Deluxe Corporation, a prominent player in the financial industry, has embarked on a transformative journey to revolutionize small business solutions.
With a rich history spanning over a century, Deluxe is renowned for its provision of checks, serving as one of the largest providers in the United States.
However, recognizing the evolving landscape of business needs, Deluxe has diversified its portfolio to include innovative marketing solutions.
The company's strategic shift towards these solutions is evident in the significant growth of its Marketing Solutions and Other Services (MOS) segment, which now accounts for a substantial portion of its sales.
By leveraging its expertise and market dominance, Deluxe aims to cater to the ever-changing demands of small businesses while expanding its digital marketing capabilities.
Key Takeaways
- Deluxe Corporation is diversifying its business from check printing into marketing solutions.
- The company's Marketing Solutions and Other Services (MOS) now make up a significant portion of its sales.
- Deluxe is focused on small businesses and expanding its digital marketing solutions.
- The company is slowly moving away from its check printing business and aiming to split sales between checks and MOS business.
Deluxe's Extensive Small Business Solutions
Deluxe Corporation is spearheading a revolution in small business solutions by offering an extensive range of tailored services and innovative solutions.
As small business marketing trends continue to evolve, Deluxe recognizes the need for businesses to adapt to the impact of digital transformation. With the rise of online platforms and the increasing importance of digital marketing, small businesses must stay ahead of the curve to remain competitive.
Deluxe's small business solutions address this need by providing comprehensive marketing strategies that leverage digital platforms and technologies. By offering services such as website development, search engine optimization, social media management, and email marketing, Deluxe equips small businesses with the tools they need to thrive in the digital age.
Through its commitment to staying at the forefront of small business marketing trends, Deluxe is empowering entrepreneurs to navigate the challenges and opportunities of the digital era.
Deluxe's Innovative Digital Marketing Offerings
As part of its comprehensive small business solutions, Deluxe Corporation offers innovative digital marketing services that cater to the evolving needs of entrepreneurs in the digital age. Deluxe's digital marketing offerings have a significant impact on small businesses by helping them reach a wider audience and increase their online visibility. The effectiveness of these solutions is evident in the measurable results they deliver, such as increased website traffic, higher conversion rates, and improved brand recognition.
To evoke an emotional response in the audience, Deluxe's digital marketing services provide targeted advertising campaigns that help small businesses connect with their ideal customers, resulting in increased sales and revenue. Additionally, Deluxe offers social media management and engagement strategies that foster meaningful relationships with customers, building trust and loyalty.
These services not only level the playing field for small businesses but also empower them to compete with larger competitors in the digital marketplace. Deluxe's commitment to providing cutting-edge digital marketing solutions demonstrates their dedication to the success and growth of small businesses in today's digital landscape.
Expanding MOS: Deluxe's Strategic Move
To further enhance its small business solutions, Deluxe Corporation is strategically expanding its Marketing Solutions and Other Services (MOS) segment. This move is in line with Deluxe's goal of diversifying away from its traditional check printing business and focusing on growthier lines of business. MOS now makes up 33.4% of Deluxe's sales and encompasses 43% of the Financial Services segment revenue. By expanding its MOS segment, Deluxe aims to cater to the needs of its target market, America's small businesses, and provide them with comprehensive marketing solutions. The table below illustrates Deluxe's marketing solutions growth and its impact on the overall business:
| Year | MOS Revenue | MOS as % of Small Business Services Revenue | MOS as % of Financial Services Segment Revenue |
|---|---|---|---|
| 2016 | $XXX | XX% | XX% |
| 2015 | $XXX | XX% | XX% |
| 2014 | $XXX | XX% | XX% |
Expanding MOS allows Deluxe Corporation to leverage its expertise and dominate the niche market it operates in. This strategic move aligns with Deluxe's long-term vision of becoming a leading provider of small business solutions.
The Future of Deluxe's Check Printing Business
With the expansion of Deluxe Corporation's Marketing Solutions and Other Services (MOS) segment, the future of Deluxe's check printing business becomes a topic of interest. As digitalization continues to transform the business landscape, the future of check printing faces several challenges and opportunities:
Challenges:
- Decreasing demand: The rise of electronic payment methods has led to a decline in check usage, impacting the demand for check printing services.
- Cost efficiency: Digitalization offers businesses a more cost-effective alternative to paper checks, potentially reducing the need for check printing.
Opportunities:
- Niche market: Despite declining usage, checks still account for a significant portion of non-cash transactions, presenting a niche market for Deluxe's check printing business.
- Value-added services: Deluxe can differentiate itself by offering value-added services alongside check printing, such as fraud prevention solutions and customization options.
To navigate the evolving landscape, Deluxe may need to adapt its check printing business model and explore new avenues, such as digital payment solutions, to ensure its continued relevance and profitability.
Deluxe's Competitive Advantage in the Niche
Deluxe Corporation possesses a significant competitive advantage in the niche market it dominates. With its strong presence in the check printing business, Deluxe enjoys a unique market dominance that is difficult for competitors to replicate. This market position allows Deluxe to capture a large share of the checks business, which still accounts for a significant portion of non-cash transactions.
However, Deluxe is not solely reliant on this segment. The company has been diversifying its business into marketing solutions, which now make up a substantial portion of its sales. This strategic move positions Deluxe for future growth potential in the rapidly evolving marketing industry.
Deluxe's Valuation and Potential Growth Prospects
Deluxe Corporation's valuation and potential growth prospects can be analyzed through various financial indicators and market trends. Here are some key points to consider:
- Deluxe's financial performance has been strong, with the company dominating the checks business and successfully diversifying into marketing solutions.
- The impact of tax reform on Deluxe's valuation could be significant, potentially boosting the company's bottom line and leading to a higher multiple for the overall business.
- The evolution of Deluxe beyond the check printing business is also a positive factor that could contribute to its valuation and growth prospects.
- Investor opinions on Deluxe's potential are mixed, with some suggesting adjusted EPS and praising the company's management.
Investor Perspective: Tax Reform and Deluxe's Potential
Analyzing the potential impact of tax reform on Deluxe Corporation's valuation and growth prospects, investors are considering the significant benefits it could bring. The proposed tax reforms, such as lower corporate tax rates and potential repatriation of overseas profits, could result in a substantial boost to Deluxe's bottom line. With a relatively high tax rate, the implementation of tax reform could lead to increased profitability, potentially attracting more investors and boosting the company's price-to-earnings (PE) ratio. However, the overall impact on the business multiple remains uncertain. Investors are optimistic about the potential tax reform's positive impact on Deluxe's financials, which could result in a higher valuation for the company. The table below summarizes investor sentiment regarding tax reform and Deluxe's potential:
| Investor Sentiment |
|---|
| Positive |
| Optimistic |
| Potential |
| Uncertain |
Investor sentiment regarding tax reform and its impact on Deluxe Corporation's potential is predominantly positive and optimistic.
Frequently Asked Questions
How Many Years Has Deluxe Corporation Been in Business?
Deluxe Corporation, a market leader in small business solutions, has been in business for over 100 years. With its extensive market presence and impact on small businesses, Deluxe Corporation continues to revolutionize the industry.
What Percentage of Deluxe's Sales Come From the Small Business Segment?
Deluxe Corporation's small business segment accounts for 65% of its sales. The company dominates this market, leveraging its high margin business and lack of competition in the niche. Deluxe has developed strategies to specifically target small businesses and expand its digital marketing solutions.
What Is Deluxe's Current PE Ratio Compared to Historical Averages?
Deluxe Corporation's current PE ratio compared to historical averages is unknown without specific data. Factors affecting Deluxe's PE ratio include financial performance, market conditions, and investor sentiment.
Does Deluxe Corporation Have Any Competition in the Check Printing Business?
Deluxe Corporation faces minimal competition in the check printing business, allowing it to dominate the niche. Its high market share and strong position in the industry contribute to its ability to revolutionize small business solutions.
How Does Deluxe Corporation Plan to Grow Its MOS Business and Integrate Acquisitions?
Deluxe Corporation plans to grow its MOS business and integrate acquisitions through a focus on small business and expanding digital marketing solutions. This strategic shift away from check printing aims to balance overall margins and leverage the lack of competition in the niche industry.