Is There Light at the End of the Sales Tunnel?

The 2010 economic forecast calls for a generally slow economic growth rate. Our economy has not collapsed or crashed as much as it’s stumbled or staggered. The question then is: when will it regain its footing? When will meaningful growth resume? No one really knows. Will 2010 be better than 2009? Possibly.

The Conference Board Leading Economic Index (LEI) for the U.S. increased 0.3 percent in January, following a 1.2 percent gain in December, and a 1.1 percent rise in November. Said Ataman Ozyildirim, The Conference Board economist: “The U.S. LEI has risen steadily for nearly a year, led by a financial markets improvement and manufacturing upturn. Consumer expectations and housing permits have also contributed to gains over this period, but to a lesser extent. Current economic conditions have also improved modestly since July 2009, helped by strengthening industrial production, despite continued weakness in employment.”

What this may signal is a continued economic recovery at least through the spring. Alex Hambleton, vice president of sales and marketing at Vanguard Printing LLC (www.vanguardprintingllc.com) in Ithaca, N.Y., agreed.

“We’re definitely noticing an uptick in client spending,” said Hambleton. “Several projects that had been on hold have recently been given the green light. February sales came in over expectations and March is looking good.”

Another positive sign: “Estimating activity is brisk,” said Hambleton. “No one gets each job they bid on but the fact that estimating is busy is a good sign.” One of the negatives he cites however is a continued battle against price erosion. “A lot of companies are doing anything to get the job.”

Parent company Vanguard Media LLC, based in Hillside, N.J., purchased the long-established printing facility in Ithaca in 2006. It is a full web printer specializing in medium-run publications, journals and B-to-B catalogs with ideal run lengths of 25,000 to 250,000.

But for each piece of positive economic news there is a negative one. The weak housing market, unemployment and relatively weak retail activity are a concern. Inflation is subdued at a 2.7 percent annual rate. Most business leaders expect that the Federal Reserve will continue to keep interest rates low and postpone tax increases so as not to hurt any recovery. The high unemployment rate is preventing upward pressure on wages and which is preventing significant rising price pressures.

Progressive firms like Vanguard tend to keep each of their options open in order to grow and maintain sales. The firm, which employs some 250 various workers including its own sales staff also uses independent brokers/agents. “Success in this business is a lot about relationships,” says Hambleton who is active in business groups and encourages steady marketing in numerous forms.

“What sets you apart from the competition is your ability to connect,” said marketing consultant Maribeth Kuzmeski. “Relationships are the real secret to success. If you can build strong relationships and connect with customers and colleagues you will get your piece of the proverbial pie. If you can’t, you’ll be scrambling for crumbs.”

The promise of better printing for a lower price is hard for a customer to resist. While many printers are coached early in their careers to select a niche in which to practice and then concentrate on exploiting it, very few are actually advised on what might be the best way to promote their company.