Vistaprint 2007 Annual Report Download - page 10

Low Cost Operations
With the improvements we have made in automating the entire design and production process,
we can print and ship an order the same day we send it to production, which results in minimal
inventory levels and reduced working capital requirements. This allows us to produce high-quality, low
price products at high margins even though our average order values are low by traditional standards.
During the fiscal quarter ended June 30, 2007, we regularly averaged in excess of 19,000 individual
customer orders per day, at average order values of approximately $32, with an aggregate cost of
revenue as a percentage of revenue of approximately 35%. In comparison, typical local printers handle
only a few orders per day, have order values that are significantly higher and operate with significantly
higher costs of revenue.
Customer Service
We differentiate our product offerings by giving English-speaking customers live, toll-free
telephone customer service to provide a satisfying, service-rich experience founded on interaction with
highly trained customer service and design representatives. In addition, we offer e-mail support for
customers on all of our websites.
Direct Marketing Expertise
We have developed expertise in direct marketing to target new customers across various
channels and to drive more sessions on our websites. We attract and retain customers through direct
marketing using the Internet, e-mail and other traditional direct marketing methods, and viral and word
of mouth marketing. We maintain a global client database to market our new products and services. In
addition, we have developed multiple marketing technologies designed to maximize the number of
customers actively purchasing from us.
Global Partnerships
We have entered into a variety of strategic partnerships that facilitate access to key markets that
we would not be able to reach through direct marketing channels. We focus on cultivating opportunities
with strategic importance in the small business, print and office superstore marketplaces. By rapidly
developing and deploying custom content print portals, we have built additional capabilities to expand
into new strategic partnerships and distribution channels.
International Reach
We have built our service to scale worldwide and use multiple localized websites and different
languages to generate demand for our products, serving customers in more than 120 countries. Our
localization and language map content management system software facilitates our entry into new
markets and allows us to make changes to all of our localized websites with the same software and
relatively simple, standardized and low-cost procedures.
Value for Customers
We provide our customers with the following benefits:
High-Quality Automated and Customized Graphic Design
Through our proprietary technology we offer a new approach to graphic design, reducing or
eliminating the need for purchased software or a professional graphic designer. We provide a simple,
quick, and affordable way for customers with no training or experience in graphic arts to produce high-
quality, personalized, professional looking graphic designs. Our customers also have access to our
proprietary web-based design and editing software that uses algorithms to automatically create
6