Alaniz … Building
a Direct-Mail Business
A focus on non-profit
premiums has proven to be big business for Iowa-based
printer
This past week, I had the opportunity to interview Randy Seberg, president of Mount Pleasant, Iowa-based Alaniz L.L.C., about the techniques the company used to build their direct-mail business.
Alaniz produces direct-mail packages designed for success in the not-for-profit fund-raising market. Their specialty is fully packaged, personalized premiums; multiple-match formats; and specialty affixing and finishing. Today, the Alaniz family of companies employs more than 1,000 people across the United States. Locations include Alaniz L.L.C. in Mount Pleasant, Iowa; Focus Direct in San Antonio, Texas; Mail America in Forest, Va; and International Data Management in Akron, Ohio.
The History
Founder Salvador Alaniz started his career on Printer’s
Row in Chicago. In the 1960s, he produced labels
for the Veterans of Foreign Wars. Metromail transferred
him to Iowa, and in 1978, Salvador decided to open
his own commercial printing business. Based on his
work experience, he quickly migrated into the production
of dry-gum labels and expanded the business from there.
Seberg became CFO in 1993, COO in 1994 and president
in 1998. Seberg was not a traditional printer, having
started his career in banking. Based on his financial
background, he was very focused on capacity utilization
and attaining a 12-month payback on capital acquisitions.
In the 1990s, the not-for-profit label business was changing rapidly. Dry-gum labels were being replaced with pressure sensitive and crack-and-peel stocks. Traditional offset technology was migrating to digital. For Alaniz, this meant it was time to re-tool the business. The dry-gum label business had turnaround times of eight to 10 weeks. Alaniz realized that to be competitive in the long term, the ability to offer 24-hour turnaround would be critical. Working with Xerox, Alaniz developed a custom workflow that combined pressure-sensitive and crack-and-peel stocks with laser-print technology. According to Seberg, the migration to a digital workflow and digital printing technology was consistent with Alaniz’ corporate philosophy, “Do it right now, right!”
The Product Mix
Today, Alaniz earns more than 80 percent of its revenues
from the not-for-profit fund-raising market. The company
services an array of clients, including the Humane
Society and Habitat for Humanity. The services Alaniz
provides for its customers include program development,
creative design and data management, as well as Web
site design, personalization and fulfillment.
The typical mailing includes a printed envelope, cover letter and premiums. The mix of premiums includes:
• Personalized Notepads – These are one-piece products that combine a number of premiums into one cost-effective package, with 10 to 40 personalized notepad sheets and a donation form attached to the top of the pad. This sheet does double duty as the reply device and the addressing panel. To further enhance this product, a sheet of personalized address labels can be inserted between the donation form and the notepad sheets. If customers want to maximize every component of the package, the notepad backer can be converted into a bookmark.
• Calendars – Wall and desk calendars are sold as a premium that keeps working year-round. Direct-mail fund-raising packages are more than just income generators, they are also awareness builders. Alaniz tells prospects and clients this is why calendars are the perfect marketing tool. They are practical and useful; something that will keep your organization and its cause in view throughout the year.
With size options ranging from 7x4.25-inches to 8.5x11-inches, these calendars can fit into small areas. Clever cartoons, helpful hints or facts about the organization will make each month memorable. Birthday, anniversary and appointment labels and stickers can be included to help mark those special occasions.
• Gift tags – Alaniz also has developed self-adhesive gift tags that can be printed for both holiday and everyday occasions. These tags come on an easy-to-use, peel-off sheet and are designed to be of high value to donors and potential donors. They can be personalized or integrated into a sheet of personalized address labels, doubling the value to the receiver.
• Specialty Affixing – Donors and prospective donors find it difficult to resist free, especially if it’s a gift like a coin, magnet or phone card that has been affixed to a premium. Messages get more serious attention when they include real money. Whether it’s three pennies or a nickel, money doesn’t get ignored. Alaniz has production lines set up for automated, high-speed specialty affixing. To ensure that a direct mail piece grabs the attention it deserves, Alaniz recommends affixing a little something extra to boost response rates.
• Return Address Labels – When it is time to send a letter or a holiday card, return address labels add flair. Alaniz offers an easy-to-use padded booklet design. It eliminates the need to insert oversized label sheets into a desk drawer. Alaniz’s unique format makes personalized address labels handy for retrieval and storage. Available in sizes ranging from 2.13x3.5-inches to 5.5x8.25-inches, each booklet is printed, personalized and padded to exact specifications.
• Seed Packets – Another technique that marketers are using to grow their donor base or business is use of seed packets as a premium. Many companies and organizations have found that seed packets are an effective and affordable way to cultivate lasting relationships with clients. As an experienced inserter of seed packets, Alaniz uses this technique effectively.
The Technology
The Alaniz family of companies is using a broad range
of technologies to produce its direct-mailer packages.
Digital print options include Océ continuous
feed, black-and-white printers, Kodak NexPress Digimaster
9150s, Xerox DocuPrints and Kodak inkjets. Alaniz
also has nine web offset presses and 11 cut-sheet
presses. “To maximize efficiencies, we do hybrid
work. Seberg says. "Every job touches nearly
every technology. We print offset sheets and laser-image
them to provide our customer base with the most cost-effective
personalized solutions.”
A Family of Companies
Beyond the desire ultimately to offer 24-hour turnaround,
Alaniz also believes that customers will demand a
minimum 48-hour delivery. This led to the acquisition
of Focus Direct and Mail America. Additionally, the
company acquired International Data Management to
enhance database skills. Over time, Seberg sees the
need for a blend of partnerships, alliances and acquisitions
to meet the 48-hour delivery window.
The Future
For companies like Alaniz, the future is bright. Seberg
has a strong vision relative to where he wants to
take Alaniz. “Alaniz will be the most efficient
producer in the industry,” he said. “We
will accomplish this by effectively managing our
assets
and delivering high levels of personalization, fulfillment
and distribution capability that differentiate us
in the market.”
DIGITAL OUTPUT MAGAZINE - July, 2004