Enduring The Economy -- Staying Afloat
“Get rid of unprofitable accounts by raising your prices,” he adds. Where printers fall into a trap is when they take a job mainly because it contributes to overhead. There’s a certain amount of truth to that. Where you get into trouble is when all the jobs you produce are unprofitable, but contribute to your overhead.
“I’m obviously painting a picture of the extreme,” he says. “But this is a very dangerous time from the standpoint of a printer being willing to do that because he thinks he’s helping himself. He might do better to cut his overhead.”
Another step printers can take is to re-examine their supply chain, according to Lamparter. Why not, since the trend for several years has been toward print buyers reducing their field of print vendors. That may not entail dropping vendors, but it could result in savings.
“The fact is, if you don’t ask for a price cut, you’re not going to get one,” Lamparter says. “You need to have a more astute procurement activity than you’ve ever had before.” PI