialized technology—have traditionally kept smaller PSPs out of this market. However, solutions like pre-configured packages and credential-sharing programs now make it easier to break into this lucrative segment.
Modernize Your Operations with Advanced Technology
Scaling up to meet growing demand often leads PSPs to hire additional staff, increasing labor costs and squeezing profit margins. Advanced automation technology provides a smarter alternative by shifting from a high-labor, low-productivity model to a low-labor, high-productivity one. Benefits include:
Labor Savings: Reduce staffing needs by 50–75% while maintaining or increasing output.
Flatlining Costs: Fixed costs replace variable expenses, allowing profit margins to grow alongside volume.
Enhanced Flexibility: Modern technology supports quick job changeovers, enabling PSPs to take on diverse projects.
With cutting-edge technology from providers like Quadient, PSPs can restore and grow their profit margins while positioning themselves for scalable, sustainable success.
Focus on "Protect, Grow, and Acquire"
The webinar emphasizes a threefold approach to business growth:
Protect: Retain your existing book of business by ensuring client satisfaction and reliability.
Grow: Upsell and cross-sell services, such as high-value mail solutions, to current clients.
Acquire: Tap into new markets and customers by leveraging USPS tools and showcasing your expertise.
By aligning operations with these principles, PSPs can maximize revenue potential while strengthening client relationships.
Take the next step
This is a pivotal moment for PSPs to go beyond traditional promotional mail and explore opportunities in high-value mail, automation, and USPS partnerships. By implementing the strategies discussed in the webinar, PSPs can:
- Differentiate themselves in a competitive market
- Increase profitability and operational efficiency
- Build long-term revenue streams with high-value clients
If you missed the webinar or want to learn more, watch on demand reach out to experts, who can provide personalized guidance and resources tailored to your business. With the right strategies and tools, the future of print and mail services is bright—and filled with opportunity.
