Stamps have been around awhile, a fact confirmed by the IMIA’s (International Marking & Identification Association) age, which is more than a century. Over the past 100 years, the means by which a stamp is made has increased in speed, ease, efficiency and cost effectiveness, all due to advances in technology. Today, a new technology is changing how stamp business gets done. Let’s talk a little bit about those advances, as well as the diverse and lucrative nature of stamps.

Lucrative Margins
In most instances, the overwhelming reason for any business to sell any product is that it will be profitable. Whenever adding a new product to a line, this is always the most prudent question to ask. In the case of rubber stamps, the answer has been a consistent and solid, “yes.” Once upon a time, the owner of a stamp shop could make stamps and nothing else and still send the kids to college, drive a BMW and retire young and comfortable. That is no longer the case, but stamps are still a proven and very profitable product to sell.

As a custom product, stamps are a natural fit in an award retailer’s line-up, and they are not price sensitive. Photo courtesy of Trodat USA

Of course, there are other reasons as well. According to Tom Jackson of Jackson Marking Products in Harwood Heights, Illinois, “Stamps provide awards shops with nice product diversification and require little additional equipment expense. The margins are good, and the learning curve for someone experienced in awards production is very short.”

Martin Clemente of Xstamper in Harbor City, California, notes that stamps are highly profitable products with no investment for shops that already have a laser engraver.

Chris Boyle of Trodat USA in Piscataway, New Jersey, adds that as a custom product, stamps are a natural fit in an award retailer’s line-up, and they are not price sensitive. “Since most end-users do not have a preconceived price point for a custom stamp, the retailer can charge full list, which starts at $20 and can go as high as $100 or more. Stamps can also be a very low-risk product to get started with if an award retailer utilizes a local RSM as his manufacturing partner. By having the stamp maker finish the product for them, the award retailer can just focus on selling the stamps to their customers and making additional sales and profit. Most stamp makers are more than willing to sell stamps to retailers at a wholesale price to reach additional customers,” says Boyle.

Advancing Technology
Way back when, the creation of a stamp involved Goodyear’s Vulcanization process to create the rubber and a mold to give it form. Because of this, many have argued that rubber was, in fact, man’s first plastic. However, in the century-and-a-half since Goodyear’s discovery, rubber stamps have come a long way.

Jackson tells us that two advances in recent years stand out. “One is the advent of ‘flash’ stamp production, where a xenon lamp is used to form a pre-inked stamp printing die in less than a second. It is a very clean and quick way to make a high-quality stamp. The other is the adaptation of laser engraving to create stamp printing dies that can be used for traditional or self-inking stamps.”

While those advances are remarkable, particularly to those members of the industry who were around before the technology was invented, both “flash” technology and lasered stamps have been around for a decade. The latest progress has been to revolutionize the way software contributes to the creation of stamps.

“Ecommerce systems are by far the greatest advancements. These systems, tied into software for a laser-engraver, can make for a seamless and zero-labor manufacturing process,” says Boyle.

Online ordering systems, says Clemente, have taken the majority of the labors and costs out of selling and ordering finished rubber stamps.

Methods
If the profitability and ease of creation of rubber stamps has ignited an interest in producing and selling the product, and knowing that there is more than one method used to create them, it is only natural to wonder which makes the most sense for any particular awards and engraving shop.

Stamps provide awards shops with nice product diversification and require little additional equipment expense. Photo courtesy of Jackson Marking Products

Jackson asserts that there is no single “best way” to create a stamp. However, he says there is a “best way” for each individual awards retailer. Depending on the equipment a shop already owns and their strategy for stamps (their strategy may be to outsource the stamps rather than create them), he says any of the following methods could be the efficient method for a shop.

First, photopolymer systems are great for “batch” production of stamps, i.e., collecting the stamp orders throughout the day then processing them in a batch at one time. Jackson says this is the lowest-cost method to make stamps.

Second, a “flash” system like the Brother Stampcreator is best for fast service. With this method, Jackson says stamps can be made on the spot and delivered to anxious, while-you-wait customers.

Third, Jackson says laser engraving equipment can be used for stamp production, thereby negating any additional equipment expense. Although, he notes that stamp engraving can create a pungent odor and leaves ash and residue in the machine, which many store owners prefer to avoid.

To others, these side effects are of no consequence in comparison to the benefits of creating a stamp via laser.

“Without hesitation,” notes Boyle, referring to his earlier comments, “lasers are the best way to make rubber stamps.”

Clemente shares Boyle’s opinion in this matter, saying, “Laser engraved, pre-inked rubber stamps are the highest quality stamps made.”

Lasers have really changed the way custom products are made, and will continue to have a major impact going forward, adds Boyle. He also notes that, “Trodat’s laser division, Trotec, continues to grow at a record pace even in a down economy, as more and more manufacturers move to laser equipment.”

There are several reasons for this continued growth and overall migration to lasers. A laser can have a single operator, says Boyle, and it can make multiple products (stamps, signs, awards, etc.) allowing a shop to run leaner in a tough economy and actually expand their product offering. “No other manufacturing method can offer such diversity in products,” says Boyle.

Boyle acknowledges the one objection to be heard about a laser is the initial cost, which is higher than other stamp-making equipment. “However, in my experience, you don’t hear laser buyers say, ‘I wish I wouldn’t have bought a laser.’ You hear them say, ‘I need to buy another one!’”

Types
There are methods for making stamps, and then there are the types of stamps that are actually created. It is very likely that you have encountered each type at one time or another.

According to Jackson, there are four different types of stamps. First up are self-inking stamps. “A polymer or rubber die is mounted in the stamp case and rests against an ink pad. The user compresses the case causing the die to flip over and strike the paper or other surface below. This is the most popular stamp mechanism in the U.S.”

The margins for stamps are good, and the learning curve for someone experienced in awards production is very short. Photo courtesy of Jackson Marking Products

The second stamp up for discussion is the pre-inked stamp. “A foam rubber pad is flashed to seal the non-printing areas of the stamp. The foam acts as an ink reservoir and the ink flows through the open areas of the foam to make an imprint. This is the newest type of stamp on the market, and it is gaining in popularity.”

Next up is the pocket stamp, and this is any type of “portable” stamp that can be carried in the pocket or purse. Jackson says these can contain a self-inking or pre-inked mechanism.

Finally, the traditional stamp may be the image conjured in your mind whenever you hear the word “stamp.” “The knob handle stamp still lives! Many consumers still prefer the wood mount stamp and a separate ink pad to make their mark,” says Jackson.

As for their uses, Boyle says that name and address, followed by deposit and then signature stamps make up the bulk of stamp volume.

21st Century Relevance
The world is going digital. On one small, light and easily portable device, a person can store their entire libraries of music, movies and books. In this environment, it is fair to ask, are end-users finding new uses for marking and ID products in an increasingly digital world?

Jackson notes that our “digital world” generates millions of pages of printed documents every day. “As paper is passed from desk-to-desk and office-to-office, there are many opportunities to stamp it along the way. While the market and uses for stamps have changed over the years, stamps are still a viable product in today’s digital world.”

Boyle agrees, “Absolutely, you still have the traditional core uses for stamps, such as check endorsement, notaries, name and address and signatures. And, while check endorsement stamps are definitely utilized less than they were just a few years ago, they are still one of the most dominant applications. Notaries, on the other hand, have seen significant growth in stamp sales as customers moved from older notarization methods like embossers.”

“Yes,” Clemente concurs. “In this digital world, people are able to make different and unique stamps with logos or monograms.”

In terms of “new” applications, Boyle says one of the biggest booms has been in the monogram stamp business just mentioned. Monogram stamps are a low-cost way to mark books, stationery and wedding invitations. This stamp is very attractive to retailers looking to capitalize on “impulse” purchases.

“The bottom line is that stamps, even in the digital age, will be around for some time,” says Boyle.

Customers To Target
Knowing that stamps are profitable, deciding on a method to create them and which type of stamp to create with that method is all well and good, but someone still needs to buy the stamps.

Clemente notes that all local small businesses are candidates for stamps.

Jackson expands that target to include any place that pushes paper is a viable prospect: offices, schools, medical facilities, factories, warehouses, government offices, libraries, individuals, etc.

“Make sure that the customers visiting your shop know you make stamps. Oftentimes, that results in spontaneous purchases. Use posters, counter displays and brochures to get the word out,” says Jackson.

Boyle concurs that existing customers are a great group to target. “You know the saying, ‘Fish where the fish are?’ In this case, we are talking about an award retailer’s existing customers: the ones that have already bought something from them in the past. If you’re going to start, then you might as well start with the people that already know you take care of them! That’s where I would tell an awards retailer to start. Shops should send out literature and make phone calls to all of their existing customers letting them know that they now offer custom stamps and would love an opportunity to earn this portion of their business.”

Pricing Practices
Pricing is always a balance between science and art. The science provides the numbers necessary to achieve a profit of any kind. The art is figuring out just how much profit customers will be willing to pay for. Price too low and the perceived value of the product diminishes. Price too high and no one will buy.

Jackson has a method awards and engraving professionals may find useful. “Go to the local big-box office supply store and check their stamp prices. That is a good starting point for research on stamp prices in your market. Don’t try to match the low costs for stamps on the internet—you’ll be providing a much higher-quality product in a much shorter timeframe, so you’ll be able to sell for a higher price than internet stamp providers.”

Boyle suggests visiting the local little guys as well.

“If they utilize a local stamp maker to finish their product, they can ask for a recommended retail price,” says Boyle. “Most stamp makers will be able to provide this to them, and help them get started selling stamps pretty quickly.”

It is also always a good idea to ask your manufacturer or distributor their opinion on pricing for your region. You may be pleasantly surprised at the insight they offer.

“We have suggested retail prices for our products,” notes Clemente.

Stamped, Sealed, Delivered…
There is little risk in awards shops offering stamps. It is a product with obvious crossover potential, and its stability and margins are two attributes that other products wish they could tout.

“Producing stamps in an awards shop provides an easy diversification with a minimal equipment investment. The product is in demand, and it will draw new customers through the door who will be exposed to the entire product line of the retailer. The profit margin on stamps is very good, and the additional sales of existing products is a very nice side effect,” says Jackson.

The ultimate decision lies with the shop owner, but in the opinion of every industry professional available to discuss it, this is one decision that can be rubber stamped.