Would printers be surprised to realize that many of their competitors are pricing work by pulling a price out of the air? Even into today's high tech world, many printers still price work by guessing at their costs and trying to determine what the customer will pay. Is it any wonder that economists at groups such as PIA report that only 25 percent of printers make money?

Estimating systems have come a long way in the past 10 years. What started as simple pricing spreadsheets has evolved into sophisticated computer systems that combine estimating, accounts receivable, and marketing tools. The systems can easily be networked and most work on either Macs or PCs. Most importantly, the printing business management systems are affordable to any size print shop.

Automate for Success

If you are a printer who doesn't have an estimating system, you are losing money every time you price a job. Manually calculating prices leads to math errors. Not capturing sales history information results in lost sales in the future. Manual accounts receivable systems make it harder to get invoices out and delay getting cash from the customer.

If printers expect to compete into today's market, they must automate their business management system. The benefits the programs offer are the features a first time buyer needs to be looking for in a program. At a recent printing conference, I asked a group of successful printers who use business management systems what features a printer buying his first business management system should be looking for in a program. They suggested:

• The program can be password protected to keep a disgruntled employee from messing up the system.
• The program can be easily backed up to assure that data isn't lost.
• The program should have an easy-to-read manual that makes training easier.
• The program should be able to break down sales into as many categories as needed.
• The program should be able to charge sales tax for state, county, city, etc., and break down and show the different amounts on the invoice.
• The program should create a job ticket that gives all the information needed to produce the work as well as have the ability to type in specific instructions.
• The program should have standard reports (sales to date, sales by customer, sales by product, reorder reports, etc.) and the ability to create custom reports from the captured data.
• The program should give the printer the ability to focus on top customers and provide information about what they order, when they order, and how they order.
• The program should have remote access so an owner/manager can access the system from any location.
• The program can be easily updated to handle price increases and use standardized tables.
• The program must be easy to understand so it is easy to train employees to use it.
• The program needs to provide the ability to make manual adjustments.
• The program must produce accurate and consistent pricing.
• The program should integrate into Web-to-print solutions and e-business.
• The program should help improve customer service by automating the reorder process.

Why haven't all printers adopted a computerized business management program? There are two common answers:

• Time: Printers report they don't have time to implement the program. They don't have time to check paper prices and add the information needed to produce the price lists. Without an automated business management system, the printer isn't going to have time to focus on the more important functions in the shop, such as sales and managing costs.
• Don't trust the numbers: Most printers don't know their costs, so when they input the production information needed to create the price, they are surprised at the price created by the computerized program. Usually the prices are much higher than what the printer currently charges for the service. When the printer puts in his costs and identifies the profit margin he wants, the prices created are much higher. The program shows the real prices that should be charged and, rather than admitting he is not charging enough, the printer blames the estimating program and says the pricing is wrong.

As a consultant, my suggestion to any printer who doesn't have an automated business management system is: Buy one today.

When talking to other consultants, they report that the majority of printers they talk to do not have automated business systems or websites. Perhaps that is the reason that PIA says that only 25 percent of the printers make money.

Contributing editor John Giles is the owner of The Giles Group, a training and consulting firm specializing in digital file issues. Giles conducts digital audits for quick printers as well as file preparation training seminars for printing customers. He is the author of several books and is technology director for CPRINT (Certified Printers International). Contact Giles at 304/552-5363, by e-mail at john@johngiles.com, or visit his website at www.johngiles.com.