Vistaprint 2007 Annual Report Download - page 23

Risks Related to Our Business
If we are unable to attract customers in a cost-effective manner, our business and results of
operations could be harmed.
Our success depends on our ability to attract customers in a cost-effective manner. We rely on a
variety of methods to draw visitors to our websites and promote our products and services, including
purchased search results from online search engines, e-mail, telesales, and direct mail. We pay
providers of online services, search engines, directories and other websites and e-commerce
businesses to provide content, advertising banners and other links that direct customers to our
websites. We promote our products and special offers through e-mail, telesales, and direct mail,
targeted to repeat and potential customers. In addition, we rely heavily upon word of mouth customer
referrals. If we are unable to develop or maintain an effective means of reaching small businesses and
consumers, the costs of attracting customers using these methods significantly increase, or we are
unable to develop new cost-effective means to obtain customers, our ability to attract new and repeat
customers would be harmed, traffic to our websites would be reduced and our business and results of
operations would be harmed.
Purchasers of graphic design services and printed products may not choose to shop online,
which would prevent us from acquiring new customers which are necessary to the success of
our business.
The online market for graphic design services and printed products is less developed than the
online market for other business and consumer products. If this market does not gain widespread
acceptance, our business may suffer. Our success will depend in part on our ability to attract
customers who have historically purchased printed products and graphic design services through
traditional printing operations and graphic design businesses or who have produced graphic design
and printed products using self-service alternatives. Furthermore, we may have to incur significantly
higher and more sustained advertising and promotional expenditures or price our services and
products more competitively than we currently anticipate in order to attract additional online consumers
to our websites and convert them into purchasing customers. Specific factors that could prevent
prospective customers from purchasing from us include:
‰concerns about buying graphic design services and printed products without face-to-face
interaction with sales personnel;
‰the inability to physically handle and examine product samples;
‰delivery time associated with Internet orders;
‰concerns about the security of online transactions and the privacy of personal information;
‰delayed shipments or shipments of incorrect or damaged products; and
‰inconvenience associated with returning or exchanging purchased items.
We may not succeed in promoting, strengthening and continuing to establish the VistaPrint
brand, which would prevent us from acquiring new customers and increasing revenues.
Since our products and services are sold primarily through our websites, the success of our
business depends upon our ability to attract new and repeat customers to our websites in order to
increase business and grow our revenues. For this reason, a primary component of our business
strategy is the continued promotion and strengthening of the VistaPrint brand. In addition to the
challenges posed by establishing and promoting our brand among the many businesses that promote
products and services on the Internet, we face significant competition in the graphic design and printing
markets from printing suppliers who also seek to establish strong brands. If we are unable to
Form 10-K
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