Increase Your Profit Margins and Grow Your Business: Key Takeaways for Print Service Providers

As the print and mail industry continues to evolve, Print Service Providers (PSPs) are challenged heir business capitalize on untapped opportunities for growth and profitability. Think about how much is changing in the mailing industry, the industries that print service providers support, whether it's direct operations or indirect, third-party clients.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 uncover a few 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.

Resources such as 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 postage discounts for certain types mail pieces that utilize special inks, paper stock or interactive elements. These enhancements improve client conversion rates while providing PSPs with postage savings, creating a win-win scenario. By recommending them to customers as a way to potentially boost response rates, PSPs can differentiate themselves as innovative and trusted partners in driving client success.

Tap into new revenue streams

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.

The barriers to entry—certifications and specialized technology—have traditionally kept smaller PSPs out of this market.  However with the right partner, pre-configured packages and credential-sharing programs can make it easier to break into this lucrative segment.

With cutting-edge technology from providers like Quadient, PSPs can restore and grow their profit margins while positioning themselves for scalable, sustainable success.

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 conservatively 30 cents or more—far exceeding the 7-cent margin typical for promotional mail
   

Modernize operations and reduce operating expenses

Many PSPs are challenged by post-COVID growth with pre-COVID assets. 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.

We had a customer who had 21 people working 10-hour shifts a day, and they were able to get the same productivity out of two people working eight-hour shifts.

Invest in technology that automates this process and creates a fixed expense. As volume grows, the fixed expense stays flat-lined, and your profit margins increase as your volume ascends.

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. Learn about our three-fold approach to success.  By aligning operations with these principles, PSPs can maximize revenue potential while strengthening client relationships.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 now. Feel free to reach out to experts, who can help you identify ways you can boost your business, personalized guidance and resources tailored to you. With the right strategies and tools, the future of print and mail services is bright—and filled with possibilities.