Vistaprint Launches Promobox, Customized Promo Products for Businesses

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Subscription News: Vistaprint Launches Promobox

Source: Vistaprint

Online printing and promo company Vistaprint has launched its own subscription box for small businesses – Promobox, a monthly box of customized products with your company logo on them. For $24.99 a month, businesses will get a selection of three to five products custom designed for them, including postcards, embroidered polo shirts, tote bags, mugs, pens, rack cards, smartphone cases, t-shirts, note cards, banners, flyers, pre-inked stamps, window decals and more.

In this introductory video, business owner Tonya Girouard of Arrange This Travel describes her first unboxing experience, comparing it to opening gifts on Christmas Day.


Promobox is currently in beta testing, and Vistaprint is offering a promotion – prospects can order their first Promobox for just $5.

 Customized Promo Products for Businesses

Source: Vistaprint

Customers start by filling out a questionnaire with basic contact information and information about their business, including name, slogan, products and services offered, and promotions offered. Customers can then upload their logo or other desired image and choose a style from a brief list. They then fill out credit card info. and are advised they can cancel their subscription at any time through the Vistaprint dashboard or by calling a toll free number. There is no long-term commitment.

Vistaprint is one of more than 20 brands owned by Cimpress N.V. (NASDAQ: CMPR). Cimpress owns other brands in the U.S. and abroad, including Pixartprinting, Exaprint and National Pen Company, that also produce mass customization like Vistaprint. In its July 26 earnings statement, Cimpress said it produces more than 46 million unique ordered items per year.

Cimpress recently restructured the company and said it hopes Vistaprint will benefit from that.

“As described throughout the year, we continue to see pressure on Vistaprint’s gross profit from shipping price reductions and the rapid expansion of product selection and design services as we have prioritized launching and learning about demand levels ahead of in-year profits. We often note that we are not targeting absolute gross margin or even contribution margin increases; we seek to maximize our cash flows over long periods of time. With that said, the Vistaprint business sees opportunities to optimize costs and pricing starting in the upcoming year as we scale these offerings and realize the operational benefits of our recent reorganization,” said Sean Quinn, CFO for Cimpress, in the earnings release.

For the quarter ended June 30, 2017, Vistaprint earned revenue of $319.2 million, compared to $305.0 million for the same period in 2016. Vistaprint’s revenue represents 56.5 percent of Cimpress’s total revenue for the quarter of $564.3 million.

Subscription News: Vistaprint Launches Promobox

Source: Vistaprint

Insider Take:

As entrepreneurs ourselves, we love this idea! Vistaprint already supports small businesses by making mass customization easy, and it is taking this concept one step further by creating samples for business owners to view before making the commitment to buy mass quantities. This is an easy way for Vistaprint to get its product into the hands of business owners who don’t have the time, skills, or perhaps the money to create products on their own. By asking a few simple questions and providing a logo and slogan up front, a business owner can make a small financial commitment to see how their company logo would look on other promo items they might not have otherwise considered.

From the company perspective, Vistaprint already has thousands, perhaps millions, of customers so it has a built-in audience to solicit this new idea. The company will lose money at $5 for the first month for prospective customers, but if they retain a percentage of them on a long-term basis – and generate future orders of products subscribers loved – then the acquisition cost will be well worth it. And, of course, there is the added benefit of a recurring revenue stream. Provided the company offers quality products, a good unboxing experience, and responsive customer service, this is a big win for Vistaprint.

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