Print businesses chasing margin through pricing alone are fighting the wrong battle, according to UK print entrepreneur Jon Bailey. Speaking at the VMA masterclass, Ink & Innovation, held in Brisbane on 4 June, Bailey argued that sustainable margin growth comes from strategic positioning, customer relevance, and creating value before the sales conversation even begins.
For many print businesses, margin is viewed as a financial outcome – the difference between selling price and production cost.
But according to UK print entrepreneur and Precision Proco CEO Jon Bailey, that mindset is part of the problem.
Opening the VMA's Margin Masterclass in Brisbane, Bailey challenged delegates to think differently about margin, describing it as the "oxygen" that allows businesses to invest, innovate and grow.
"Today is not about how to sell more," Bailey said. "It's about how to create more value, how to protect our value, and how to scale our value."
Bailey's central message was that margin should not be seen as the responsibility of sales teams or estimators alone.
"Margin is not just about the dollar," he said. "Margin is space – space to innovate, space to think, space to learn, space to train, and space to inspire our teams and customers."
He argued that every part of a business, from leadership to the shop floor, influences profitability through the decisions it makes each day.
The disappearing middle
A recurring theme throughout the presentation was what Bailey described as the disappearance of the middle market.
Drawing parallels with industries such as television, music and entertainment, he argued that customers increasingly gravitate towards either highly automated, low-friction services or premium, personalised experiences.
"The middle is where margin goes to die," Bailey said.
For printers, that means making a conscious decision about where they want to compete.
"You can be highly automated, fast and repeatable, or you can be deeply personalised, premium and experiential. You can even be both. But nothing good comes from being stuck in the middle."
According to Bailey, many print businesses continue to position themselves around familiar claims such as quality, service and speed – attributes that competitors are also promoting.
He described this as "better sameness" and warned that it does little to protect margin or differentiate a business.
Instead, printers need to become easier to find, easier to buy from and easier to work with.
A new generation of buyers
Bailey identified six major trends reshaping customer expectations: AI, sustainability, globalisation versus localisation, personalisation, the creator economy and the emergence of digitally native buyers.
Perhaps the most significant change, he said, is that today's customers often decide whether they want to work with a company long before speaking to a salesperson.
"By the time they've come to you, they've already decided whether they're going to work with you or not."
Customers increasingly judge suppliers on what they stand for, how visible they are, their environmental credentials, and the values they demonstrate through their business.
That shift means marketing, brand positioning and customer experience now play a much greater role in protecting margin than traditional sales activity alone.
AI and the creator economy
While acknowledging widespread concern about artificial intelligence, Bailey described AI as one of the greatest opportunities the print industry has seen.
Unlike many professional services sectors, printers still manufacture tangible products, something he believes creates significant opportunities for businesses willing to embrace AI-enhanced workflows and services.
At the same time, he highlighted the rapid growth of the creator economy, where entrepreneurs can launch global brands almost overnight.
These businesses expect frictionless ordering, fast turnaround times and access to production wherever they need it.
For print providers, that means developing systems and customer experiences that are as easy to use as digital platforms.
"Our philosophy is to make print as easy to choose as digital in a world of digital natives," Bailey said.
Sustainability as proof, not promises
Bailey also challenged printers to rethink how they approach sustainability.
Rather than striving for perfection, he encouraged businesses to focus on measurable progress and transparency.
"It's not about being perfect," he said. "People expect us to be getting on with it, and they expect us to evidence it."
He argued that data and measurable improvements now carry more weight than sustainability claims alone.
Beyond reducing environmental footprints, Bailey encouraged businesses to think about their "handprint" – the positive impact they create through their people, communities and customers.
Moving before the market
Closing the first session, Bailey urged delegates not to wait for change to arrive before acting.
Using one of his favourite management sayings – "Opportunity is a bird that never perches" – he argued that businesses create margin by recognising opportunities early and moving decisively.
"Margin isn't protected, it's created," he said.
"Early movers get learning advantage, they improve faster, and they build stronger margin positions."
For Bailey, the truth is plain to see: in an industry facing technological disruption, changing customer expectations and increasing competition, margin is no longer simply an outcome of production efficiency. It is increasingly determined by how a business positions itself, differentiates itself and demonstrates value long before a quote is requested.
Ed's note: This synopsis covers the key takeouts from the first session at the Ink & innovation Masterclass. Print21 will file further coverage... watch this space.