“The depth and breadth of that data provide invaluable analytics that are helpful when determining how to price and bid on GPO work,” she said. “Since low bid typically wins with GPO, printers competing for the work must understand GPO’s precise requirements as well as their own printing capabilities.”
Once a printer starts winning GPO work consistently, it can expect to increase its profitability from an industry average of 2%, before GPO work, to 14% or more afterwards. Snider said those percentages are based on a printer working with an experienced GPO bid service firm, identifying opening production capacity and discounting prices to fill non-productive, non-revenue generating schedule openings.
Winning GPO work consistently is key, because unless GPO is developed as a secondary market production utilization cannot be increased from a print industry average of 70% and dwindling to full utilization of 90% to 95% by filling what would otherwise be down time.