Is HP competing for print work?

Been following the news as of late where HP launched MarketSplash – a online program providing design, print, and fulfillment services to small business. The program is designed to provide the industry’s lowest prices and fastest delivery on brand marketing and promotional products. HP claims the targeted audience is companies that want to look like the big guys without the resources of the big guys. Reports indicate that HP is not in the print provider business and lets its PSPs (print service providers) handle the printing and fulfillment portion. I guess this works if you are one of the chosen PSPs.

I am not sure what I think about this quite yet. Good opportunity for small print shops to go after new clients with the new resources. However, if you are not an HP PSP you may have to lower your prices to compete. Think HP will lower the print costs to help offset? Perhaps HP should stick to developing the technology and let printers develop the business?