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© 2016 Franchise Services, Inc.–Business Confidential

Grow Your Business with Labels

Version 1.0


Grow Your Business With Labels Guide

TABLE OF CONTENTS

Our Strategy ................................................................................................. 1

The Opportunity ........................................................................................... 2

Label Types ................................................................................................. 2

What Are We Selling? ................................................................................... 2

Who’s The Buyer? ........................................................................................ 2

Primary Markets ........................................................................................... 3

Label Stocks ................................................................................................ 5

Production Options ...................................................................................... 6

Tabletop Label Printers ................................................................................. 6

Finishing Options ........................................................................................... 7

Buyout Resources ....................................................................................... 7

Marketing ...................................................................................................... 8

Getting Started ............................................................................................. 8

Selling Strategies ........................................................................................... 9

Glossary of Terms ....................................................................................... 10


1

Our StrategyOur strategy is to help our customers grow by providing effective printing, sign and marketing services. We offer a complete line of products and services to help our customers better communicate their message to their customers and prospects.


2

The OpportunityThe demand for labels of all kinds in the U.S. is growing, with an 8% compound annual growth rate that will top $20 billion by 2019. 75% of the label market is for pressure-sensitive labels and virtually every business uses labels of some kind, providing opportunities to sell more labels to almost every customer. Frequent re-orders are also the norm.

Like signs, labels are a product that we have offered for many years by customer request as a reactive sale. With more focus on marketing and selling labels as a key part of our product set, we can grow our label business substantially.

Label TypesThe primary uses for labels are categorized into four areas:• Primary Labels on primary packaging such as bottles, cans, appliances,

other goods.

• Secondary Information labels, usually found on a product but not used to

market the product.

• Industrial Barcode labels, warning labels, shelf labels, bin labels, small signs, etc.

• Utility Everything else: address labels, file labels, small signs, stickers, wrist bands, etc.

What Are We Selling?Most labels are used for one or more of the following reasons:• Branding and product promotion• Identification• Inventory management• Security• Safety

Who’s the Buyer?Labels are used by almost every department within most companies. Typical buyers are:• Purchasing Managers• Warehouse Supervisors• Marketing Departments• Brand Managers• Administrative Assistants and Department Heads• Shipping and Receiving Managers


3

Primary Label MarketsRetail• Product labels• Package and carton labels• On-package promotional labels• Theft deterrent labels• Inventory labels

Health and Beauty• Skin, hair, oral hygiene,bath and shower soaps

and gels, fragrances, cosmetics and perfume labels

• Vitamins and supplements• Scented labels• Theft deterrent labels

Food and Beverage• Wine labels• Plastic water and beverage bottle labels and

shrink sleeves• Food-grade package and carton labels• On-package promotional labels

Automotive• Interior and exterior part instructional labels• Under the hood instructional labels• Tamperproof labels to indicate violation of

warranties• Glass and windshields labels• Static cling oil change labels• Battery, tire labels• Retail packaging labels


4

Primary Markets (cont.)Healthcare• On-device calibration labels• Tamper seal labels• Pharmacy labels• Admissions labels• Anesthesia labels• Biomedical/clinical engineering labels• Central Services labels• Equipment labels and tags• Food services labels• Infection control labels• Laboratory labels• Medical Imaging labels• Nursing labels• Patient medical record labels

Industrial/Service• Industrial/durable labels• Barcoded labels• Inventory labels• Equipment labels and tags• Safety/warning labels• Shelf and bin labels• Static cling labels• UL approved Labels• Weatherproof labels

Promotional • Promotional labels • Booklet labels • On-package/product promotional

labels • Lenticular labels • Page marking labels • Scented labels


5

Label StocksBelow is a table of the most common label stocks and their use. There are many other types of stocks available based on the application and environment that they will be used in. Coatings and laminates are also available to increase resistance to sunlight, weather, liquids and chemicals. Consult with your label provider for more information.

Stock Liner Adhesive

Min.

App.

Temp.

Service

Range Color Thickness General Properties

Matte Litho 40# Hot-melt rubber general pupose permanent

+20°F -65°F to +150°F

White 4 mil General purpose label stock

Gloss 40# Hot-melt rubber general pupose permanent

+20°F -65°F to +150°F

White 3.8 mil General purpose label stock

Fluorescents 40# Hot-melt rubber general pupose permanent

+20°F -65°F to +150°F

Many colors available

3.8 mil Matte finish, General purpose label stock

Semi-Gloss 40# Hot-melt rubber general pupose permanent

+20°F -65°F to +150°F

White 3 mil General purpose label stock

Semi-GlossRemovable

40# Emulsion acrylic general purpose removable

+40°F 0°F to +175°F

White 2.85 mil General purpose label stock

Yellow-Gloss 40# Hot-melt rubber general pupose permanent

+20°F -65°F to +150°F

Yellow 3 mil General purpose label stock

Thermal Transfer

40# Hot-melt rubber general pupose permanent

+15°F -15°F to +185°F

White 2.8 mil Smudge proof

Metallic Foils 40# Hot-melt rubber general pupose permanent

+40°F -50°F to +150°F

Many colors available

3 mil Laminated foil on white kraft base

Semi-Gloss Blackout

40# Emulsion acrylic general purpose permanent

+40°F -50°F to +150°F

White 3 mil For covering up errors or block-ing out what’s underneath

Thermal Transfer-Blackout

40# Emulsion Acrylic general purpose permanent

+40°F -50°F to +150°F

White 3.4 mil Smudgeproof. For covering up errors or blocking out what’s underneath

Polyester 40# Emulsion acrylic general purpose permanent

-20°F -65°F to +200°F

Various colors and metallics

3 mil For cold weather and freezer applications

Vinyl 40# Emulsion acrylic General purpose permanent

-20°F -65°F to +200°F

White 7 mil Waterproof, UV-resistant and practically unscuffable

BOPP 40# Water resistant film with high-tack permanent adhesive

+40°F -50°F to +150°F

Clear, white 2 mil Indoor and outdoor use for non-conformable applications


6

Production Options For low volumes, short runs or quick turnaround times, labels can be produced in house with:• Large-format inkjet color printer• Laminator• Roll-fed contour cutter.

For larger volumes, pressure-sensitive and paper-backed labels can be produced in house with dedicated roll-fed tabletop digital label printers and laminators with in-line or near-line contour cutting options.

Company Model Type Speed Capabilities List Price Notes

Afinia L801 4-color roll-fed Inkjet

Up to 60 fpm, 1600 x 1600 dpi

Up to 8.5 inch wide rolls, pre-die cut sizes only

$9,000 No full bleed, low water and UV resistance

Afinia DLP-2000

4-color roll-fed Inkjet

Up to 30 fpm, 1600 x 1600 dpi

Up to 12 inch wide rolls, inline fliexible diecut and weeding

$59,995 No full bleed, low water and UV resistance

Primera LX 2000 4 color dye-sublimation

Up to 30 fpm, 4800 x 1200 dpi

up to 8.25 inch wide rolls, pre-die cut sizes only

$3,595 Does durable labels

Primera CX-1200 4-color roll-fed toner

Up to 17 fpm, 2400 x 2400 dpi

Up to 8.5 inch wide rolls, inline flexible diecut and weeding

$20,000 Optional inline laser cutter option: $30,000

No polypropoline labels

Allen Datagraph

Axxis HS 4-color roll-fed Inkjet

up to 25 fpm, 600 x 1200 dpi

Up to 14 inch wide rolls, inline slitting and straight cut

$20,000Optional inline laser cutter option: $30,000

No polypropoline labels

Roll-fed Inkjet printer with contour cutter. Tabletop label printer with fixed width media. Tabletop label printer with re-winder.

Tabletop Label Printers


7

Finishing Options Although not required to get started, essential equipment for finishing labels includes near-line and in-line roll media laminators, contour cutters, strippers and re-winders. Primera and Afinia and others offer finishers that can handle all three of these functions in a single tabletop unit.

Afinia DLF-1100 Tabletop laminator, contour cutter,

slitter, stripper and rewinder. List price: $28,995.

Primera FX1200 Tabletop laminator, contour cutter,

slitter, stripper and rewinder. List price: $34,995.

Company/Website Contact Label Types

Discount Labels Melissa Martin Wide variety of labelswww.discountlabels.com 812/981-4952 and tags melissa.martin@discount labels.com

Stouse Lori Woodbury Wide variety of labelswww.stouse.com 877/764-5757 x209 [email protected]

Digital Label Solutions Customer Service Most common types ofwww.digitallabelsolutions.com 714/982-5000 labels, shrink sleeves [email protected]

4Over Jose Valencia Most common types ofwww.4over.com 877/782-2737 ext. 8-4344 labels and tags [email protected]

Buyout Resources


8

MarketingIts important that you market labels as part of your product offering. We are in the process of adding labels under the ”Products & Services” tab of your local website. A direct mail piece, email template and copy and images for the capabilities brochure will also be available soon.

Getting Started The best place to get started with growing your label business is with your current customers. We recommend that you download and review the product catalogs from Discount Labels and Stouse to get a better understanding of the types of labels that are available and the primary markets that use them.

Both Discount Labels (www.discountlabels.com) and Stouse (www.stouse.com) offer a series of educational product webinars through their websites. Discount Labels also offers onsite workshops on a request basis for 8 or more.http://www.discountlabels.com/ToolsResourcesLabelsUniversity

If you have any questions or would like help with growing your label business, contact Dave Sigafus, Director of Business Development, at 800/894-7498 or [email protected].


9

Selling StrategiesTo effectively sell more labels you need to have a “solution selling” conversation with your customer that helps you to understand their needs and be better able to identify the proper solution. Below are sample questions to help get you

started.

Opportunity Identifiers

Conditions that might indicate a need for labels:• Retail products/packaging• Healthcare (labels for equipment inventory and calibration, patient management, drug management, safety)• Automotive (labels for inventory, on products, date of next service, parts indentification, instructions)• Industrial/service businesses (labels for inventory, safety, instruction, equipment tracking and calibration)• Promotions (in and on products and packaging)• Inventory tracking• Security

Current Condition

• Do you currently use labels in your business?• What do you use the labels for and how long will they need to last?• Do your need to track inventory or warehouse items, equipment or product?• Do you have issues with security or tampering with products?• Do currently you use labels for product promotions?

Problem

• How is that working for you?• What challenges are you having?• What would you change?• What can I do to help you be more effective?• How would you like it to work?

Implication

• Is that a problem worth solving?• Who is held accountable?• What is it worth if _______ could be fixed?• How much is your time worth?• How much is lost doing it they way you currently do things?• What could you focus on if this problem went away?

Proposal • If I could address that would you be interested?• I might have a solution that could help you, let me put some things together and come back and show you,

would that work?• I believe we can provide a solution that works for you, let me go back and talk with my team, can we

meet again to discuss?


10

Glossary of TermsBelow is a glossary of common terms used in the label industry.

Adhesion - A measurement of the force required to remove a label from a substance.

Adhesive - Substance (glue or gum) used to allow label/tag to adhere to substrate.

Adhesive (Pressure Sensitive) - A type of adhesive which in a dry form is aggressively tacky at room temperature. It has a capability of promoting a bond to dissimilar surfaces on contact, with pressure.

Backing - see Carrier/Liner.

Carrier/Liner - Refers to the backing material the pressure sensitive labels are carried on.

Continuous Label - Fan-folded labels manufactured form a continuous web of label stock which is not cut into units prior to execution. Continuous labels are mostly used for data processing applications and automated methods to adhere the labels to a product on an aseembly line.

Matrix - The face material and adhesive surrounding a self-adhesive label, usually removed after die-cutting.

Mil - Unit of thickness measurement used for thin materials. 1 mil=0.001 inch =100 gauge.

Overlaminating - Applications of a clear film to a label stock for the purpose of protection or to enhance graphic quality, usually done in-line on the press.

Piggyback - Multi-ply P.S. laminate consisting of a face stock; a layer of adhesive; a standard release liner; a layer of adhesive; and a standard release liner. This type of product provides a single label that can be applied to a substrate using the adhesive on the middle liner; then the top ply is removed and applied to a different substrate using the adhesive on the face stock.

Tamper-Evident Label - A pressure-sensitive construction made of materials which will partially destruct upon removal, indicating that a package, label or container has been tampered with.

Wind Direction - Position of the printing as it comes off the finished roll.


NOTES


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