Welcome to ASK ROCK, a monthly advice column where industry expert Rock LaManna will answer your questions on topics such as: key financials for business, and how it can lead to profitable organic growth, M&As, strategic alliances, succession plans, and exit strategies. He will also talk about leadership and present family business case studies.
Do you have a question for Rock LaManna and the LaManna Alliance? Submit it here.
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Dear Rock,
Like many commercial printers, I’ve struggled since the recession. I’m in a cost-cutting mode, and I’m wondering how I can save money without sacrificing quality?
This is a question that comes up, time and time again. Before I give you a few suggestions, let me first advise you that the top priority is to ensure you are in the right frame of mind as you move forward: You need to think growth.
Too many commercial printers are still snake-bit from the recession. They fear investing in their business, looking for new avenues of growth, and thinking outside the box (and their expertise).
Have you considered an alliance with a printer that specializes in converting? Have you thought about focusing on becoming a full-service marketing agency, or at least offering additional services? Have you looked at hiring an elite sales team to help expand your reach?
Cost-cutting measures should not be a strategy for survival; they should be part of your daily operations. You should always be looking for ways to “lean up” the operation. But they should not be how you generate profit: Only growth can get you moving in the right direction.
That being said, here are two areas to consider:
Integrate lean operations into your business. Have you ever analyzed your processes? Are there procedures you’re using that are wasteful, or inconsistent? Lean operations reduce wasteful processes, moving you toward more of a quality-based operation. Take a look at some posts I’ve put up on my blog for some ideas on lean operations.
Join a co-op. An ideal way to immediately cut costs is to join a printing co-op. It’s simple: You join the co-op, in which other members pool their purchasing power, and you receive discounts on your group orders. It’s an effective way to immediately knock 5-15% off your bottom line. Full disclosure: I have a relationship with two printing co-ops that work with the printing industry – IPW and FLAG. Here’s a link to an article on the subject. If you’re interested in talking with FLAG and/or IPW, contact me and I’ll set up a meeting.
Rock LaManna is the President and CEO of the LaManna Alliance, a business advisory and consulting firm that helps printing owners and CEOs use their company financials to create successful strategies. He blogs regularly about family business solutions for the printing and print-related industry.
