Printing Capabilities

[CBSprinter]

Guys, I need your advice. I've been print shop manager now for almost 2 years, and the upper management guys have never really been in the shop. Things are good in my area, but they do want to cut cost and bring more jobs in-house..which is great. I currently have 2 OCE VP 4120 w. BLM booklet makers. 1 KM C7000 and soon to have a KM 6501. How should I present the capabilities of the print shop? Showing examples? Just advice from you guys would be appreciated! Meeting is next week and I'm already nervous. TIA

 

[MailGuru]

Showing samples is good, but, I would think the "upper-level guys" are going to be more concerned with bottom-line profitablily rather than creative capabilities. Along with the samples, see if there is any way you can demonstrate the savings your in-plant provides. Take some jobs that you have performed over the last couple of months and request quotes from area for-profit printers. Then provide a comparative report that shows what it costs to print those jobs in-house rather than outsourcing.

 

[CBSprinter]

Thanks for the information. Yeah, I will definitely have samples to show off. The only numbers I know to give is adding the paper cost, click cost and adding them together to get total amount. Correct?

 

[MailGuru]

Well, yeah, that would be a simplified approach. However, if I were one of the "upper-level" guys, I'd be looking top-down from a birds-eye view. I know you are the manager of the print shop, and, it's possible that you don't have access to all the real figures, but, there is a monthly cost associated with keeping your shop going that is in addition to the paper and click cost: Machine lease payments, mantenance, labor costs, electricity, proportion of rent or mortage payment based on square footage of your shop, etc. If you can get a handle on these costs, and then divide that out by the average number of pieces you produce in a month, this would yield a good "apples-to-apples" comparison of in-plant versus outsourcing. Even if you can get close to an outsourced price, there is value in quick response and convenience of having it printed in-house.

 

[onwsk8r]

I'm unclear on the question (but I have lots of experience dealing with uppers).. You just have to make a presentation on capabilities? Not trying to get them to spend more money or anything?

I would push the booklet maker hard.. We have inline bookletmakers at my shop and man I love it when saddle stitch jobs come in and I don't have to do anything. Tell them they can charge for this service but it doesn't cost a dime!

 

[Craig]

Tell them they can charge for this service but it doesn't cost a dime!

NOT! - MailGuru is on the money, you MUST account for the TOTAL cost to operate the inplant. I would also be a little leery on their request. You don't know if they have been approached by another vender that is telling them they can do it cheaper. Maybe they are asking you to build your own coffin so to speak. Like Guru said you need to prove your value at the same time you are showing them costs.

 

[CBSprinter]

Basically as I've been told, a certain dept prints a lot of stuff outside but our CFO wants to save money and print more in-house. Reason for showing off machines and capabilities.

 

[MailGuru]

MailGuru's Rules Of Corporate Engagement

Rule #34: "Never expect C-Level executives to level with you about the reasoning behind any given request"

It's not that they are untruthful, mind you, they just seem to be executing an agenda that they believe doesn't really concern you.

In this case, however, this may just be an exception to Rule #34.

If he or she is the CFO, he/she already knows, down to the penny, what it costs to keep the inplant operational. So, no need to put those numbers together we discussed earlier. Either he/she is (a) truly on a crusade to save money by understanding your capabilities and encouraging the non-participating department to start running their work through you, or (b) he/she is concerned about the cost of keeping the inplant operational and is looking for ways to mitigate expenses by running more work though the department. In either case, it looks like the CFO is coming down on the fence tilted in your favor, so, RELAX.

Give the 50-cent tour, show some samples, let him/her see the machines in operation, and, above all -- SMILE!

 

[CBSprinter]

Thanks for all the information, MailGuru. Any other ideas/thoughts is greatly appreciated!

 

[MailGuru]

Love to, but, I would need to know the type and nature of the business that the inplant serves. Most inplants run digital for short-run, print on demand, applications. In other words, I'll bet your jobs are predominantly static art with a little variable text.

The true value of digital print lies in the power of variable data/variable image. For instance, if your inplant serves an educational institution, and you are printing mid-term exams, instead of printing 3 variations (or versions), as 3 different passes, of a test (to prevent cheating by copying from the person next to you for instance), you could print all 3 variations on 1 pass and save the collation costs at the end of the job.

Take a look at the business your inplant serves, and suggest ways where variable digital can cut corners and save the company money.

Also, if the business is not providing enough volume to keep your inplant busy, look for simple ways you can provide digital print business to area printers who do not have digital. Are there opportunities here for your department to begin to generate additional revenue streams?

 

[CBSprinter]

My company provides products for schools K-college. Living, plants, dissection, etc. We in the print shop print the teacher's manual, student guides, etc etc. Runs of 100 all the way to 5000. Mainly booklets.

 

[MailGuru]

That's a toughy.

You're kind of an inplant, that's really not an implant, because, you actually do sell print for money. Although the print you sell are components of a finished product (teacher's guides, workbooks, etc.). This changes things a little.

So, in reality, when a certain department elects to outsource their print instead of having it printed in-house, it actually reduces the profit margin on your end product.

I would start thinking along the lines of using the power of variable digital print to produce new revenue streams for the market you already have. For instance, in order to enhance reading skills for early elementary ages, a teacher or school might order some simple large-print children's stories. Now, if the person ordering can send you an excel file of the children's first names that will be reading the books, you can now produce personalized children's stories that will hold their attention longer and get better results.

I'm sure, if you sat down and really thought about the products you produce, you could come up with many other examples.

I hope this helps, and, I hope your meeting/tour goes well.

-MailGuru