They say that in difficult times, people pull together to make the best of a bad situation. It’s an adage print manufacturers seem to have taken to heart. Where once rivalry was as fierce as any local football derby, with battle lines drawn in the aisles of print shows, now the difficult trading conditions seem to have prompted something of a love-in.

Be it Manroland selling Océ kit, Heidelberg hooking up with Ricoh or Renz, Duplo and Friedheim bonding over a binding line, the spirit of companionship is prevailing across the board. Such tie-ups are clearly beneficial for the manufacturers, with Duplo claiming these matrimonies have generated nearly £2m worth of sales in the past 18 months, but less clear is how the partnerships benefit the printer. The biggest risk to printers is that manufacturers, when asked to recommend ancillary kit, will start to push partner machines that will net them a cut of the sale price, rather than the best machine for the job.

Built on trust
These partnerships seem to come in all shapes and sizes. Some may be global agreements, others are UK-only contracts, and then there are those that are not contracted, but rely on trust built up over a period of time.

Peter Jolly, marketing manager at Duplo International, says that regardless of which of the above Duplo engages in (and it dabbles in all three) the basis is the same.

"To us, a partnership involves a product in our direct sales range being sold along with other vendor products, or where a lead is given to us that then enables us to sell directly," he explains.

He claims that the aim of these tie-ups is to benefit customers, not necessarily manufacturers. He points to the Finishing Alliance as a prime example. Set up in 2009, this pulls together Friedheim, Renz and Duplo to, according to Jolly, make machine purchasing smoother and more convenient for customers.

The product ranges between the three companies have "great synergy", so working together was a logical step, explains Neil Elliott, UK marketing manager at Friedheim International.

"Duplo is very much at the smaller end of the finishing market, we are more medium to large-format, while Renz machines complement both our kit," he says. "So, if a customer talks to a Friedheim salesman and it turns out one of our machines isn’t suitable for their needs, we are able to suggest that a Duplo machine may be what they’re after instead."

Having these products available from a single source simplifies the buying process, he says. Jolly adds that printers are extremely busy people, so if they can give full requirements to a supplier once, and then that supplier goes away and works with other partners to find the solution, "that is the best use of everyone’s time".

Customer in control
The cynical reader may point to the flaw in this argument – the solution is likely to be the one most advantageous to the manufacturer rather than the printer, meaning the product chosen will be one from the manufacturer’s partner not necessarily the one best suited to that client.  

Jolly stresses that this is not the case. He points to the fact that the customer is always in control of what they buy and he believes a good supplier will help customers find alternative choices if needed.

Tony Hards, joint managing director at rival supplier Intelligent Finishing Systems, agrees and adds that a customer opting for a non-recommended solution can be beneficial to the manufacturer, as the reasons for that decision can be channelled back to ensure the manufacturer can tailor product development to better fit the requirement next time. 

"These demands often lead to new interfaces and software being developed, which in turn enhances our own product offering," he explains.

Hards believes the growing number of alliances are, in the main, a way of giving printers more opportunities to see meaningful solutions working together in a production environment – and along with Duplo’s Jolly, believes that one of the key benefits of partnerships is the fact that integration between the partner products can be proven as it is a tried and tested relationship that is being sold.

And partnerships are not exclusive to the finishing sector. Visitors to Northprint in May would have witnessed Manroland sharing its stand with digital counterpart Océ, while Heidelberg’s digital partner of choice was recently revealed as Ricoh.
In both instances the aim is to facilitate the shift of litho printers into the digital market. Manroland is now selling Océ’s JetStream and ColorStream range of presses. Manroland GB director of web sales John Ellis refutes any suggestion that such a strategy might put undue pressure on customers to opt for an Océ press.

"I think our customers are pretty savvy," he explains. "We know they talk to our competitors as well, so I don’t think pressure really comes into it. The majority of graphic arts print companies have been looking at digital for some time, and so are quite well educated in digital technology."

Heidelberg meanwhile has signed a deal to sell the Ricoh Pro C901 Graphic Arts Edition high-volume colour press, with its first one sold in the UK to Alltrade Printers in May (see box). It also has arrangements with Technotrans, IST, Tharstern and Red Tie. Heidelberg UK marketing director Mark Hogan stresses, however, that most of its partnerships are "preferred" not exclusive, and so printers are never limited for choice by Heidelberg. 

"Our partnerships don’t preclude printers going to other suppliers or any other manufacturer," says Hogan. "Take MIS for example – having Red Tie and Tharstern as preferred suppliers means we can bundle and finance products within a bigger portfolio, but we are still in a position to deal with all the other MIS suppliers, so customer choice is not limited by any means."

Best interests
As far as the purchasing side of things goes, then, the manufacturers argue that the customer still has choice and that any recommendations are in their best interests. They claim that after-sales is similarly geared to putting the client first.
Xerox, for example, under its Business Innovation Partner programme, has a relatively complex series of silver, gold and platinum partners, but Mark Boyt, Smart centre and solutions manager for Xerox Europe, says that Xerox has built-in rights to protect customers should a tie-up cease at any point.

Other manufacturers are equally adamant that, should agreements end, the customer will not be adversely affected. The three companies in the Finishing Alliance, for example, each retain service and support for their own machines, so should the Alliance end, existing customers shouldn’t notice any impact.

Based on current trends, however, the likelihood is that there will be far more manufacturers forging, rather than breaking, partnerships in the coming months. Manroland’s Ellis says there has been plenty of speculation regarding manufacturers and suppliers partnering up for a number of years, but the recession helped turn that talk into reality. Given the current state of the economy and the print market in general, he feels more such agreements are inevitable.

He adds the caveat that it may well be manufacturers that need to worry more about partnerships than printers. For the latter, the benefits are free product advice and compatibility with no obligation. For the manufacturers, however, there is the risk that spreading into new areas means the core offering is neglected. Printers, then, should perhaps take advantage of this growing love-in while it lasts.

CASE STUDY ALLTRADE PRINTERS
When Birmingham-based Alltrade Printers became the first to buy a Ricoh press from Heidelberg, it did so with every confidence that the German manufacturer would make a success of its move into digital.

"We welcomed news that Heidelberg was entering the digital market because it has been a trusted and reliable partner to us for many years," explains Alltrade finance director Dilu Mukadam. "It understands the commercial printing market and our specific needs."

From its 2,788sqm Heartlands facility, Alltrade produces calendars, brochures, catalogues and folders on its two Heidelberg Speedmasters. Entering the digital market was seen as a necessity to capitalise on the growing demand for bespoke calendars. "We looked extensively at the market before indentifying that the Ricoh Pro C901 had the right quality for our needs," says Mukadam.

According to Mukadam, Heidelberg has ensured that the Creo front-end is fingerprinted so that the output from the machine matches Alltrade’s "exacting" colour standards. "We need to be able to sell confidently alongside our two Speedmasters," he says. "Digital will never replace litho, but digital quality has improved and people outside the trade would find it difficult to recognise the difference between the printed results."

As the Alltrade purchase demonstrates, the Ricoh tie-up is all about offering Heidelberg’s existing customer base added value, claims Karen Lawrence, professional print solutions marketing manager at Ricoh UK. "By working with us, Heidelberg has given its customers the confidence to start looking at the digital arena," she says. "We are two very financially secure companies working together for the benefit of customers."