|How Unutilized Printing Capacity Can Generate New Business|
There are more than 3,000 printing companies in Singapore. In this very competitive environment, printing companies should focus on re-thinking the way they do business, and use barter as a financial tool to generate new business, improve cash flow and maximize profits.
Every printing company has sunk in a very substantial capital investment in state of the art printing machines and considerable fixed costs such as amortization, insurance, payroll, staff benefits, mortgage, rent, administrative costs which remain fairly constant regardless of business levels. As in any other industry, printing has its peak and slow periods and unutilized printing capacity at the end of each day results in loss of revenue which cannot be replaced.
By taking advantage of their slow periods, printing companies can take on new business on barter and use trade credits earned to purchase products and service which they would have paid for in hard cash.
It is always more challenging to sell one’s products and services in cash. Barter opens up doors to new business, for example, a printing company who offers a package, for a long term contract in printing brochures, in part cash and part trade will gain an edge over the competition. Trade credits earned can be used for courier or delivery services, restaurant vouchers to discuss new business deals or hotel stay in Australia for sales staff who have performed beyond expectations.
Another key benefit is that over time, barter arrangements will create a substantial word-of-mouth following and develop customer loyalty. Third party endorsement is one of the most effective marketing channels. As soon as we fully understand the fact that barter is about new business, and does not dilute nor replace cash business, we will realize its phenomenal power as a financial tool.