Nonprofit program buoys Portland copier
Photo/Mindy Favreau
Philip Rhinelander, owner of Xpress Copy in Portland, believes in doing well by doing good.
Since Philip Rhinelander opened Xpress Copy 31 years ago, he's discovered generosity can be good for a company's bottom line, especially when times get tough.
Eight years ago, the company on Fore Street in Portland launched a program aimed at helping nonprofit organizations in southern Maine print their newsletters, fliers and programs at an affordable rate. Instead of offering each nonprofit a percent discount for copying and printing, Rhinelander decided to treat the nonprofit sector as one large corporation and "give them the same wholesale rates as monster corporations like BIW or Bean's," Rhinelander says. Since 2003, the Nonprofit Savings Program has saved southern Maine nonprofits nearly $750,000, and Rhinelander said he hopes that number will near $1 million by the end of 2009. Over the same period of time, the nonprofits have contributed nearly $1 million to Xpress Copy's revenue.
A musician and former music teacher from Vermont, Rhinelander started his company in 1978 on Exchange Street and immediately extended a helping hand to nonprofits. He began by offering nonprofits a 5%-10% discount on copying and printing on a first-come first-served basis, but would have to discontinue it after the first month of every year to avoid falling into the red. "Over the years, I realized that nonprofits were a huge amount of business," Rhinelander says. In 2003, Xpress launched the pilot of the nonprofit program using 25 large nonprofits as test subjects. The program was so popular and cost-effective that the company decided to stick with it. He says the nonprofits who participated that first year saved thousands. "After the first year, I thought, ‘Wow, this is gonna work, and we're not going to lose our shirt and go out of business,'" Rhinelander says. "The volume increased so much that, even though our margins were tight, it worked for us."
Since then, the program has attracted nearly 300 nonprofits, making the nonprofit sector one of the company's largest business drivers. The average savings for these organizations at the wholesale rate is close to 40%. Xpress Copy markets the deal primarily through word-of-mouth and also in regular ads in Portland Stage Co. programs, and receives an inquiry from a new nonprofit at least once a week. The program has also generated business from the for-profit world from companies impressed by Xpress Copy's philanthropic efforts, says Rhinelander. "Business people are happy to know their corporations are paying competitive prices to support nonprofits."
The biggest challenge in offering the nonprofit program has been convincing organizations that the cheaper rates don't mean Xpress is scrimping on quality, Rhinelander says. By regularly updating its printing machines, Xpress is able to offer high-quality products without adding workers to its seven-person staff or passing costs on to the customer. The company also keeps its overhead down by limiting its advertising, not hiring commission-based sales people and delivering products instead of hiring a delivery service. The business model has allowed Xpress to stretch its money, helping many nonprofits instead of a select few. "We're not favoring anybody," Rhinelander says.
And though Rhinelander feels good helping nonprofits, he's also found it to be a "superb business decision." The company's color-copy volume has grown from 35,000 copies a month four years ago to 200,000 a month now, he says. Though nonprofits are feeling the pinch, many who opt to handle their printing in-office usually decide Xpress Copy's deal is more cost-effective and generates better results. "People say they want to run their newsletter themselves, and then they're back the next month," Rhinelander says.
Xpress Copy's business from the nonprofit sector has been vital in sustaining it during the recession. "If we didn't have this program, these machines would not be running this busy," Rhinelander says, citing the company's annual revenues of over $1.5 million. "These smaller jobs keep us busy and will help pull us through the recession, and we hope to have [nonprofits] pull through, too."
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