Profitability and the Smaller Printer
Energize Your Business ConferenceMay 4, 2013
TODAY’S GOAL
Take Home at Least One Good Idea to Help You Make More Money
TODAY’S FORMAT
Got a Question? Let’s Stop for a Moment and Talk About It
• Founded in 1987
• All B2B Clients
• Digital • Offset • Wide Format • Fulfillment
• 6000 Sq. feet
• 6 employees
• Consistently High SPE
ABOUT SORRENTO MESA
My Typical Day
What I do
“If change is not your best friend,it will become your worst enemy”
-unknown
100%
Offset Digital
2005
24%
76%
Offset Digital
2012
Our Sales
The Road to Increased Profitability Involves Creating
Order out of Chaos
PeopleSales &
Marketing
Systems Financial
MetricsHow Do We Measure Profitability?
SPEAnnual Sales / Employees
100K 120K 140K 160K
OWNER’S COMPENSATION
What’s Left After All Expenses Paid
5% 10% 15% 20%
“Business in not a game of volume, it’s a game of margins”
- Larry Steinmetz
www.pricingexpert.com
Systems
Systems
• Fast Workstations / Fast Servers / Centralized Storage
• Larger Monitors (24” and above)
• MIS / Print Management Software
• CRM / CMS Software (Goldmine / ACT / Salesforce)
• Color Managed ROOM (Rip Once Output Many) Workflow
• WiFi or Gigabit Ethernet?
Why Creative Cloud?
Hot Folders
Web 2 PrintB2B or B2C ?
Corporate Branded Portals
also kno! as “"e Velvet Handcuffs”
People
“Leaders of Great Companies Start by Getting the Right People on the Bus, the Wrong People off the Bus, and the Right People in
the Right Seats.”
- Jim Collins author of Good to Great
People
• Production Meetings Every Morning
• Cross Trained Flexible Workforce
• Hire for Chemistry, Skills Can be Taught
• Empowerment Builds Confidence
• Reduce or Minimize Turnover
• Encourage a Culture of “Best Practices”
No Slacker Zone
Financial
Which Financial Report Tells You the Health of Your Company?
Balance Sheet or P&L ?
Current Ratio
Current Assets / Current Liabilities
1.0 1.5 2.0 3.0
Buy or Lease?
What do you negotiate?Price or Payment
• Lower Cost of Financing
• Can Pay Off Early
• You Own it
• Accelerated Depreciation (Section 179)
• Down Payment
• Credit Line Impact
• Disposition of Retired Equipment
• Needs Stronger Balance Sheet
Buy Pros Cons
• Lower Upfront Costs
• Weaker Balance Sheet Qualifies
• No Impact on Credit Line
• Entire Payment Deductible
• Upgrade Possible but Expensive
• Higher Cost of Financing
• Can’t Pay Off Early
• FMV is What They Say It Is
• Total Cost Unknown Until Buyout
• “Gotcha” Clauses
Lease Pros Cons
Friends Don’t let Friends Roll Leases
Buying Used or Demo Saves Big Bucks
Sales & Marketing
Marketing and Sales are Two Different DisciplinesMarketing Promotes Your Brand in the Marketplace
Setting the Stage for the Execution of the Sales Process
Marketing
• SEM (Search Engine Marketing) = SEO+PPC
• Social Media (LinkedIn, Facebook, Twitter)
• Direct Mail
• Website
• Blog (Content Marketing)
• Cross Media Campaigns
Sales
• Build a Personal Brand on LinkedIn
• Research Prospect’s on LinkedIn First
• Sales Letters
• Telemarketing
• Referral Marketing (BNI) - Train a Virtual Sales Force
• Generate More Business From Current Accounts
The Selling Owner Carries Instant Credibility
Final Thoughts
Higher Profits Come From Selling not Bidding
Specialists Earn Higher Profits Than Generalists
The Level of Your Profits is Directly Related to the
Quality of Your Decisions
www.sorrentomesa.com7398 Trade St. San Diego, CA 92121 858.527.0800
www.linkedin.com/in/scottmcappelwww.linkedin.com/company/sorrento-mesa-printing
www.facebook.com/sorrentomesa
www.twitter.com/sorrentomesa
Q & A
Thank You