Why does anybody invest in printing now? in the uk margins have shrunk down to the level where the companies without a clear business plan take on work at or below cost just to gain turnover. This is a crazy situation because management wont go back to basics an see where they make money, after working in the comercial sector for severn years and watching the company go downhill because they did not go for the right work, they went in at cost minus 10% to gain local goverment work which at best could only ever make small margins as over five printers tendered for every job, this might work if every quote turned into a job, but it was as low as 1 in 15 jobs which went live. money was leaking from everywhere and when push came to shove the production staff were made redundent as the estimation/office staff were busy chasing that 1 in 15. My point is do you have a business plan which actually justifies the investment ? do you want to invest a quarter of a million dollers to make ten thousand a year? and how much give or take is in your business plan ?if your sales fall short by 20% or you have a customer go down will you folllow?
If you have a cautious business plan which can make money on worst case senarios than there may be money to be made, but the key if finding a nieche market which gives you an advantage over your competetors before you start.
Paul
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