Thanks to John Grogan
It has brought a lot of much needed debate on the print industry.
To answer, I hope in the correct manner:
Which areas of your business are profitable/loss-making?
The printing side of the business is a total loss making enterprise this year, we fix our prices for 12months, in that time our costs have went up by 40%, as such has wiped out our profits on both the litho and digital side.
The profitable side of the business has been the distribution of our customers goods, we also sell our customers products direct to the end user which are mainly schools and has been very rewarding.
What percentage of your work do you make a loss on?
Only on the print side which now represents around 40% of our turnover.
How will you cope with the current economic climate? (muddle through, downsize, acquisition strategy, organic growth strategy)
Thank GOD, we have two great customers, all the work is for the education market, so we're unaffected by the current economic climate, my only worry is the continual increases on paper and supply costs, and the possiblity that our two customers may pass away - both over 70!
We have also taken on a new customer today - our first in four years - which has switched from a print management company to ours based on our service not price, this is our first retail based customer and we have great plans to help develop the company.
I'd also like to mention that we we're £70,000 more expensive than the print management firm.
Have you invested in new technology in the last six months/currently investing/last two years/last five years/intend to in the next year/no investment plans?
Our digital equipment gets replaced every year without question, when we purchase equipment, we aim for payback well within the year, as such we don't have top of the range xerox/hp/heidelberg but we can print upto 140 pages per min. colour and 180 pages per min. B&W and the purchase price for top quality colour and B&W at this speed - less than £12,000!
Our litho machines, we aim to have for another 5 years at least, a small increase in speed doesn't warrant a £100,000 + investment.
We have also looked into bringing the print finishing back in-house, we tried this four years ago. After getting quotes for new equipment that were suitable for our needs, we've found it's not worth the investment, we're too small to warrant a £100,000 spend, to save £4-£5,000 a year. So a big thankyou to Kevin and staff at Sprintfinish - Sunderland.
How much of your business is domestic/international?
This is something I'm very proud about approx 75% is domestic 25% international.
What percentage of your business is with print managers/clients direct/trade printers?
100% Clients direct, we used to be a trade only printer, providing services for print managers and other local printers, but after I had to mortgage my home to keep the business afloat, I realised I needed to change, thanks to the staff we are now a very profitable business, I've repaid my mortgage, we're very profitable, our TWO customers, well what can I say but they had a lot of faith in us to deliver the goods and we did, and we have been rewarded in that one customer had a phone call from a rep at Pindar who she promptly told to P*** off and never to phone again.
Company size? (staff/turnover)
Staff 4 and a 1/2, turnover aprox 1.2mill
Would I sell my business?
I'm now retired, the firm is trading under the management of the staff, although I still work 40hours per week, helping them out! The staff are the bigest asset without doubt, they all work 100hrs+ per week in our rush periods of Sept, Oct, March and April.
I was given the chance to sell the firm but when I looked at the buyers credit history, there wasn't a chance in hell that I would put the employees at risk. Whilst everything is still in my name, I consider it owned by the employees, my only role is to ensure that people get paid on time and that all the accounts are in order.