I hear some people talking about, "oh we don't do wraps, we just letter vehicles.. and maybe throw some graphics on.."
3M Original Wraps does that too. They'll do anything.. from a simple 1 line phone number to a full wrap.
For those of you who say, "This isn't messing with my market... it's not affecting my business.... how do you know? You wouldn't because that customer 3M stole would never know about your business, because they wouldn't have the option.
Here's a simple... non attacking... just informative write up. Thanks for reading.
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Would you buy your vinyl from the graphics shop down the street you bid against constantly?
With its purchase of Original Wraps in April 2011, 3M began pursuing a course of action that positions the company as a direct competitor of sign shops like yours.
Currently Original Wraps offers personalization of vehicles as well as commercial wraps and graphics. Before its purchase by 3M, Original Wraps had secured contracts with most of the major automotive manufacturers to provide an incentive program for vehicle graphics on fleets leased through their dealerships. 3M made its intentions for the Original Wraps program less than clear. Sign shop owners, all 3M customers, have been told at various times that the program was dead, that the program would ONLY be targeting personalization and not commercial graphics, or that the reason the company purchased Original Wraps was to actually shut the program down.
It has become evident that none of these statements are true. 3M is actually moving forward with the Original Wraps program. The Original Wraps website,
www.originalwraps.com, references both personalization and commercial products. 3M’s Original Wraps employees are present at many dealerships soliciting business. Customers at some sign shops have disclosed the offers on vehicle graphics they have received through the Original Wraps program. Shops have lost bids on fleets because they were undercut by Original Wraps pricing levels that only 3M, as a manufacturer of vehicle graphics products, can provide.
3M claims that the Original Wraps program does not make 3M a direct competitor because the company uses other graphics companies to produce and install the vehicle graphics. This position falls apart when 3M’s control over the process is considered:
- 3M are the ones actually selling the vehicle graphics.
- 3M are the ones taking the Profits
- 3M are the ones leaving the graphic producers and installers with below industry standard rates for their services. (3M sets the install prices companies can charge)
- 3M will not issue a warranty on vehicle graphics offered through the Original Wraps program unless installation is performed by a 3M endorsed installer
- Requirements for becoming a 3M endorsed installer are unclear
Even if a shop decides to pursue 3M endorsement, participation in the Original Wraps program only leads to an increased dependence on 3M. Anyone who has experience with the special pricing programs 3M currently offers will understand how this is possible. In order to qualify for the special pricing programs, the customer must provide 3M with specific job details—end user information, job scope, and the like. Once 3M is armed with this information, and given its lower cost of materials, what is to stop 3M from soliciting the customer directly? The crucial issue is not whether 3M is doing printing or installing work; the issue that makes Original Wraps harmful to sign shops is that 3M is actually selling Graphics. A customer who purchases through Original Wraps never knows or meets the printer or installer; the customer’s only relationship is with 3M. The company actually doing the work has no opportunity to build a relationship with that client or to establish the groundwork for future jobs. Instead, that printer or installer will become both bound to 3M’s pricing structure and dependent on 3M for work.
3M states that the Original Wraps program will grow the wraps and vehicle graphic market through increased visibility and advertising alongside the dealerships &OEMs. From 3M’s perspective, this is true. Original Wraps will increase the amount of graphics produced and installed on 3M material and sold by 3M, all the while taking jobs and power away from existing wraps providers, and sign shops.
3M’s people will attempt to say Original Wraps is good for us. They will attempt to say that they will be using local graphics manufacturers to produce graphics. The fact is that they will use only a few producers who can meet their nebulous requirements. They will attempt to say that they will be using thousands of local installers to install the graphics. The truth is they will use a handful of installers around the country, and they will dictate the below industry standard install rates. The second you are no longer useful to them, they will move on to another installer.
The fact that automotive manufacturers and dealerships are interested in offering graphics represents a great opportunity for the wraps industry. There could have been potential benefits shared by all players in the vehicle graphic industry, from suppliers to distributors to shops. The way 3M has pursued the Original Wraps program and misled its customers about its intentions proves that 3M is only concerned that it benefits from the opportunity. While there is nothing illegal about what 3M is doing, we believe it is unethical and just plain bad business to compete against your customers.
3M is looking at the Original Wraps program as a numbers thing. The company believes it can and will sell more vinyl through the Original Wraps program dealing directly with the OEMs. We believe that we have the power to prove 3M wrong. We will not finance our competition.
A lot of jobs are spec’d on 3M. The truth is that in most cases, the customer doesn’t care who manufactures the film, as long as it is quality material. It is our job to show the customer that the alternative film we are offering is as good as, if not better than, 3M product. We should also be working with our distributors to ensure they are stocking quality alternatives to 3M products. The Original Wraps program is not only hurting shops. By limiting the shops eligible to complete Original Vehicle graphic jobs, 3M is also cutting distribution out of the loop. Please express this concern to your distributors. Standing together with our distributors will only increase our power as independent shops united to voice our opinions with our words, actions, and dollars.
Customer action like this has made an impact in the vehicle graphic business before. Avery is still reeling from the effects of widespread negative sentiment towards its brand due to the company’s poor handling of warranty issues years ago—Avery wrap products still suffer from a reputation for poor quality. 3M has demonstrated disregard for its customers and distributors in favor of pursuing the company’s own short-term gain through the Original Wraps program. The company has positioned itself at odds and in direct competition with its customers and has forfeited any loyalty that 3M customers have shown to this point.