Outsourcing Small-to-Midsize Color Copying Runs

We are an online discount digital printer. Over the years we've refined and streamlined our business into a very specific niche, mainly color copying (including booklets and books). This has allowed us to drop prices to levels once deemed impossible, like say 8 cents per color copy (or less).

Understandably, this makes a lot of traditional printers feel like they can't compete, like they're getting the short end of the proverbial stick.

But a lot of our customers -- don't ask me percentages, but a lot -- ARE those printers. They realize that when a customer comes to them for a color copy job, they can turn around and send it to us. Then they can upcharge any amount they want, turn it around and give it to the customer without them ever knowing the difference. And as long as the upcharge is reasonable, the customers are still extremely satisfied because they're still paying a LOT less than the 49 cents per copy Kinko's charges.

Just wondering if anyone has any anecdotes about how outsourcing smaller jobs to companies like us has worked, or hasn't worked and why.