Last month we looked at 10 years of Printing Industries of America (PIA) Annual Ratio Studies thanks to PIA's Ronnie Davis and Steve Kobey. Specifically, the history of Value-added resulting from Manufactured Sales minus Direct Order Additives (materials and buy-outs) was viewed. Values-added by the Profit Leaders (top 25 percent of reporting firms) were compared with those of the lower 75 percent and found to be within a half percentage point of each other over the years. Conclusion: It isn't pricing that distinguishes between the high and low groups. You could multiply the DOAs by 2.75 and have a reasonable Target Selling Price for either
Steve Kobey
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