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Client Reports Digital vs. Offset Sales
by John Stewart - Monday January 9, 2012By John Stewart One of my long-time clients contacted me the other day with some info his manager had gathered. According to the memo, sales in 2011 had increased eight percent over 2010, and were the best sales of record. Most interesting of all was the manager's report that, for the first time ever, sales from digital copying (31.8 percent) had slightly exceeded those coming from offset printing at 31 percent. Since we will be conducting a new Operating Ratio Survey within the next couple of months, I will be extra curious to find out if this trend is representative of the industry. I suspect it is, but I can't be sure until I analyze the numbers. If you have any similar data you would like to share, I would like to hear from... -
Trade Association Hypocrisy
- Monday January 9, 2012By John Stewart In November, Timothy Andrews, president of the Advertising Specialty Institute (ASI), issued a news release attacking President Obama's recently issued mandate to cut 20 percent from federal agency spending on "plaques, clothing and other unnecessary promotional items." I'll bet if you had interviewed the officers and members of this association just two weeks ago about the federal budget you would have heard almost a unanimous chorus suggesting or demanding that the government needs to reduce spending across the board. So what happens when the President takes such a move? ASI issues a news release pleading for its members to take up arms and fight this move by the President. The ASI news release said, "We are... -
Two Valuations: Polar Opposites
- Monday January 9, 2012By John Stewart I have sitting before me on my desk valuation folders for two different printing firms. One is green and the other yellow. The colors themselves don't mean anything, but the contrast between what they each contain inside is simply shocking. I finished both valuations late last week. The Green Folder represents a company projected to do almost $700,000 in 2011. Two years ago their sales were $820,000 but the drop in sales doesn't concern me. It is typical in this industry. What does concern me is that this company's final valuation came in at less than $50,000! That doesn't mean they can't sell the business for more or that the customer list itself might have a higher value, but from a strict valuation standpoint...
