Industry identity Bob McMillan says printers are wasting money buying new presses and should focus on their bottom line if they want to stay in business.

McMillan says printers are spending a lot of money on new kit, when they could buy second hand, make more profit, and use acquisitions to grow their businesses.

“Printers get mesmerised by new Heidelberg printers and spend hundreds of thousands of dollars on new equipment,” he says.

“I don’t get mesmerised by new printers, I get mesmerised by profits.

“You can make a lot of money out of the printing industry if you own all your equipment, land and shop.

“It is not about spending large amounts of money on buying things that you don’t need.”

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McMillan, known as ‘second-hand Bob’ when he ran McMillan Printing before selling to private equity-backed Blue Star in 2007, says buying pre-owned is still the way to go.

“I have never brought a new machine in my entire life, and I have made more profits on a second hand printer than someone else would on a new machine,” he says.

“There are several ways a printer could buy a second hand machine, they could go overseas and look more efficiently.”

McMillan recently sold his Sydney Pennant Hills home for 40 years for $42m, and says smart investments – be they real estate or printing gear – pay off if you are smart.

His latest investment is back in print, lending money to Sydney Allen and planning to move it into his Granville site three months form now.

“I am an investor and I invest in projects that I feel will benefit my company. Printers these days are too concerned about new toys rather thinking about how they can grow their business,” he says.

“Selling my home is proof that you can be smart and invest in things that will later on lead to big profits.”

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