Here's what your fellow professionals from our LinkedIn group had to say in April.
Should the industry stop operating on credit?
When dealing with larger companies, specifically multinationals, we offer different pricing for 60 and 90 days, to encourage them to pay on time. The issue we had was the larger the company, the greater the payment delay, with a few even changing the terms we offered after the approval to proceed. There is a certain large Australian shopping centre chain we don't even do business with and it was their very poor attitude to paying that: one, we never did business with them again; and, two, we take payment upfront. So thank-you for the lesson learned. There are certain sectors whose turnaround is over a few months and well there is not a lot one can do there. Our turnaround times can be between average five working days and one month for indent. Another trend we spotted was the revolving-door customer who used various companies for their orders and strung us all out as they struggled with their cash flow. Cash up front! I can only pay you once my customer pays after their campaign in three months. So we take payment upfront on 85% of all orders and kept the few very good payers and dropped customers who always failed to pay on time. It paid off for us.
Kevin Rack, owner, Mabuzi
Is it getting harder to deal with banks and insurers?
In terms of dealing with the banks here in the UK, from our perspective as a leading MIS provider the banks are still very 'nervous' about lending (and I include lease companies in this too). Overdraft extensions are difficult to get without jumping through hoops with extra security put in place. We use a finance broker to source funding for our clients to purchase their MIS. Leasing an MIS makes a lot of sense. It basically means you see the return on investment as you're paying for the system – so the net effect is it costs you nothing. For example, our systems start at £42/week – complete – so a printer can easily justify this and see the ROI from the benefits the MIS will bring. It's a no-brainer. What we have definitely seen is a change in the lending ratios. In other words, whereas previously a lender would look at a company's net worth and lend say 5:1 (a company worth £100K could borrow £500K), now the ratios are more like 2:1 or 3:1. Also we have seen the demand for director's guarantees almost become mandatory unless the print business has excellent accounts and is not overextended.
Trevor Cocks, managing director, Accura MIS
Does anyone charge rush fees for urgent jobs?
Sure do! However, these days the rush fee tends to be the 'authentic' price, rather than the discounted price most printers are forced to offer now. I have always told my clients they have three choices: they can have it fast, they can have it cheap or they can have it good… but they only get to choose two out of three!
Michael Santer, managing director, Jamida Group
Have you made any sales through LinkedIn?
We've had a couple of pull-up banner orders through LinkedIn from regional Queensland and we've also managed to get a couple of new clients through Twitter. We don't actually even tweet – we just have our Twitter page linked to our Facebook posts. There are still other forms of marketing that are working better for most companies I'd say, but it's all about having the presence on the web.
Sharon Sewell, owner, Varsity Graphics
Should printers do more to connect with the design community?
Absolutely and without a doubt! At Kopystop, we actively connect with designers, wherever possible well ahead of client orders and preferably at concept stage. This enables our input as a printer; more often we try and get in at the briefing stage. It's becoming a common practice whereby the one design format is being used as a template across multimedia. Print is one of these, and as we all know there are different criteria and file specifications for print compared to web. It's imperative that the print and design communities better engage to collaborate in partnership with each other to the full benefit of the client and industries as a whole. There exists a gamut of crossover between the two, with multiple grey areas with the development of new and interactive media. This is a question which is very close to my heart and one of growing concern to avoid polarisation of both, but rather to induct the two in a symbiotic relationship.
Art Tchetchenian, managing director, Kopystop Digital Print Solutions
Do you have a succession plan?
This is an area that interests me greatly. Much has been written over the past 10 years around this issue and in particular how the 'digital revolution' has impacted on not only the way we go about our business day to day, but also on how it has impacted the retirement plans of so many. As a result it occurs to me that the succession planning, be it necessary through illness, death, retirement or sale, has fallen in a heap. Many just don't want to think about it and many just don't know where to start. There are any number of first steps. It may be a valuation, it may be a dispassionate third party leading through re-energising or re-inventing the business so that value can be improved. It may be an introduction to like-minded businesses (within or outside the industry) that may offer synergies. It may simply be a nudge to have you focus on the necessity to make sure you don't leave chaos behind you in an emergency. The process can be painless and some consultants who understand not only the dynamics and drivers of the industry, but also the financial constraints, set aside time at low or no cost to help kick-start the process. There may even be some government funding to help offset the cost.
Kieran May, director, Printing Industries Association of Australia
What can businesses do to boost their social media appeal?
It's important to listen and find out where and who your audience is. Use social media as an information tool. Define your goals (create more traffic, create relationships, generate positive awareness, etc) prior to engaging. Make sure that you share content that inspires your community such as positive experiences and freebies. People want to feel like they are part of what you are doing.
Clara Geerts, marketing & communications specialist, Copyworld
Will we see more consolidation in the industry?
Excess capacity is wrecking the paper and print industries, and will continue to do so until some hard decisions are made.
Graham Critchley, Paperlinx investor representative
Do you charge extra for additional pre-press services and file-fixing?
Today’s workflows and technology allow us to fix files almost instantaneously in a lot of cases, unlike the old days which definitely merited additional charges. I am not sure that the traditional pre-press houses would support this. Sadly, I would imagine most have closed due to the above hand-holding and 'give-away' support. I would love to see my lawyer adopt the same kind of service!
Kevin Brettell, operations manager, GSP Print
What's the best way to handle workplace disputes?
If it cannot be settled in house this is what the PIAA are best for. Their wealth of knowledge and experience in dealing with these matters is second to none.
Tony Perini, General manager, Intoprint
Was Rupert Murdoch right to say newspapers will be all but dead in 20 years?
Yes, and he knew it five years ago but couldn't afford to say so.
Paul Mason, head of school, Wiseman Institute of Applied Learning
What do you love about PacPrint?
Apart from it being the most comprehensive exhibition in Australasia for the printing and graphic communications industry, I'd say the PacPrint forums. This year's theme is 'An Industry in Transition'. PacPrint 2013 will also feature new business improvement workshops providing ideas and information that can optimise your business performance.
Patrick Bell, head of marketing, Reed Exhibitions
[Related: What your fellow professionals said in March]
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