Manage by the Numbers

A couple of things before we take a few days vacation. First, the annual Quick Printing Top 100 survey is complete and it is pretty grim with sales down for much of the group. Of course, there are exceptions with some companies growing their sales significantly in the face of a cruddy economy. Second, the NAPL/NAQP Benchmarking study is also out and it found the same situation. With this in mind, I thought I would share this email from the Benchmark study author, John Stewart. His observations are pretty much on target. (More info on the study at http://directory.myprintresource.com/profile/10006811/NAPL) “Although the new Benchmarking study reports average annual sales are down by more than 12% during the past two years and that average profits are down as well, that is not what disturbs me the most. “My greatest concern is that so few companies, other than those who participate, seem to avail themselves of the valuable information contained in this key financial report. This report, more than any other produced in this industry, literally provides readers with a blueprint for how to operate a highly profitable printing and copying firm. “The differences in how owners of similar size companies manage their key operating ratios are nothing short of startling. Profitability in the industry ranges from minus 2% to companies reporting owner’s compensation of 25% or more. The ‘Profit Leader’ portion of the study alone is worth ten times the cost of the study, considering the information it reveals. I cannot imagine a printer, especially one who is currently struggling, not being able to significantly improve his or her profitability simply by implementing just some of the advice offered by Larry Hunt’s Executive Summary.”