Call Preparation Questions

Conversation Starters

How does the company respond to fluctuating demand for services?
The volume of commercial printing is closely tied to the health of the US economy.

How does the company mitigate increases in ink and paper costs?
Printers feel the impact of cost fluctuations of paper and ink prices, as paper accounts for about 25 percent of printing costs.

How does increased use of digital media affect the company's production volume and sales?
Information distribution via electronic means, such as the Internet and especially email, will reduce demand for printed materials.

What plans does the company have to add new computer or digital technology to improve production and services?
Increased use of digital files and low-cost courier services, and the increased ability of modern presses to accurately reproduce digitally prescribed colors, allow printers to solicit and fulfill orders from distant customers using the Internet.

What non-printing value-added services does the company offer, and to what benefit?
Front-end design services and back-end inventory and distribution services are often as valuable as press operations.

How have online print production management solutions impacted the company's cost savings and processing speed?
Innovative commercial printers are using the Web to allow clients to track jobs.

Quarterly Industry Update

How will new postal rate increases affect the company?
The new rate structure could lead to fewer direct mailings for many direct marketers.

Other than transportation, how do rising natural gas and oil prices lead to higher raw material costs?
Most of the materials used in the commercial printing industry are derived from oil or natural gas.

Operations, Products, and Facilities

In what types of work does the company specialize?
Some examples include magazines, phone books, labels, checks, coupons, advertising brochures and catalogs, newspaper inserts, direct mail marketing pieces, corporate reports and other financial printing, training manuals, and business forms.

What types of presses does the company have?
A company may have sheet fed, Web presses, two-, four-, six-, or eight-color or digital presses. Larger, heavier-duty 40-inch presses open the door to packaging print jobs.

Does the company use digital or film processing methods?
Most larger advertising agencies and publishers have gone to total digital processes.

Does the company use computer-to-plate technology?
Computer-to-plate units can lower costs and reduce waste compared to traditional image setting machines.

How much prepress design work does the company do?
Electronic prepress is the fastest-growing segment of the industry.

Does the company buy paper from one or several sources?
Most printers order paper for each printing job from wholesale distributors.

How does the company's print capacity utilization vary from month to month?
Due to the high fixed costs for presses, capacity utilization is key to profitability.

What finishing and fulfillment services does the company offer?
Finishing services include folding, cutting, and binding. Fulfillment includes packing, storing, and shipping. Some companies offer selective binding to customize documents for individual customers.

Customers, Marketing, Pricing, Competition

What is the average size of a customer order?

How many customers does the company serve? In what types of industries?
Advertising and financial printing are the largest markets for commercial printing.

Does the company specialize in a particular industry?
Small printers may specialize to offer better customer service and specialized capabilities.

Who are the company's competitors?
Companies typically compete with other local printers, but the Internet is allowing companies to offer their services on a wider geographic basis.

Does the company have any long-term contracts?
Contracts are unusual except for long-run printing of magazines, catalogs, and directories, because they require special investment in large presses. Most commercial printing work is on a project basis, often after submission of bids to the customer.

How sensitive are customers to price?
Some customers are more concerned about quality and timeliness than price.

Regulations, R&D, Imports and Exports

Has the company experimented with new types of ink?
Interest has increased in single-fluid inks, which are waterless, and water-washable inks that provide faster startups and wider temperature latitude; their cleanup requires no solvents.

Does the company have any export business?
This is unusual except for specialized products like banknotes.

How has the company addressed ergonomics and safety in its business?
Commercial printers have high rates of repetitive motion injury and injury from hands caught in machinery.

Organization and Management

How does the printer plan to mitigate higher medical insurance costs for employees?
The largest increase in expenses is estimated to come from employee medical benefits.

Is the company a division of a larger corporation?
Some local companies are operated semi-autonomously by consolidators.

What challenges has the company faced in recruiting skilled personnel, especially for prepress services?
Because of the competitive demand for people with computer skills, printers have had difficulty finding enough skilled personnel.

How big a sales force does the company have?
Marketing is usually through a traditional sales force calling on potential customers. Technology has enabled many firms to branch out geographically.

Financial Analysis

Are revenue and cash flow seasonal?
Printers with a lot of customers in advertising have their greatest work load in third and fourth quarters.

When does the company project it will need new presses? How does the company typically finance new presses?
Presses are the largest single investment of a printer, often accounting for 40 percent of total assets.

Does the company routinely pass the cost of paper to customers?
Most printers put a small markup on paper. Some customers provide their own paper.

Business and Technology Strategies

What computer or digital technology does the company use in equipment or processes?
Digital prepress design, digital presses, Internet communications, and digital image inventory are some.

Does the company plan to add non-printing value-added services?
Front-end design services and back-end inventory and distribution services are becoming more valuable to customers. Packaging, electronic prepress, finishing, binding, database management, Website design, CD services, training, and consulting are some of the services that printers offer.

What role does the Internet play in the company's current and future operations?
Some printers use Internet sites to receive digital files from customers; others use them for marketing.

What are the company's most important opportunities for growth?
The overall outlook for printers is for low growth, so companies are looking for opportunities to expand services and markets.

How does the company differentiate itself from competitors?
Price, quality, fast service, and special services are some ways to compete.