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      Print Decorating, Binding and Finishing

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        Business Strategy

        Communicate and Prosper

        May 29, 2014

        by Helen Wilkie, MHW Communications

        How much has poor communication cost your company in the past 12 months? Chances are, you have no idea. Chances are even better it’s a lot more than you can afford.

        But you won’t find the numbers in the financial statements or year-end departmental reports. Nothing shows up saying, “lost productivity due to miserable meetings” or “missed business opportunities through sorry selling skills” or “employee quit because there’s no communication around here.”

        Why? Because most people aren’t sure what communication really is.

        Consider this: When companies conduct internal needs assessments, communication virtually always surfaces near the top of the list. But, if you ask 10 people who put it on the list exactly what they meant, you’ll get 10 different answers. People often can’t pinpoint the problem – they just have a vague feeling communication isn’t happening. Unfortunately, this vagueness relegates communication to the bottom of the action list.

        Truth is, communication isn’t some warm and fuzzy “nice to have.” It is nothing less than the lifeblood of your organization. What I call applied communication is written, spoken and non-verbal interaction among people in order to get things done. It takes co-operation to create a product. It takes collaboration to approach a new market. It takes teamwork to implement a strategy. It takes this applied communication to oil and run the machinery of business. And, if that machinery breaks down – as it often does – a great deal of money is lost. It’s in this area, applied communication, that we need to look for the financial drain.

        Loss of time

        What does your time cost the company for each hour you are at work? A good rule of thumb in calculating hourly cost is: annual salary divided by 2,000 (based on 50 40-hour weeks). When you know this figure for your own time as well as that of your staff, you can begin to calculate the cost of applied communication at work.

        Regardless of its purpose, a meeting is an exercise in applied communication: you speak, you listen and you interact. I’ve never met anyone in business who has not complained about meetings: too many, too long, too boring. I would add to that: too expensive.

        Consider meetings that are supposed to last an hour, but somehow expand to use up most of the afternoon. Calculate the hourly cost of total participant time and multiply by the length of the meeting – and keep in mind that the higher level the participants the more expensive the time. The result may not sound too alarming, until you consider how many of those meetings take place in your organization every day, every week, every year. Do the arithmetic.

        Loss of business

        Sometimes salespeople know their “pitch” so well that they totally ignore any input a prospective customer might give them. They barely shake hands and sit down before they start talking. They blithely prescribe their product or service as the cure for a problem, without even finding out if such a problem even exists.

        But an effective sales process is, in fact, a conversation, a two-way exercise in applied communication. Done poorly, it can result in lost sales and missed opportunity for ongoing business relationships.

        Customer loss doesn’t happen only in the sales process, but also can be spurred by an inept “customer service” exchange. When someone calls to complain, the client relationship is at a fragile point. It can be repaired through the right message well delivered, or broken beyond repair by poor communication. When we consider the total lifetime value of a customer relationship, we truly can appreciate the real dollar cost of poor communication.

        Loss of people

        Whatever people tell their bosses about their reasons for leaving the company, exit interviews often tell a different story. One of the most common reasons cited is that they don’t feel anyone listened to them.

        How much then does it cost to replace them? Studies give a wide range, from a low of 25 percent of salary, plus benefits, to a whopping 150 percent. Employee replacement represents yet another huge cost that can at least sometimes be charged to poor communication.

        By improving the way people (and I mean people at all levels) interact in order to get things done, we can increase productivity with its attendant positive impact on the bottom line.

        Helen Wilkie is a professional keynote speaker, workshop facilitator and author specializing in communication at work. For more articles and other information, visit www.mhwcom.com.

        Responding to Print Industry Changes

        February 28, 2014

        by Si Nguyen, Duplo USA

        How is Duplo responding to a smaller base of potential customers? Has it curtailed equipment development in any way?

        When Xerox introduced the first iGen model, we realized big changes were coming to the printing industry. Fortunately, at that time, Duplo had already begun developing its finishing line to accommodate the future needs of the industry, which are for shorter runs, faster turnaround times and on demand digital print finishing. While print volumes are decreasing, print is not going away. Focus now is more on value-added finishing, and Duplo digital color finishers have fortunately fit the needs of these trends. While the number of commercial printers has decreased dramatically these past few years, we have interestingly seen an increase in companies from different sectors that are bringing their printing in-house. Much of this trend can be attributed to the more affordable costs of digital printing, along with more user-friendly and automated equipment for less experienced operators.

        Why is automation so important with the current state of the print industry?

        With the impact of electronic technologies on print volumes and challenges to the printing industry, productivity and workflow efficiency is even more crucial in order for companies to survive. Highly automated equipment increases productivity with shorter set-up times and changeovers, requires less manual labor and shortens turnaround times, thus increasing a company’s bottom line. With more affordable digital printing solutions and increased finishing equipment automation, companies are increasingly finding it easier and more profitable to bring their printing in-house. Highly automated and user-friendly finishing equipment requires minimal operator experience and enables businesses to finish jobs more quickly and profitably.

        With “threats from electronic technology alternatives” growing, what has Duplo done to position itself – and its customers – for shrinking print volumes?

        Electronic technologies have definitely impacted print, yet finishing opportunities still exist in areas such as high-quality, personalized applications. Our wide range of finishers (such as slitter/cutter/creasers, die cutters and UV coaters) add extra value to print and finish a wide range of specialty applications, such as VDP direct mailers, which integrate well into cross-media marketing campaigns.

        What advice do you have for binderies as they evaluate business models and equipment options in the next few years?

        One suggestion we can offer to binderies is to always consider automation when researching equipment. Look for devices that can offer more than one function. Compact devices with multiple functionalities can be operated in smaller spaces by a single operator and would be a better solution versus running several separate devices. Searching for equipment that produces less waste and offers higher productivity also is recommended. In addition, consider connecting the finishing device to the press. Automation is not just for changing paper sizes. For Duplo, automation also means being able to integrate with a printing device either via JDF or barcodes in a near-line capacity. Automation in today’s business model needs to be at an entirely different level. Binderies have to be able to connect the entire print production, from prepress to postpress, without any touch points and produce jobs automatically.

        Thank you to Si Nguyen, Duplo USA, for responding to these questions. Learn more about Duplo’s offerings at www.duplousa.com.


        Related Story

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          NPES provides insight into the challenges facing postpress equipment manufacturers.

        Tax Foundation Ranks Best States for Business

        December 13, 2013

        Wyoming, Florida and Indiana rank among the 10 best states for taxes on business, while companies in states like New York, New Jersey and California must struggle with the worst tax codes in the country, according to the newest edition of the Tax Foundation’s State Business Tax Climate Index.

        Several states have moved in the rankings since last year, with Texas dropping out of the Top 10 for the first time, landing at No. 11, and Virginia and Kentucky both falling three places to No. 26 and No. 27, respectively. On the positive side, Arizona climbed five ranks to No. 22 and Kansas shot up six spots to No. 20. Smaller changes were noted in several other states.

        The State Business Tax Climate Index, now in its 10th edition, collects data on over a hundred tax provisions for each state and synthesizes them into a single, easy-to-use score. The states are then compared against each other, so that each state’s ranking is relative to actual policies in place in other states around the country. A state’s ranking can rise or fall significantly based not just on its own actions, but on the changes or reforms made by other states.

        The Top 10 states in 2014 are Wyoming, South Dakota, Nevada, Alaska, Florida, Washington, Montana, New Hampshire, Utah and Indiana. The 10 lowest ranked states are Maryland, Connecticut, Wisconsin, North Carolina, Vermont, Rhode Island, Minnesota, California, New Jersey and New York.

        The Tax Foundation is a nonpartisan research organization that has monitored fiscal policy at the federal, state and local levels since 1937. For more information, visit www.taxfoundation.org.

         

        Management: Energize to Optimize

        November 15, 2013

        By Jack Daly

        We can’t expect different behavior than what we offer as an example. “We are the message” in our companies.

        Business leaders today must develop ways to thrive during times of constant change. Below are 10 specific actions designed to gain peak performances from our most important resource – our employees.

        Never before have we seen companies put so much pressure on their employees to work long and hard. John Hinrichs, president of the consulting firm Management Decision Systems, observes that “10 or 15 years ago, we used to talk about job enrichment. Now we talk about job engorgement.” Reasons for this stress-inducing tendency include the following:

        • Corporate restructurings that have wiped out layers of managers without reducing the amount of work they used to do
        • New technologies – which eventually will lessen the need for supervision – currently are causing tough transitions for managers and employees
        • Increased competition coming from both large, efficient players and niche opportunists

        Our challenge as leaders/mentors is two-fold. First, we must energize our associates so they can optimize their performance now. Secondly, we need to maintain balance and perspective in our own lives in order to have a proper working relationship with our associates.

        You are the message

        Communication is based more on action than on words. If we come in Monday morning out of sorts, walk straight to our office without saying “hello” to anyone and then shut the door – in what manner will our associates answer the phone that morning? We can’t expect different behavior than what we offer as an example. “We are the message” in our companies.

        Here are the 10 things to think about and then proactively implement. If you think some of these 10 “energizers” need to come from the top of your organization to be successful, we remind you that leaders start where they are. Do these on your own, and then see what happens around you.

        1. Energizers set direction for their units by writing quarterly mission statements. As part of this process, the team commits to established values. Enthusiasm is generated within departments as they formulate their shared missions. Revising those statements quarterly rekindles that energy and commitment, while also providing an opportunity for each person to develop appropriate short-term goals. Planning’s value is in the process, more than in the plan itself. Once your associates have “bought in” to your shared mission, you’re on your way to success!
        2. Energizers truly listen and thus are plugged in to reality. They are both open and inquisitive, and their search for ideas is never-ending and boundless. Useful suggestions come from competitors, suppliers, customers, front-line associates, trade groups and your own mentors. Don’t assume that listening is one of the things you do best. Our booked calendars, busy travel schedules and constant phone calls don’t help us become better listeners. And, as an opportune occasion for listening occurs, too often we are talking. So, ask yourself, “How much time did I spend truly listening?” Good listeners practice “zero-based thinking,” which requires that we forget the way we’ve always done things, and instead look at situations in new light. One way to judge how much we value input is to figure the amount of time we spend in our offices, sitting safely behind our own desks. But, energetic new ideas emanate from where things are happening. Most of us, thus, need to spend more time in the field. You can start this process by talking with your customers and then acting on their suggestions.
        3. Philosopher John Gardner refers to what he terms “tough-minded optimism.” Energizers possess such a spirit, which combines hope and realism as the driving forces in building a business. Again, focusing on customer needs helps make this happen. A leader is more interested in serving his customer than in worrying about what the board of directors will think. “If it’s meant to be, it’s up to me” is the rallying cry for energizers who, nevertheless, remain prudent and balanced They neither are foolish dreamers nor impassioned extremists. Instead, leaders are positive cheerleaders who each day provide a message of optimism for those with whom they work.
        4. Energizers forever are thinking about and articulating their company mission and values. At least once a year, give a speech reinforcing what you and the company stand for. Nearly every successful leader relates the concern of repeating the same message too often. Yet his or her supporting team usually feels they can’t hear such a message often enough. Providing an over-all mission statement helps each unit to construct its own specific mission. Studies have shown that 74 percent of employees rank information sharing as very important, whereas only half of all executives felt this was what their associates wanted.
        5. Where procedure manuals give rules, company stories offer morals. “Storytelling’s power is timeless,” says author Tom Peters. “The marketplace is demanding that we burn the policy manuals and knock off the incessant memo writing; there’s just no time. It also demands we empower everyone to constantly take initiatives. It turns out stories are a – if not, the – leadership answer to both issues.” Stories, which in a simple manner describe who we are and what we do, influence thinking and action more than procedure manuals do. Storytelling is one of the oldest forms of communication, and the energizer turns it into a powerhouse management tool that works in both large and small companies.
        6. Energizers are bureaucracy busters. “It’s no wonder we manage our way to economic decline,” says Stanley Davis. “Our managerial modes don’t suit today’s business. We still are using the model GM founder Alfred Sloan developed for organizing corporate America back in the Twenties. As a result, we have industrially modeled organizations running post-industrial businesses.” Energizers know the value of the motto, “If it’s not broke, break it.” They work outside normal rules, and thus stand out in the eyes of customers and their own associates. By unleashing your creativity, you can spark the energy within your organization. Even simple changes can mean a great deal to your unit or company.
        7. Great benefits can be found in delegating without abdicating. Remain accountable for your group, but don’t allow a decision to be made at a higher level in the organization than it needs to be. Your associates know the daily specifics of their jobs better than you do. Foster an environment in which they design their function in a framework consistent with the company mission and values.
        8. Energizers understand the Pygmalion Effect. People usually accomplish what they believe they are expected to do. If we have high expectations as leaders/mentors, our associates probably will show excellent productivity. Ambitious expectations are built by energizers who believe in their own abilities to train and motivate their associates. Simply being demanding is insufficient. Your associates actually will rise to the level of your trust or fall to the level of your mistrust.
        9. Energizing and leading people are more powerful than managing a process. By building trust with associates and customers, a leader/mentor puts together the team described in his or her mission statement. Effective leaders usually are appreciated for their interpersonal skills, rather than for their managerial abilities. People care more about what’s in a manager’s heart than about what is in his or her head.
        10. An energizer surrounds himself with associates who are positive and realistic, rather than negative. A “can-do” attitude characterizes the energized leader/mentor. It is seen in the unwillingness to take “no” or “it’s never been done before” for an answer.

        To make this possible, an energizer’s mission statement should include minimum production standards and continual training of staff. You also should spend most of your time assisting your best producers, rather than motivating and supervising marginal performers. Good recruiting practices are the basis of a productive office.

        In addition, consider hiring an administrator to handle your routine paperwork, so that most of your efforts can be given to increasing production.

        The characteristic of energizers who move organizations to their highest levels of performance is that of a dreamer. Fred Smith’s college term paper was graded “impractical” – but he used it as the basis for building Federal Express. Steven Jobs acted on his dream of having personal computers in every home and classroom.

        Energizers manage their dreams; and each of us has a like capacity with regard to our business. If we resist change, we will only fall further behind. If we merely go along with change, then we will just keep pace with it. But, if we create change, we will be the ones who lead it.

        Jack Daly brings 30-plus years of field-proven experience from a starting base with CPA firm Arthur Andersen to the CEO level of several national companies. Daly is a proven CEO/Entrepreneur, having built six companies into national firms, two of which he subsequently has sold to the Wall Street firms of Solomon Brothers and First Boston.

         

        The Press Release: How and When to Promote Company News

        October 13, 2013

        by Dianna Brodine, PostPress

        As the editor of a magazine, I have a vested interest in promoting a well-written press release. It makes my job much easier when companies send me their news, rather than requiring me to seek it out.

        I’ll tell you a little secret. Media representatives rarely will “seek it out.”

        Companies that promote themselves are the ones that receive publicity. A press release catches the eye of the media, alerts them to new developments within the industry and serves the beginning of a story on a silver platter. Yet many companies don’t take the time to send a press release when significant events occur, and those companies are missing out on a simple – and free – marketing opportunity.

        Why send a press release?

        1. Establish a relationship with media outlets as a willing and educated source of information.
        2. Gain visibility with prospective and current clients who view industry news outlets.
        3. Increase a company’s online presence through the media’s use of web links.

        When should a press release be sent?

        If these events occur, they could trigger a press release.

        1. New hires in top positions
        2. New equipment acquisitions
        3. Facility expansions
        4. Product or service offering expansions
        5. Local, national or industry awards and recognitions
        6. Internal company benchmark or goal achievement

        How should a press release be formatted?

        There are a variety of press release templates available on the internet, but essentially a press release is a simple document with four parts.

        1. Descriptive headline. Explain concisely what the press release is promoting.
        2. One to three paragraphs describing the event.
        3. Boilerplate. This is a news industry term that refers to a block of text that can be used repeatedly to convey information. In the case of a press release, a boilerplate paragraph should be used to provide brief background on a company and its capabilities.
        4. Contact information. Provide a phone number or email address for the primary contact person should a media representative require more information.

         

        The End User – Fair Game or Game Over?

        August 21, 2013

        by John Mascari and Kelly Mallozzi, Specialty Finishing Group, Inc.
        Alliance Publishing looked for a bindery to work with directly on its student agenda project.

        There seems to be a serious debate going on in our industry. The question is this: “Should a postpress company sell to end-users (or, as we have always known them, the printer’s customers)?

        Historically, most postpress companies have taken a hands-off approach when it comes to dealing with those industry service providers that have commonly been known as the printers’ customers. Here at Specialty Finishing Group (SFG), however, we think end users want and need to have the opportunity to work with us directly.

        Let’s give credit where credit is due. Printers give their customers great guidance on what is happening in the print world. Without print sales people, end users wouldn’t know about things like augmented reality, digital services or new security printing options, just to name a few. Because our relationships with printers are so mutually dependant, we need to return the favor.

        It takes a community to keep print viable. There are many unbelievable finishing techniques available that make mail pieces stand out, help books jump off a retail shelf and give presentation folders that extra edge, but end users won’t hear about them unless someone specifically shows them what is possible. Our ability to share this specific knowledge with printers and their customers is vital to ensure the best decisions are made when deciding how to get a project done. Remember that the needs of the end users drive technological advancement for us and for the printers as well.

        Postpress drives the bus

        There are times when postpress operations are the driving force in the “end user game”. Specialty Finishing Group has established customer relationships in which SFG was chosen as the finishing partner as part of a separate process, rather than in tandem with a printer. One of these relationships is with WebbMason, one the country’s largest marketing services organizations. While WebbMason is not the end user for the Catholic Church Extension calendar project, the marketing services firm works directly with SFG, as well as working with the printer. The complexity of the project required that WebbMason choose a bindery that could adapt quickly to an ordering process that changes at a moment’s notice.

        The Catholic Church Extension calendar project encompasses nearly three million calendars for more than 5,000 churches located across the US. According to Paul Kill, WebbMason account executive, the complexity of managing more than 5,000 unique orders required a bindery partner whose production system could link directly with the ordering system, which has the ability to take orders for the calendars 24/7. SFG developed a custom solution to process data on a daily basis, updating the system to track a project’s progress through production.

        “The ability to check on the status of an individual order at any moment and see where we are in the manufacturing process allows us to be proactive in our communication with our customers, which is critical in a high-transaction environment,” said Kill. “Having that information in real-time provides us flexibility in terms of what we are able to do for a customer at the last minute, while at the same time minimizing the financial impact that traditionally is associated with last-minute requests. At the end of the day, it is really about our ability to better serve our customers,” said Kill.

        For WebbMason, the advantage is that modifications can be made on the fly while SFG is binding 60,000 calendars a day. These calendars can have last minute changes – date changes, changes in shipping information or even changes in the data contained within the calendar itself. It was important that the bindery’s production system be able to handle the customization and modifications, while also reporting the changes back to the data management company. SFG regularly works with the printer to make sure everything runs smoothly, working out issues behind the scenes, which frees WebbMason to stay focused on the big picture.

        At Alliance Publishing, the company publishes customized student agendas. Greg Pappas, principal, said, “In the beginning, this project was produced by a printer who dealt with the binding for us as well. But, as we grew, we moved the printing to a web printer and made the decision to work with a bindery directly. As we made our decision, we chose not the cheapest, or the closest, but a partner we could trust to bring us new ideas and keep up with us technologically.”

        Alliance approached SFG based on information found on the bindery’s website and toured five bindery facilities before choosing to place the project with SFG. For SFG, this project involved five body types, 22 different covers, pouches and sticker sheets – any number of different items that can be bound into the book. A school can order personalized sheets under the front cover, which could range from one page of contact information to a fully customized school handbook. The orders range from 25 books to 5,000 and are completely customized.

        Again, the complexity of the project requires that the bindery be an integral part of the complete production process, rather than a sub-agent of the printer. SFG has successfully managed its relationships with the printers and the end users by following a few guidelines.

        Tips for stepping outside of the sales comfort zone

        Based on the points of view of both of these end users, here are some DOs and DON’Ts to consider when dealing with an end user directly.

        Do: Be sure your print customers know the capabilities of your business. Feature new technologies, new processes and ways to do things more productively. The very act of introducing new ideas may convince the printer to showcase your work to more end users.

        Do: Call on end users, marketing agencies, publishers and print management companies that are not in your print client’s circles. Stop operating within a specific geography – today’s global marketplace ensures that we can work productively with companies far beyond our geographic scope.

        Do: Ask if you can go with the print salesperson as a team to show your service offerings to the end user. In a true partnership, a focus on results will win more business for both of you.

        Don’t: Sell directly to your print client’s customers. This is bad business, unless…

        Do: Ask a print sales manager, salesperson or owner if you can sell directly to one of their clients if there’s a compelling reason. There may be situations where the complex nature of the work makes more sense for the customer to work directly with the binder or finisher. Not every situation has a one-size-fits-all solution.

        Do: When you get an estimate request from an end user and then receive a request for the same project from a printer, suggest that you see the client together. A team approach might serve the client better and helps to solidify your relationship with the printer at the same time. Dream Team!

        Don’t: Give pricing to end users if your print client takes you with them. The printer is allowing you to show your inventive services, so support your client and let the print salesperson guide your next steps.

        Do: Share information with a printer who introduced you to an end user. Information that helps them sell more to their clients will make you indispensable to the printer. Bringing this type of added value to the relationship helps you stay relevant and ensures the customer is consistently thrilled.

        Don’t: Be secretive or do anything that could be perceived by your print client as shady. Err on the side of over-communication and be VERY transparent.

        We would love to hear more from you about this, especially from printers. Can you give us more Dos and Don’ts? Let us know. Good luck, and happy selling. Game on!

        John Mascari is the executive vice president of Specialty Finishing Group, Inc. For more information, visit www.sfgrp.com.

        Create a Sustainable Competitive Advantage

        August 21, 2013

        by Ken Garner

        Association of Marketing Service Providers (AMSP)

        I have been asked, “What’s next?” by a number of AMSP members who believe they have successfully transformed their companies to become Marketing Service Providers. The question is asked in a way that suggests a final destination at the end of a long road of transformation has been reached. I’m afraid I have some sobering news – the process of creating a sustainable competitive advantage never ends. It’s continuous.

        Every business is defined by a cycle

        This business cycle is best graphically represented by what is known as an “S-curve.” The base of the curve represents the business’ launch phase – the time at which a fresh and relevant value proposition begins to be rewarded with customer support. The stem of the curve represents the growth phase of the cycle. During this phase, business decision makers focus on maximizing profits. This phase typically involves heavy investment in assets required to increase the volume of production. It’s often characterized by a significant growth in debt as management is totally focused on “harvesting” and may be blinded by the success of the value the business is creating.

        Danger lies at the top of the curve

        The point at which the cycle tops out and begins to decline is known as the “stall point.” This reflects the end of the growth phase and represents a very dangerous point for the future of the business. According to Matthew Olson and Derek Van Bever, authors of the book Stall Points, only seven percent of companies are able to recover and return to growth after hitting a stall point. According to the authors, the average company loses 74 percent of its market capitalization in the decade following the growth stall. In short, the odds of surviving a stall point are extremely low.

        Learn from the “S-Curve” and the stall points

        Obviously, the first lesson is to avoid a growth stall that very well could represent the final chapter in the life of a business. But, the key to avoiding a stall point is understanding where your business is within the business cycle. In other words, where is your business positioned on the S-curve? You need to know how much life your current value proposition has left, a task much easier said than done.

        Clues as to how much life your value proposition has left can come from a number of sources.

        • Examine the rate and pace of new sales.
        • Track customer retention and closely examine the reasons given by those customers who are opting to leave.
        • Develop an understanding of what your competitors are offering and the level of success they seem to be enjoying.
        • Constantly meet with your customers to see what their wants, needs and expectations are – not just for today, but for the future. What keeps them up at night?
        • Know how long you have been riding the “growth” or “harvesting” phase. It can’t go on forever!
        • Listen to feedback from your sales and customer service teams.
        • Attend trade shows and conferences that are related to your industry and your customers’ industries.
        • Read trade magazines that cover your industry and the industries represented by your customers.
        • Actively engage in your trade association.

        Market Intelligence

        Assess your company’s current situation, including strengths, weaknesses, threats, opportunities and competitive landscape. This is sometimes known as a “SWOT” analysis. This exercise often is part of an annual business planning or strategic planning session involving the business’ leadership team. Once you have assessed your current and desired customer landscape, you can identify the universe of available growth opportunities.

        Following that, you need to research, prioritize and articulate a strategy that is in alignment with your objectives. The key is to understand that sustaining a competitive advantage is dependent on a continuous process of assessing the value your business creates and committing to an ongoing process of updating your value proposition based on the process described above. You need to understand where your company sits in the business cycle and what you need to do to jump the stall point. This is a journey without an end, unless or until you decide to sell or close the business.

        Ken Garner joined the Association of Marketing Service Providers in November 2008 as its president and CEO after a 33-year career at United Litho. He served as director on the boards of the Printing Industry of Virginia, the National Association for Printing Leadership and the Graphic Arts Show Corporation, and as chairman of the Environmental Conservation Board, PIA’s Executive Development Program, the Graphic Arts Education & Research Foundation and NAPL. He is a member of NAPL’s Walter E. Soderstrom Society. For more information, visit www.mfsanet.org.

        Payroll Systems Can Help Determine ACA Responsibilities

        June 13, 2013

        by Marsha Oliver, CPA, Mize Houser & Company P.A.

        UPDATE: Obama Administration Delays ACA Employer Mandate

        • The Obama Administration on July 2 announced a one year delay of the employer mandate portion of the Affordable Care Act, which had been scheduled to take effect on Jan. 1, 2014. Read more …

        While most businesses hoped the Affordable Care Act (ACA) would just “go away,” it certainly hasn’t. And while the thought of how it will affect business may be overwhelming, the best place to begin researching employer responsibilities is the payroll system.

        Whether payrolls are prepared in house or outsourced to a payroll provider, the details in the payment history files contain insight into how the ACA will affect a business and its employees. The data from the payroll system – which is easy to retrieve and analyze – will enable employers to

        • Determine if the company is considered an “Applicable Large Employer” and must comply with the Employer Mandate of the ACA.
        • Work effectively with an insurance advisor to reach a decision whether to “pay or play”.
        • Remain in compliance as the law evolves.

        President Obama signed the ACA into law on March 23, 2010. It puts in place comprehensive health insurance reforms that will roll out over a period of four years and beyond. Let’s take a look at what has happened so far – and what is anticipated to happen in the future.

        2012 – Employers were required to report the total health insurance premiums paid on a company plan on each employee’s W-2. Although that information was most likely not something tracked in the payroll system, it had to be added to comply with the 2012 filing requirement.

        2013 – Here’s where the information in the payroll system about employees’ “hours of service” and total wages will really come in handy. This is the year all employers must determine if the ACA Employer Mandate applies to them – and if it does, to decide whether to “pay or play”.

        The ACA Employer Mandate applies to organizations that are considered “Applicable Large Employers”. An Applicable Large Employer had at least 50 full-time equivalents in the preceding calendar year. Note: During this year only, employers are granted a Transition Period and can use a six month period in 2013. The measurement period must begin no later than July 1, 2013, and end no earlier than 90 days before the first day of the plan year beginning in 2014.

        For planning purposes, use the following calculation for a recent consecutive six- to 12-month period to measure full-time equivalents.

        • Start With: The number of known full-time employees (expected to work an average of 30 hours or more per week) for a calendar month
        • Add: The number of hours of service of part-time employees in a month, divided by 120

        The resulting number is your “Total Full Time Equivalent Employees” for a calendar month. The next step is to add together the number of full time equivalent employees for each calendar month in the preceding calendar year and then divide by 12 (or the number of months that will be used for the 2013 transition period). The result, if not a whole number, is rounded to the next lowest whole number. If that number is 50 or more, the company must comply with the ACA. Employers then have two options:

        1. PLAY – Offer affordable and minimum essential health insurance to full-time employees (not full-time equivalents as calculated to determine if you are an Applicable Large Employer) and their dependents. Full-time employees for this purpose are defined as employees who are “employed on average at least 30 hours of service per week.”
        2. PAY – Do not offer insurance or offer insurance that is not affordable or that does not provide minimum value and pay a penalty/tax.

        Again, as businesses consider these two very different options, a look at the payroll system can provide the information needed to compare the impact of each. Employers should be able to:

        • Look back over several acceptable time frames to determine how many employees would have been eligible for coverage if the plan were in effect today.
        • Determine the maximum withholding from employees’ income if the plan were in effect today (under the Form W-2 safe harbor, employee’s withheld amount for employee only coverage must not exceed 9 1/2 percent of their current year’s Box 1, W-2 income). Note that employers are not penalized for failing to subsidize any of the premium for dependent coverage.

        The information will provide much of what’s needed for employers to “shop” for a health insurance carrier. Once expected premium costs are determined, employers will be in a better position to decide whether to “pay or play”. If they decide to “play”, most intend to have this analysis completed in time to contract with an insurance company by Oct. 1, 2013. This should allow enough time to offer coverage to eligible employees, get them enrolled and begin coverage Jan. 1, 2014 – when the Employer Mandate officially begins.

        2014 and beyond – Based on what we know today, the payroll system should continue to provide the information needed to remain in compliance. This will include tracking:

        • If employees already in the plan are eligible to continue
        • If additional existing employees become eligible
        • When employees added after Dec. 31, 2013, become eligible and should be offered coverage
        • Enrollments in the insurance plan
        • Full and part-time employees who are working more (or less) than their status assumes – this will enable employers to keep budgeted plan costs as stable as possible.

        Of course there are many decisions to make surrounding the ACA and each company’s situation is unique. A good payroll system not only should be a means to pay employees – it also should be a resource to make a good business decision about whether to “pay or play” and to remain in compliance with the ACA.

        This article is provided by the regional CPA and information technology firm of Mize Houser & Company P.A. The firm processes payrolls for over 1,500 locations in more than 40 states. To learn more, please contact Marsha Oliver, CPA, Marketing Shareholder, at moliver@mizehouser.com or 785.233.0536 in Topeka, KS – or visit www.mizehouser.com.

         

        From Surviving to Thriving: Lessons Learned When Adding Services to the Bindery

        November 21, 2012

        by Melissa DeDonder

        With increased competition and a shaky economy, one of the biggest challenges facing binderies today may be keeping the doors open. Many binderies have been able to move from merely surviving to thriving in today’s marketplace by investing in the equipment needed to expand the range of services that they are providing. Four companies share the secrets to their success.

        Slow and steady growth in packaging wins the race at CRT, Custom Products, Inc.

        CRT, Custom Products, Inc., Whites Creek, TN, was founded in 1979 to provide top-quality custom packaging services for the entertainment industry in Nashville. Over the years, the company has expanded its customer base to service the national entertainment, software and communications industries.

        CRT, Custom Products, Inc. is highly diversified, providing digital and offset printing, a complete prepress department, CAD/CAM package design, diecutting, gluing, folding, saddlestitching, foil stamping and embossing, riveting, turned edge products, blister/clam shell packaging, softcover bookbinding, fulfillment and distribution and much more.

        “The secret to CRT’s success has been adding services slowly – expanding one service at a time over the years,” said Ron Brower, marketing director. “Every piece of equipment that we’ve bought has been customer driven – we wanted to offer our customers more value by not having to farm out the additional services that they needed,” Brower said. The company became a one-stop-shop for custom packaging services because it ultimately saves the customer money and keeps the entire project in-house – a win for the company as well as the customer.

        Brower echoes a popular sentiment that referrals offer the strongest sales leads, but the company also relies on several traditional marketing services to get the word out, including print advertising, web banners, pay-per-click advertising, organic search engine optimization, email marketing and social media.

        While the company has a wall full of gold and platinum records for musicians’ projects that it has manufactured, a key to success is the company’s many certifications. “They are as important to us as any award, because many of them were much harder to obtain,” Brower said. CRT, Custom Products, Inc.’s certifications include the following: G7 Print Media Master Certified, SFI Certified, FSC Certified and Nintendo of America Certified. In addition, the company is a Microsoft Certified Solution Provider and a WBENC Certified woman-owned business.

        Book Boutique creates the unique for self-publishers

        The Book Boutique, a division of Advantage Book Binding, Inc. in Glen Burnie, MD, provides complete book finishing services for self- publishers, with services that include specialty binding, repair work and custom packaging such as clamshell boxes, tablet cases and slipcases. In the summer of 2010, the company created its Book Boutique after noticing that many customers had been expressing an increased desire to create one-of-a-kind custom books that would stand out in the marketplace.

        To create such masterpieces, the company uses various hand machines, turn-of-the-century book presses and antique blades in combination with techniques such as hand skiving and hand tooling. “The uniqueness of our boutique is the personal touch that we provide, which has been vacant in the marketplace for many years,” said Christine Webbert, director of the Book Boutique. “We feel that we take more of an in-depth approach, which helps us achieve goals and exceed expectations.”

        The Book Boutique represents 20 percent of Advantage Book Binding, Inc.’s business. It has increased sales, provided more benefits to existing customers and increased the company’s pool of potential customers. The Book Boutique’s services are marketed through its own website – independent of the parent company – as well as through tradeshows and publishing conferences. Local book stores, schools and faith-based stores are targeted via sales flyers and personal visits from the sales team. In addition to these efforts, Webbert says that the company’s greatest marketing tools are client referrals and “word of mouth” advertising.

        The Book Boutique has won numerous awards, including the 2012 Printing and Graphics Association MidAtlantic (PGAMA) Award for Best in Finishing/Binding – Q Award and the Best of Category in Finishing/Binding for the National Opera project, which featured raw silk and a clamshell custom box, and the 2011 PGAMA Best of Category in Finishing/Binding and the People’s Choice Award for the Charles E. Smith leatherbound book and slipcase.

        New Hampshire Bindery goes for the gold with restoration and gilding

        New Hampshire Bindery in Bow, NH, was founded in 1934. In the early days, the company’s collating, book lining and casing services were completed by hand. Over the years, machinery replaced much of the handwork and the company invested in new equipment to increase its capacity. By 1995, the company was binding more than two million books each year. Although the company had been restoring old books for years, with an influx of new equipment New Hampshire Bindery created a department specializing in restoration work and gilding that would take the company to new heights.

        The machines needed for book restoration are highly specialized – skiving machines to prepare the leather, large stamping presses for the detail work and gilding machines that can apply gold to both straight and round corners. Plus, skilled craftsmen are needed to do the handwork. “These investments produce a book that people will treasure, not only for the contents, but also for its beautiful craftsmanship,” said Tom Ives, president/CEO.

        “We are one of only a handful of binderies in the US that can offer such a wide spectrum of services,” Ives said. “And, specialty bookbinding is one of the only areas that we have seen growth in lately. While the economy is not very good, the market for people wanting leatherbound gilded books seems to be growing.” The company credits its website and its loyal customers, including book dealers and historical societies, for its boom in business. “We find that our customers are our best salespersons,” Ives said.

        New Hampshire Bindery has won numerous local awards over the years, and last year the company won the Product of Excellence Award in the Special Products Category from the Binding Industries Association.

        Specialty Finishing Group masters mailing and fulfillment services

        Specialty Finishing Group, Elk Grove Village, IL, was founded in the 1920s by a father and son team who represented Spiral of Illinois and JMM Services, respectively. Specialty Finishing Group had generations of expertise in mechanical binding and all of the services that went along with that, so the company’s move toward mailing services in 1994 was a big step. At that time, the company purchased a few inkjet systems; however, changes were coming just around the corner as the Internet exploded in popularity, bringing with it the invention of ebooks and changing the fate of the postal system.

        “My father and a friend put me in charge of getting our new mailing venture off the ground, and I will never forget what it was like having all of that technology with no idea how to use it,” said John Mascari, president. He explained that once the digital age started taking a piece of the bindery pie, Specialty Finishing Group made the decision in 2004 to expand its service portfolio to include the remaining lettershop services – data services, more inkjetting, inserting, wafer sealing, labeling, stamp affixing and laser printing.

        “By adding mailing services instead of expanding the bindery, we were able to even out our seasonal workload so that our plant would stay busy most of the year, and we would be able to keep revenue flowing even throughout the days of the digitalization of books and manuals,” Mascari said.

        In the last six months, Specialty Finishing Group has taken things to another level by offering match mailing, card affixing and read/write services. Mascari said that card affixing has become a new lettershop standard because recipients are more likely to open an envelope or self-mailer if they feel there may be something inside. “So, even if a binder does not want to be a full service lettershop, they can add card affixing equipment to an existing line with a glue system to offer this service to mailers and printers. These lines can do more than direct mail, so there is additional value in them as well,” Mascari said.

        Mailing services currently represent 35 percent of Specialty Finishing Group’s revenue. “We feel strongly that our mailing services revenue will surpass our binding revenue by the end of 2013. Our binding business is declining due to book digitalization and international outsourcing, but the mailing business doesn’t have that problem.” He said that many reports indicate that the mailing business market has stabilized from the effects of email and web advertising. Mascari continued, “The other positive is that direct mail cannot be outsourced to other countries like book production can be. Because direct mail has a short production timeline and an in-home window, the print manufacturing has to happen in the US.”

        For companies that want to start mailing and fulfillment services, Mascari recommends investing in an inserter and an inkjet system on a mail base. “There are many options available, so binderies should do their homework,” he said. When considering data services, Mascari advised, “Don’t do it! It is costly to find someone to manage it correctly, and the postal liability is huge. Instead, send the data out for USPS sortation and add data services later, if need be.” He said that working with the USPS can be scary, but it doesn’t have to be. “The local post office can assign a local representative so that businesses have someone to go to when starting a project. Use their business service network to get preapproval for postal rates via email.”

        Finally, Mascari suggests binderies avoid the “if you offer it, they will use it” mentality. “We thought that we could convert many of our clients to our mailing services right away, but that was not the case,” he said. “Our clients were already using someone they trusted, and other binderies will find that, too, so talk to clients before making an investment.”

        A View from Finishing’s Side of the Fence

        In recent years, binderies have been venturing outside of the traditional binding arena when looking to expand the services that they are providing. McGraphics, Inc., a custom print finisher and BIA member in Nashville, TN, has been investing in and expanding its bindery services to attract new customers during challenging economic times.

        With a slogan of “we finish what you start,” McGraphics has provided custom print finishing since 1986. When it was founded, the company primarily focused on foil stamping, embossing and diecutting, as well as small format letterhead, envelopes and pocket folders. In 2009, McGraphics expanded its bindery services in response to the growing needs of its customers. Today, the company offers up to 40 diecutting and foil stamping, in-house diemaking, folding and gluing, indexing and UV coating services. McGraphics recently added wire-o binding services to its line up in order to fulfill its growing digital printer market.

        CEO Tommy McEwen said that bindery services account for 15 percent of McGraphics’ business. “It’s been an investment that has paid off. The equipment has been very affordable, and we’ve generated new customers because of our increased capabilities,” McEwen said. There have been challenges, including turnaround time and competitive pricing.

        Despite the challenges, McGraphics, Inc. has pushed forward successfully. The BIA recently recognized the company’s efforts with a Product of Excellence award in 2012 for its Holiday Leftovers self-promotion piece. In 2011, the company received the Trade Finisher of the Year award from the BIA.

        The Mechanics of Delivering Online Value

        November 21, 2012

        by Landy Chase

        When it comes to providing quality content to your online community, you don’t need to be an expert, and you don’t need to be personally responsible for creating new ideas. You need only to be skilled at redistributing information produced by others to those who follow you. To illustrate how this process works, consider a common traditional selling model.

        This author has worked in the past with distribution-based industries and their sales forces. There are many variations of this selling channel, but in almost all cases the relationships involve manufacturers that produce goods which are then sold through distributors; this is simply an alternative to selling directly through an internally-housed sales force. The distributor companies who represent the manufacturer are usually independent, privately-owned businesses who are licensed to sell the manufacturer’s goods and services in a defined territory. The distributor company buys inventory from the manufacturer and then resells (distributes) that inventory to customers within its defined markets.

        As a value generator, your marketing process works in exactly the same way. The goods and services (content) that you provide to your online community/defined market are “manufactured” by anyone and everyone on the internet who is writing about information that is of interest to your followers. You get your “inventory” from these manufacturing sources via RSS feeds “for free, of course” and then you distribute the best of that inventory to the customers and prospects who are following you within your online community.

        This defines your role as a value generator to your online community as one of a distributor of content, and not, unless you choose to be one, a manufacturer of it. You will review relevant information online from those “manufacturers” that interest you and your job will then be to evaluate this information, select items of interest to your followers, and, with a single click of your mouse, deliver it to every single one of them. The benefits to you are not only free; they are myriad and profound. By redistributing useful content to your online followers, you will build your own bridge of “know, like and trust” with your online community. You will establish your brand as a thought leader and expert. You will receive an invaluable, free education in aspects of your industry from others in the business whose knowledge you do not currently possess. And, best of all, when the buyers – both existing customers and prospects – in your community have a need for what you sell, they are going to contact you because they buy, like all buyers do, based on familiarity. You are seen as the go-to source for value, and you are viewed as the option that presents the least risk.

        Utilizing social media in this way certainly would be time-consuming if we were suggesting that you spend hours on Google or one of the other search engines, continually typing in keywords and scouring the Internet for articles and information that would be useful to your online community. That is how you currently research information for yourself, right? And now you think that I am asking you to do the same thing for the benefit of your customers and prospects. Think again.

        Let’s go back to the distribution sales model for a moment. A distributor who sells for manufacturers does not go out into the marketplace every day looking for suppliers with product to sell. Rather, they have ongoing relationships with the manufacturers that they have chosen to work with, and those manufacturing partners supply the distributor with the product that they need to then provide to their end-user customers. The distributor doesn’t have to go looking for inventory; inventory is provided to them by their selected manufacturing partners.

        As a distributor of online content, the technology is readily available to provide you with exactly the same kind of relationship and service that the traditional distributor gets from his manufacturers. With just a few simple steps on your computer, the online “manufacturers” (content producers) that you choose to partner with (follow) will deliver an endless supply of free, high-quality product (content) that you then can review and distribute to your end-users as you see fit. In other words, after some initial set-up work, no searching on your part is necessary; everything that you need will be delivered to your inbox the moment that it is produced.

        Excerpted from Landy Chase’s book, “The Social Media Sales Revolution,” available via Amazon. Landy Chase, MBA, CSP is an expert who specializes in speaking to corporations and associations on sales and selling with social media. His last book, “Competitive Selling,” was named an Editors Choice Best Business Books of 2010 selection and also is available on amazon.com. To book Chase for a next sales meeting or conference, visit his website at www.sellingrevolution.com or call 800.370.8026.

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