Evaluating a company's profit is just as difficult as trying to communicate with a letter soup (a combination of letters). Although there are tools, these tools are either too complex or too tricky to use. It is also difficult to filter out methods that can help you and your company assess the benefits from a wide variety of methods. The answer to improving financial conditions may exist in many different ways. Whether it is the cost of serving a particular customer, or the total cost of a job, or whether an investment can be returned, financial tools can help you analyze your best choice.
To avoid becoming one of the statistics, it is necessary to understand the total cost of printing. The printing industry must seek financial improvements from all aspects. For example, when investing in new equipment, it is important to fully evaluate how this investment will change operating costs, rather than just seeking the best equipment prices. Obviously, the calculation of return-on-investment (ROI) can be complete. The analysis of total-cost-of-ownership (TCO) is the key. Today’s investment will obviously impact the cash flow in the coming years.
Michael Thews, the vice president and finance director of John Roberts, believes that one of the necessary actions the printer can take is to find out where company resources are wasted. "You need to get the help of the production line staff to find the most immediate way." They know that those places are wasted because they see it every day. Educating employees on the full cost of their operations is helping themselves.
Hughes said that some of the costs and production of printed products are not directly linked. “We often forget that we can save a lot of money on such costs as electricity and natural gas. You should seek help from a utility company. They will be happy to help you reduce your usage or give you tips to save energy. When it comes to issues, it is very important to include suppliers together."
How to increase revenue
The first step in getting a company healthy is to understand that any industry has a hidden source of wasted money. The second step is to have enough courage to adopt ways of making money that will increase your profits.
To make your company healthy, you must consider at least one of the following:
Best operation and best equipment. A company must manage its labor costs effectively by combining best practices with the most suitable equipment. Sometimes, you can do it just by adjusting or retooling your current device.
The power of the crowd. Peer groups participating in discussions or joining information exchanges can make you a knowledgeable buyer.
Save anywhere. Don't ignore costs that are not related to printing, such as taxes, employee benefits, or utilities.
Dialogue with customers. Tell them how you can improve operations. They will cherish your efforts to increase efficiency.
Different
A survey by PrintBuyersOnline.com found that printers do not know how to tell buyers that they are different from other printers. In the survey conducted in November 2004, 92% of print buyers expressed only their poor grade in terms of their ability to express their own uniqueness. Only 8 percent of buyers think that the printers are performing very well or even excellent. So, even if it is really different, proper communication is still needed. If no one knows, what's the use of uniqueness? And if you don’t know or benefit from the work you do, you’re definitely wasting money and time. You have to make sure that you tell the customer, otherwise do not do it.
These differences can make your company more attractive to print buyers and, therefore, also more profitable. You can place yourself in the position of a service provider, or a printer with high-level capabilities such as screening technology, and you can charge according to your job without having to cut prices. This way, not only can you and your printed matter stand out from the crowd, customers will also appreciate your efforts for the added value of print.
Make sure you tell them all. Remember, all of the above needs time to investigate and manage, but the effort is definitely worth it.